Legislature(2021 - 2022)BARNES 124

03/11/2022 01:00 PM House RESOURCES

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= HJR 34 NAT'L PETROLEUM RESERVE IN ALASKA TELECONFERENCED
Moved HJR 34 Out of Committee
+ HB 299 MICROREACTORS TELECONFERENCED
Heard & Held
-- Invited & Public Testimony --
+ Bills Previously Heard/Scheduled TELECONFERENCED
                    ALASKA STATE LEGISLATURE                                                                                  
               HOUSE RESOURCES STANDING COMMITTEE                                                                             
                         March 11, 2022                                                                                         
                           1:02 p.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Josiah Patkotak, Chair                                                                                           
Representative Grier Hopkins, Vice Chair                                                                                        
Representative Calvin Schrage                                                                                                   
Representative Sara Hannan                                                                                                      
Representative George Rauscher                                                                                                  
Representative Ronald Gillham                                                                                                   
Representative Tom McKay (via teleconference)                                                                                   
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative Zack Fields                                                                                                      
Representative Mike Cronk                                                                                                       
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
HOUSE JOINT RESOLUTION NO. 34                                                                                                   
Supporting oil and gas leasing and development within the                                                                       
National Petroleum Reserve in Alaska.                                                                                           
                                                                                                                                
     - MOVED HJR 34 OUT OF COMMITTEE                                                                                            
                                                                                                                                
HOUSE BILL NO. 299                                                                                                              
"An Act relating to microreactors."                                                                                             
                                                                                                                                
     - HEARD & HELD                                                                                                             
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: HJR 34                                                                                                                  
SHORT TITLE: NAT'L PETROLEUM RESERVE IN ALASKA                                                                                  
SPONSOR(s): REPRESENTATIVE(s) PATKOTAK                                                                                          
                                                                                                                                
02/22/22       (H)       READ THE FIRST TIME - REFERRALS                                                                        
02/22/22       (H)       RES                                                                                                    
03/09/22       (H)       RES AT 1:00 PM BARNES 124                                                                              
03/09/22       (H)       Heard & Held                                                                                           
03/09/22       (H)       MINUTE(RES)                                                                                            
03/11/22       (H)       RES AT 1:00 PM BARNES 124                                                                              
                                                                                                                                
BILL: HB 299                                                                                                                  
SHORT TITLE: MICROREACTORS                                                                                                      
SPONSOR(s): RULES BY REQUEST OF THE GOVERNOR                                                                                    
                                                                                                                                
02/04/22       (H)       READ THE FIRST TIME - REFERRALS                                                                        
02/04/22       (H)       ENE, RES                                                                                               
02/08/22       (H)       ENE AT 10:15 AM ADAMS 519                                                                              
02/08/22       (H)       Heard & Held                                                                                           
02/08/22       (H)       MINUTE(ENE)                                                                                            
02/10/22       (H)       ENE AT 10:15 AM ADAMS 519                                                                              
02/10/22       (H)       Heard & Held                                                                                           
02/10/22       (H)       MINUTE(ENE)                                                                                            
02/15/22       (H)       ENE AT 10:15 AM ADAMS 519                                                                              
02/15/22       (H)       Heard & Held                                                                                           
02/15/22       (H)       MINUTE(ENE)                                                                                            
03/01/22       (H)       ENE AT 10:15 AM ADAMS 519                                                                              
03/01/22       (H)       Moved HB 299 Out of Committee                                                                          
03/01/22       (H)       MINUTE(ENE)                                                                                            
03/02/22       (H)       ENE RPT 4DP 2NR                                                                                        
03/02/22       (H)       DP: KAUFMAN, TUCK, RAUSCHER, SCHRAGE                                                                   
03/02/22       (H)       NR: ZULKOSKY, CLAMAN                                                                                   
03/11/22       (H)       RES AT 1:00 PM BARNES 124                                                                              
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
CHRISTINA CARPENTER, Director                                                                                                   
Division of Environmental Health                                                                                                
Department of Environmental Conservation                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Introduced HB 299 on behalf of the sponsor,                                                              
House Rules by request of the governor.                                                                                         
                                                                                                                                
GWEN HOLDMANN, Director                                                                                                         
Alaska Center for Energy and Power                                                                                              
University of Alaska Fairbanks                                                                                                  
Fairbanks, Alaska                                                                                                               
POSITION STATEMENT:  During the hearing on HB 299, provided a                                                                 
PowerPoint presentation titled, "Small Scale Nuclear Power an                                                                   
option for Alaska?"                                                                                                             
                                                                                                                                
ASHLEY FINAN, PhD, Director                                                                                                     
National Reactor Innovation Center                                                                                              
Idaho National Laboratory                                                                                                       
Victor, Idaho                                                                                                                   
POSITION STATEMENT:  During the hearing on HB 299, answered                                                                   
questions.                                                                                                                      
                                                                                                                                
CARRIE HARRIS                                                                                                                   
Anchor Point, Alaska                                                                                                            
POSITION STATEMENT:  During the  hearing on HB 299, expressed her                                                             
concern about nuclear waste.                                                                                                    
                                                                                                                                
MICHAEL ROVITO, Deputy Director                                                                                                 
Alaska Power Association                                                                                                        
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Testified in support of HB 299.                                                                          
                                                                                                                                
JEREMIAH HAMRICK                                                                                                                
Wasilla, Alaska                                                                                                                 
POSITION STATEMENT:  During the  hearing on HB 299, expressed his                                                             
concern about nuclear waste.                                                                                                    
                                                                                                                                
MARGARET TARRANT, Environmental Justice Organizer                                                                               
Alaska Community Action on Toxics                                                                                               
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Testified in opposition to HB 299.                                                                       
                                                                                                                                
LISA HOLLEN                                                                                                                     
Union of Concerned Scientists                                                                                                   
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  During the  hearing on HB 299, expressed her                                                             
concerns with nuclear power.                                                                                                    
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
1:02:25 PM                                                                                                                    
                                                                                                                                
CHAIR  JOSIAH  PATKOTAK  called   the  House  Resources  Standing                                                             
Committee  meeting  to  order  at   1:02  p.m.    Representatives                                                               
Schrage,   Gillham,    Rauscher,   Hopkins,   and    McKay   (via                                                               
teleconference), and Patkotak were present  at the call to order.                                                               
Representative Hannan arrived as the meeting was in progress.                                                                   
                                                                                                                                
            HJR 34-NAT'L PETROLEUM RESERVE IN ALASKA                                                                        
                                                                                                                                
1:03:02 PM                                                                                                                    
                                                                                                                                
CHAIR PATKOTAK announced  that the first order  of business would                                                               
be HOUSE JOINT RESOLUTION NO.  34, Supporting oil and gas leasing                                                               
and development within the National Petroleum Reserve in Alaska.                                                                
                                                                                                                                
1:03:58 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE RAUSCHER complimented  the resolution's intent and                                                               
offered his support for its passage.                                                                                            
                                                                                                                                
1:04:26 PM                                                                                                                    
                                                                                                                                
CHAIR PATKOTAK thanked everyone for  their good discussion of the                                                               
resolution.                                                                                                                     
                                                                                                                                
1:05:01 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HOPKINS  moved to report  HJR 34 out  of committee                                                               
with  individual  recommendations  and  the  accompanying  [zero]                                                               
fiscal note.   There being no objection, HJR 34  was reported out                                                               
of the House Resources Standing Committee.                                                                                      
                                                                                                                                
1:05:25 PM                                                                                                                    
                                                                                                                                
The committee took a brief at-ease.                                                                                             
                                                                                                                                
                      HB 299-MICROREACTORS                                                                                  
                                                                                                                                
1:07:36 PM                                                                                                                    
                                                                                                                                
CHAIR PATKOTAK announced  that the final order  of business would                                                               
be HOUSE  BILL NO. 299, "An  Act relating to microreactors."   He                                                               
noted that the bill is by request of the governor.                                                                              
                                                                                                                                
1:08:14 PM                                                                                                                    
                                                                                                                                
CHRISTINA CARPENTER, Director,  Division of Environmental Health,                                                               
Department  of Environmental  Conservation  (DEC), introduced  HB
299  on behalf  of the  sponsor, House  Rules by  request of  the                                                               
governor.   She explained  that the  bill defines  a microreactor                                                               
according   to   a   federal    definition   contained   in   the                                                               
Infrastructure Investment and Jobs Act.   The bill also creates a                                                               
carve-out  from   the  ongoing   study  and   legislative  siting                                                               
requirements that are  currently in statute.   The existing study                                                               
requirement involves  six state  departments and was  designed to                                                               
analyze the operation of massive  legacy reactors.  She said [the                                                               
administration] believes  that the  Alaska Center for  Energy and                                                               
Power  (ACEP),  along  with the  National  Laboratories,  is  the                                                               
appropriate  place  for  these  studies.   This  issue  has  been                                                               
studied by ACEP  for over 10 years and ACEP  is committed to work                                                               
with DEC on a microreactor road map for Alaska.                                                                                 
                                                                                                                                
MS. CARPENTER noted that currently  there are no microreactors in                                                               
Alaska and  the timeframe for  microreactors coming to  market is                                                               
estimated at  five to seven  years.  These  [proposed] exemptions                                                               
will allow microreactors to be  situated without the necessity of                                                               
legislative  approval for  lands, reducing  the burden  on atomic                                                               
industrial   development.     The  existing   legislative  siting                                                               
requirements  reflect the  statewide nature  of a  legacy reactor                                                               
while a microreactor  is really a local issue.   A legacy reactor                                                               
has a  50-mile emergency planning zone,  whereas a microreactor's                                                               
emergency  planning zone  ends at  the  reactor facility's  door.                                                               
The bill does not renew  the requirement that municipalities must                                                               
approve of the DEC siting permit.                                                                                               
                                                                                                                                
MS.  CARPENTER related  that HB  299  is supported  by the  clean                                                               
energy  industry and  a  diverse group  of  stakeholders such  as                                                               
Copper Valley  Electric Authority,  clean energy  nonprofits like                                                               
Clear Path Action, and the Alaska  Center for Energy and Power in                                                               
Fairbanks.    This list  is  expected  to  grow as  Alaskans  are                                                               
engaged in the weeks ahead.                                                                                                     
                                                                                                                                
1:10:39 PM                                                                                                                    
                                                                                                                                
MS. CARPENTER provided a sectional analysis  of HB 299.  She said                                                               
Section  1  removes  the  requirement  for  microreactors  to  be                                                               
situated  on legislatively  designated land.   Section  2 exempts                                                               
state departments  and agencies  from the requirement  to conduct                                                               
studies   concerning  changes   in   laws   and  regulation   for                                                               
microreactors  only.    Section  3  provides  the  definition  of                                                               
microreactor.                                                                                                                   
                                                                                                                                
1:11:29 PM                                                                                                                    
                                                                                                                                
GWEN  HOLDMANN,  Director, Alaska  Center  for  Energy and  Power                                                               
(ACEP),  University   of  Alaska  Fairbanks  (UAF),   provided  a                                                               
PowerPoint  presentation titled  "Small  Scale  Nuclear Power  an                                                               
option for  Alaska?"  She  turned to the second  slide, "National                                                               
Lab Technical  Experts," and  acknowledged the  collaborators who                                                               
have  made themselves  available to  answer technical  questions.                                                               
She proceeded  to the  third slide, "Alaska  Center for  Energy &                                                               
Power  (ACEP)," and  explained  that ACEP  is  an applied  energy                                                               
research center that looks at  the options for current and future                                                               
energy   solutions  for   Alaska   communities  and   industries.                                                               
Microreactors are an  example of the technology and  a topic that                                                               
ACEP has  been tracking for over  10 years at the  request of the                                                               
legislature.                                                                                                                    
                                                                                                                                
MS.  HOLDMANN moved  to  the fourth  slide,  "ACEP Small  Nuclear                                                               
Reports    2011 &  2021 'Small Modular  Nuclear Power:  an option                                                               
for Alaska?'"   She  recounted that ACEP  was initially  asked to                                                               
look at this in 2010/2011, for  which ACEP produced a report that                                                               
included information on historically  proposed projects.  At that                                                               
time  not many  smaller  reactors were  available  that would  be                                                               
suitable  for  use  in  Alaska.   Today,  however,  many  smaller                                                               
reactors that would be better  suited for the Alaskan environment                                                               
are moving closer to commercialization.                                                                                         
                                                                                                                                
MS. HOLDMANN displayed the fifth  slide, "2021: Updated Report to                                                               
Legislature 'Small  Scale Nuclear Power: an  option for Alaska?'"                                                               
She said  ACEP's 2021 report  made very  specific recommendations                                                               
for  moving forward  in this  area, one  of which  was to  change                                                               
state statutes.   This bill  closely follows  the recommendations                                                               
that ACEP  made in  its 2021  report, which  was prepared  at the                                                               
request of the legislature.                                                                                                     
                                                                                                                                
1:14:44 PM                                                                                                                    
                                                                                                                                
MS.  HOLDMANN explained  that HB  299 defines  a microreactor  in                                                               
statute  according to  federal  definitions  consistent with  the                                                               
Infrastructure  Investment and  Jobs Act,  which means  a reactor                                                               
that produces no  more than 50 megawatts (MWe)  of electric power                                                               
and  meets  the  standards  of an  advanced  nuclear  reactor  as                                                               
defined in federal  code.  Secondly, HB 299  creates an exemption                                                               
for  microreactors from  the requirements  of legislative  siting                                                               
approval for  each individual project  because this is more  of a                                                               
local  issue   than  something  that  could   impact  the  state.                                                               
Thirdly,  the bill  creates an  exemption for  microreactors from                                                               
the requirements  of continuous [state] department  studies for a                                                               
project once initial permitting is completed.                                                                                   
                                                                                                                                
MS. HOLDMANN  discussed what HB  299 does not  do.  She  said the                                                               
bill  does not  exempt  micro nuclear  reactors  (MNRs) from  any                                                               
normal  permitting and  licensing  requirements at  the state  or                                                               
national level.   At the  national level the lead  federal agency                                                               
is  the Nuclear  Regulatory  Commission (NRC)  which  has a  very                                                               
robust  licensing  process  on   the  technology  side  and  site                                                               
licensing for  any individual  reactor.  At  the state  level the                                                               
lead permitting  agency is DEC.   An NRC license is  always going                                                               
to be a prerequisite for any  project that is completed in Alaska                                                               
or  anywhere in  the US,  but it's  not the  only requirement  to                                                               
build a  nuclear power  plant.   A developer  would also  have to                                                               
meet  any state  requirements  and  complete state  environmental                                                               
reviews before construction or operation.   This bill does not in                                                               
any way impact that process,  it only removes the requirement for                                                               
ongoing continuous  studies after the project  has been developed                                                               
beyond those required for normal permitting compliance.                                                                         
                                                                                                                                
1:16:57 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   RAUSCHER  asked   whether  he   is  correct   in                                                               
understanding that HB 299 would  get rid of some bureaucratic red                                                               
tape that is not needed.                                                                                                        
                                                                                                                                
MS. HOLDMANN replied that that is correct.                                                                                      
                                                                                                                                
REPRESENTATIVE  RAUSCHER   posed  a  scenario  of   purchasing  a                                                               
microreactor  and  putting it  in  Sutton.    He asked  how  many                                                               
permits  would be  left  for him  to "climb  over"  to make  that                                                               
happen.                                                                                                                         
                                                                                                                                
MS.  HOLDMANN responded  that from  the national  perspective the                                                               
NRC has a  robust and extensive permitting process.   She offered                                                               
to  provide  a  list  of  those national  level  permits  to  the                                                               
committee if members  would like.  She said  her understanding at                                                               
the  state level  is  that DEC  is  going to  need  to develop  a                                                               
process as part of a road map,  which APEC hopes to work with DEC                                                               
in   developing,   for   exactly  what   all   those   permitting                                                               
requirements will  look like.   She deferred to Ms.  Carpenter to                                                               
answer further.                                                                                                                 
                                                                                                                                
MS.  CARPENTER confirmed  that in  the  future DEC  will need  to                                                               
develop  regulations  specific  to siting  requirements.    Since                                                               
there are no  microreactors in the state, she  explained, DEC has                                                               
not done that.   In those regulations DEC  would put requirements                                                               
about minimum  setbacks from water  or other properties.   If air                                                               
or  water  permits  were  also required,  DEC  would  have  those                                                               
requirements as well.                                                                                                           
                                                                                                                                
1:19:26 PM                                                                                                                    
                                                                                                                                
CHAIR PATKOTAK  inquired about the  relevance of  Project Chariot                                                               
to today's discussion.                                                                                                          
                                                                                                                                
MS. CARPENTER answered that there  is very little relevance.  She                                                               
said  Project  Chariot  creates  concerns  about  the  safety  of                                                               
nuclear  energy  as  an energy  resource,  especially  in  remote                                                               
locations.   However,  she continued,  the modern  nuclear energy                                                               
system  or microreactor  that is  currently  being discussed  for                                                               
future deployment is quite different  from the legacy that is had                                                               
in the state around nuclear testing and development.                                                                            
                                                                                                                                
CHAIR PATKOTAK  stated that Project  Chariot was  a weapons-based                                                               
test versus today's power generation through microreactors.                                                                     
                                                                                                                                
1:20:46 PM                                                                                                                    
                                                                                                                                
MS. HOLDMANN  resumed her presentation.   She reviewed  the sixth                                                               
slide,  "A few  facts  about nuclear  energy...",  which read  as                                                               
follows [original punctuation provided]:                                                                                        
                                                                                                                                
     • Nuclear energy supplies 20  [percent]  of the  U.S.                                                                      
        electric power needs, more than all renewable                                                                           
        resources combined (including hydro)                                                                                    
     • The U.S. produces more nuclear energy than any other                                                                     
        country in the world                                                                                                    
     • In the 60-year history of the nuclear power industry                                                                     
        in 36 countries, there have only been 3 significant                                                                     
        accidents at nuclear power plants.                                                                                      
     • With the exception of Chernobyl, no nuclear workers                                                                      
        or members of the public have ever died as a result                                                                     
        of radiation exposure due to a commercial nuclear                                                                       
        reactor accident (including Fukushima Daiichi)                                                                          
                                                                                                                                
MS.  HOLDMANN  added  that  ACEP   strives  to  provide  accurate                                                               
information to  Alaskans about  different technologies.   Because                                                               
nuclear energy  can be used  as a  weapon there is  an additional                                                               
concern  about   what  the   potential  implications   could  be.                                                               
However, nuclear energy has an  excellent safety record, and this                                                               
is just for  conventional nuclear reactors not  advanced or micro                                                               
nuclear reactors.                                                                                                               
                                                                                                                                
MS.  HOLDMANN   continued  to  the   seventh  slide,   "What  are                                                               
Microreactors?",  which  read  as follows  [original  punctuation                                                               
provided with some formatting changes]:                                                                                         
                                                                                                                                
     Microreactors are  an emerging class of  small advanced                                                                    
     reactors with the following general attributes:                                                                            
                                                                                                                                
     • Output of 1 to 10's of MWe                                                                                               
     • Capable  of   load   following   and   non-electric                                                                      
        applications (e.g., process heat)                                                                                       
     • Factory fabricated and  transportable nearly  fully                                                                      
       assembled. Requires a small operational footprint.                                                                       
     • Employs passively safe operating and fuel designs                                                                        
     • Semi-autonomous control system/minimum on-site staff                                                                     
     • Long intervals without refueling (e.g., 10 years)                                                                        
                                                                                                                                
MS.  HOLDMANN noted  that  the  50 MWe  threshold  in  HB 299  is                                                               
consistent with  definitions at  the federal  level.   The reason                                                               
for that, she explained, is that  it is an arbitrary threshold of                                                               
which all the  advanced reactors that are being  developed in the                                                               
micro  category  fall  well  below.     Unlike  legacy  reactors,                                                               
microreactors are more like a  thermal battery, a nuclear battery                                                               
that would be  deployed as a system that provides  heat, and that                                                               
heat  is  then  used  to   drive  conventional  power  generation                                                               
systems, one example being steam turbines.                                                                                      
                                                                                                                                
1:25:21 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SCHRAGE asked whether  the 50 MWe limitation would                                                               
prohibit  microreactors from  being  placed in  series with  each                                                               
other and  combined to create a  larger plant made up  of several                                                               
microreactors.                                                                                                                  
                                                                                                                                
MS. HOLDMANN replied that that  strategy is being considered very                                                               
significantly  for  microreactors.   These  microreactor  designs                                                               
compliment a modular  reactor, which is designed  to replace many                                                               
of the  legacy nuclear plants  in the US.   They are  deployed in                                                               
parallel  to one  another  within a  single  powerplant within  a                                                               
single  footprint.   The  idea  is  that  there is  less  nuclear                                                               
material in any one  place in a single reactor.   For a site that                                                               
requires  more  than,  say,  5  or  10  MWe  of  electric  power,                                                               
microreactors  could  be  installed  in  parallel  and  meet  the                                                               
overall load that is trying to be accomplished for that site.                                                                   
                                                                                                                                
1:26:46 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  RAUSCHER  asked  how   much  distance  is  needed                                                               
between the microreactor units.                                                                                                 
                                                                                                                                
MS.  HOLDMANN responded  that there  is no  precise answer.   She                                                               
explained that  many of these  reactors are  designed to be  in a                                                               
large, containerized  solution where they are  installed close to                                                               
one another.  Some of  the manufacturers envision having two bays                                                               
next to  each other so  when the fuel in  one of the  reactors is                                                               
expended it can  be pulled out.  Because the  expended fuel needs                                                               
to be  cooled for 60 days,  the second reactor can  be brought on                                                               
and there would be no interruption.                                                                                             
                                                                                                                                
1:28:23 PM                                                                                                                    
                                                                                                                                
MS. HOLDMANN displayed the eighth  slide, "Small Nuclear Reactors                                                               
(under development  in U.S.,  <300 MWe)."   She said  the graphic                                                               
shows  the  different  reactor technologies  that  are  currently                                                               
under development for the US market.   These are systems that are                                                               
planning to, or are currently,  working through the NRC licensing                                                               
process.  The cluster at the  bottom left of the slide represents                                                               
the microreactors that  are under development for  the US market.                                                               
Modular reactors are  shown on the top half of  the graphic; they                                                               
are larger  than 50 MWe  which, in general,  is a little  bit too                                                               
big for the loads in Alaska.                                                                                                    
                                                                                                                                
MS.  HOLDMANN   proceeded  to  slide   9,  "Example   MNRs  under                                                               
development."   She related that  Ultra Safe  Nuclear Corporation                                                               
is  currently working  on  a feasibility  study  with the  Copper                                                               
Valley  Electric Association.   The  design  is around  a 10  MWe                                                               
electric threshold  with the reactor  installed below  ground and                                                               
the  remaining   equipment  above   ground.     Westinghouse  has                                                               
expressed interest in the Alaska  market with its eVinci reactor.                                                               
This  smaller,  more  compact design  has  a  two-bay  deployment                                                               
strategy  and would  be  deployed above  ground  in an  oversized                                                               
conex-type   container   along   with  three   additional   conex                                                               
containers  with  the  ancillary  equipment  required  for  power                                                               
generation.                                                                                                                     
                                                                                                                                
MS.  HOLDMANN  discussed  the tenth  slide,  "What  Does  Passive                                                               
Safety Mean?"   The slide  read as follows  [original punctuation                                                               
provided]:                                                                                                                      
                                                                                                                                
     Fuel/fuel configuration                                                                                                    
     New fuel  configurations such as  TRISO [tri-structural                                                                    
     isotropic] particles  cannot melt in a  reactor and can                                                                  
     withstand  extreme temperatures  and stresses  that are                                                                    
     well beyond the threshold of current nuclear fuels.                                                                        
                                                                                                                                
     Passive Cooling                                                                                                            
     Advanced  reactors do  not  require  active systems  to                                                                  
     cool the  fuel in an  emergency.  Instead they  rely on                                                                  
     passive  safety   features  which  require   no  active                                                                    
     controls   or   operational   intervention   to   avoid                                                                    
     accidents  in the  event  of  malfunction, and  instead                                                                    
     rely on  gravity, natural convection, or  resistance to                                                                    
     high temperatures (or a combination thereof)                                                                               
                                                                                                                                
                                                                                                                                
1:33:41 PM                                                                                                                    
                                                                                                                                
MS.  HOLDMANN continued  to the  eleventh slide,  "Question: What                                                             
does  TAPS [Trans  Alaska Pipeline  System] have  in common  with                                                               
micro  reactor  technologies?"    She  explained  that  the  TAPS                                                               
pipeline uses  a heat  pipe to  remove or  extract heat  from the                                                               
ground  to keep  the  ground  frozen, with  ammonia  used as  the                                                               
working fluid.  It is a  passive process that doesn't require any                                                               
pumps or electric  power to operate.  It is  a perfect example of                                                               
the  type  of strategy  that  is  being  used  by some  of  these                                                               
microreactor technologies  to remove  heat from the  reactor core                                                               
and then use that heat for various purposes.                                                                                    
                                                                                                                                
MS.  HOLDMANN  moved  to  the   twelfth  and  thirteenth  slides,                                                               
"Question:  What do  micro reactor  technologies  have in  common                                                             
with the automobile industry?"  She  said the answer is that both                                                               
are  built  to  factory  specifications   and  tolerances.    The                                                               
thirteenth  slide  depicts  a NuScale  Power  Reactor  where  the                                                               
reactors are installed  in series, in parallel,  with one another                                                               
in a compact  footprint.  This is more of  a modular reactor than                                                               
a microreactor,  she added, and  a modular reactor  would replace                                                               
the legacy reactors that are in the rest of the US.                                                                             
                                                                                                                                
MS.  HOLDMANN  addressed  the fourteenth  and  fifteenth  slides,                                                               
"Question:  What do  micro reactor  technologies  have in  common                                                             
[with]  diesel generators?"   She  explained that  microreactors,                                                               
unlike legacy  reactors, can load  to follow.   Microreactors can                                                               
complement  renewables  by following  the  output  of a  variable                                                               
renewable energy  system like  wind or solar  and firming  up the                                                               
output, or by  following the load where there is  daily or hourly                                                               
variation in  the load.   Microreactors are  better suited  to be                                                               
able to  meet that changing demand  than a legacy reactor.   This                                                               
is needed  in Alaska because Alaska  has such a small  market and                                                               
has challenges with integrating  variable renewables and variable                                                               
loads on grids.                                                                                                                 
                                                                                                                                
1:36:57 PM                                                                                                                    
                                                                                                                                
MS.  HOLDMANN  spoke to  the  sixteenth  and seventeenth  slides,                                                               
"State  Statutes  Relates  to  Nuclear  Energy,"  which  read  as                                                               
follows [original punctuation provided]:                                                                                        
                                                                                                                                
     • Sec. 18.45.020 Requires an applicant to follow the                                                                       
        NRC regulations;                                                                                                        
    • Sec. 18.45.025 Requires DEC to provide permission to                                                                      
        a nuclear developer, the state assembly to designate                                                                    
        by law  any land  that  would be  used,  and DEC  to                                                                    
        promulgate  regulations  for  this   section.  If  a                                                                    
        municipality  has  jurisdiction  over  the  proposed                                                                    
        site, its approval is also required.                                                                                    
      • Sec. 18.45.027 Pertains to nuclear waste. If the                                                                        
        fuel has been used for a period of time, this                                                                           
        statute might restrict the reactor containing                                                                           
        partially used fuel from being moved in state for                                                                       
        further use.                                                                                                            
     • Sec. 18.45.030 is an authorization of exhaustive/                                                                        
        continuing studies of nuclear development related                                                                       
        risks by DH&SS, DOL, DOT, DCCED, DF&G, DNR and other                                                                    
        State agencies.                                                                                                         
     • Sec. 18.45.040 relates to judicial enforcement of                                                                        
        the law via governor required processes.                                                                                
    • Sec. 18.45.070 allows coordination with the federal                                                                       
        government.                                                                                                             
      • Sec. 18.45.090 is an exemption related to mining                                                                        
        uranium                                                                                                                 
     • Sec. 18.45.900 is filled with definitions.                                                                               
                                                                                                                                
MS. HOLDMANN, speaking  to the sixteenth slide,  stated that ACEP                                                               
has looked at all the  Alaska statutes related to nuclear energy,                                                               
some of  which ACEP  did not  recommend changing.   One  of those                                                               
statutes, for  example, is AS 18.45.027  which currently provides                                                               
that any radioactive material in the  state can only be moved for                                                               
the purpose  of moving it  outside of  the state.   She specified                                                               
that no  changes were  recommended to  this statute  because ACEP                                                               
doesn't foresee any  possibility that that might  become an issue                                                               
in the near future.                                                                                                             
                                                                                                                                
MS.  HOLDMANN,  speaking  to the  seventeenth  slide,  said  ACEP                                                               
recommended  making changes  to three  statutes [Sec.  18.45.025,                                                               
Sec. 18.45.030, Sec.  18.45.900] and these are  the statutes that                                                               
are addressed in HB 299.                                                                                                        
                                                                                                                                
MS.  HOLDMANN  addressed  the  eighteenth  slide,  "Question:  Do                                                               
microreactors have  a role in  Alaska's future energy mix?"   She                                                               
said  ACEP has  continued to  do  studies and  research on  this,                                                               
including  looking at  the economics.   She  added that  ACEP has                                                               
also  worked  closely with  the  University  of Alaska  Anchorage                                                               
Center  for  Economic  Development,  which prepared  a  Use  Case                                                               
Analysis.  She  displayed the nineteenth slide and  said the four                                                               
photographs,   labeled    "Rural   Hub    Community,"   "Railbelt                                                               
Application," "Military  base (e.g.,  Eielson AFB),"  and "Mining                                                               
Operations (E.g.,  Red Dog Mine),"  represent the four  use cases                                                               
that were looked at by the Center for Economic Development.                                                                     
                                                                                                                                
1:40:33 PM                                                                                                                    
                                                                                                                                
MS. HOLDMANN  moved to  the twentieth slide  and stated  that the                                                               
map depicts  the Alaska communities  that might be big  enough to                                                               
host  a microreactor  [Kotzebue (4  MW), Nome  (9 MW),  Galena (1                                                               
MW), Fairbanks  (223 MW), Tok  (2 MW), Bethel (7  MW), Dillingham                                                               
(3  MW),  Naknek  (8  MW),  Anchorage  (662  MW)].    Galena  was                                                               
included,  she  explained, because  about  a  decade ago  it  was                                                               
considered as a host for  a microreactor.  Today, however, Galena                                                               
would be too small to be considered a viable site.                                                                              
                                                                                                                                
MS. HOLDMANN discussed the  twenty-first slide, "National Reactor                                                               
Innovation Center (Idaho National  Laboratory)."  She shared that                                                               
ACEP  has  been  working  with the  National  Reactor  Innovation                                                               
Center (NRIC) on  developing a road map for the  state of Alaska,                                                               
along with DEC,  Alaska Energy Authority (AEA), and  others.  She                                                               
said  a look  is being  taken at  the questions  that need  to be                                                               
answered and a pathway for  deploying nuclear energy technologies                                                               
in  Alaska.   At this  point in  time, no  advanced microreactors                                                               
have been deployed in situ,  but several projects are expected to                                                               
happen in the next five years,  many of those taking place at the                                                               
Idaho National Laboratory.                                                                                                      
                                                                                                                                
1:42:26 PM                                                                                                                    
                                                                                                                                
MS. HOLDMANN reviewed the  twenty-second and twenty-third slides,                                                               
"Eielson AF Microreactor Pilot,"  which read as follows [original                                                               
punctuation provided]:                                                                                                          
                                                                                                                                
       • 2019 National Defense Authorization Act (NDAA)                                                                         
        required the DoD [Department of Defense] to seek to                                                                     
        develop a pilot program for the development of at                                                                       
        least one micro-reactor by December 2027.                                                                               
     • Managed through the Office of the Deputy Assistant                                                                       
        Secretary of the Air Force for Environment Safety                                                                       
        and Infrastructure (SAF/IEE, Mark Correll)                                                                              
     • 1-5MWe                                                                                                                   
      • Will not be grid connected onsite heat and power                                                                        
        only                                                                                                                    
     • Will be licensed by the NRC; subject to state regs                                                                       
    • Privately owned/operated through PPA [power purchase                                                                      
        agreement] with USAF [US Air Force]                                                                                     
                                                                                                                                
     Proposed Timeline                                                                                                          
      • February/March 2022 RFP [request for proposals]                                                                         
        released                                                                                                                
     • Vender selected late 2022                                                                                                
     • 2022-23 Permitting and licensing                                                                                         
     • 2025 begin construction                                                                                                  
     • 2027 Commercial operation                                                                                                
                                                                                                                                
MS.  HOLDMANN   turned  to   the  twenty-fourth   slide,  "Alaska                                                               
Roadmap," and said the schematic  depicts the way of thinking for                                                               
deployment of nuclear energy.   The first question is whether the                                                               
technology exists.   If the technology exists,  the next question                                                               
is whether  it is  safe.   If it  is safe,  the next  question is                                                               
whether it  is a responsible  technology to deploy in  the Alaska                                                               
environment.  The last question  is whether it is cost effective.                                                               
She  said ACEP  believes that  these  four questions  need to  be                                                               
answered  in  order  to understand  the  possible  landscape  for                                                               
deploying microreactors in Alaska.                                                                                              
                                                                                                                                
1:44:42 PM                                                                                                                    
                                                                                                                                
MS.  HOLDMANN concluded  her presentation  with the  twenty-fifth                                                               
slide, "Why  I am  interested in small  reactors:" which  read as                                                               
follows [original punctuation provided]:                                                                                        
                                                                                                                                
     • Provide baseload energy  heat and power                                                                                  
     • Can load follow                                                                                                          
     • Carbon free                                                                                                              
     • Safer?                                                                                                                   
     • Competitive Pricing?                                                                                                     
     • Better long-term certainty of energy costs?                                                                              
     • Reduced risk of environmental contamination?                                                                             
     • Possible complement to existing AK resource mix                                                                          
                                                                                                                                
MS.  HOLDMANN   added  that  her  background   is  in  mechanical                                                               
engineering and  physics.  She  said she doesn't have  a specific                                                               
background related to  nuclear energy, but she  has been involved                                                               
with a lot of developments in the  state of Alaska and has a real                                                               
background in thermal energy systems.   She has become personally                                                               
interested in  the potential that  microreactors have  for Alaska                                                               
because she thinks  they can provide baseload energy  in the form                                                               
of  heat and  power.    She pointed  out  that  while she  thinks                                                               
microreactors  are  safer  it  must   be  ensured  that  Alaskans                                                               
understand what that means, which  is something ACEP is hoping to                                                               
do.   When  considering  competitive pricing,  she  said ACEP  is                                                               
interested in understanding what the  value of the thermal energy                                                               
is, not just the electric power.   Ms. Holdmann noted that better                                                               
long-term  certainty  of energy  costs  mostly  applies to  rural                                                               
areas that must import diesel  fuel over long shipping routes and                                                               
over which there is little  control over market price.  Regarding                                                               
reduced  risk of  environmental  contamination,  she stated  that                                                               
while new  technology can sometimes  be scary,  the environmental                                                               
footprint of current technology must  also be considered, such as                                                               
the  transportation   of  diesel  fuel  across   Alaska  and  the                                                               
contamination often related to that.   She closed by stating that                                                               
microreactors  could  complement  the existing  resource  mix  in                                                               
Alaska, thereby  allowing for more resilient  and reliable energy                                                               
systems in the state.                                                                                                           
                                                                                                                                
1:48:19 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  HOPKINS inquired  about  how microreactors  could                                                               
work within  mining opportunities as  well as development  on the                                                               
North Slope to support a power  supply with lower carbon and less                                                               
environmental contamination.                                                                                                    
                                                                                                                                
MS. HOLDMANN  replied that ACEP has  talked with the oil  and gas                                                               
and the  mining industries.   Both  industries are  interested in                                                               
how to  reduce their  carbon footprint  and see  microreactors as                                                               
having  a  potential  role there.    Because  microreactors  have                                                               
process heat  potential they  might be  able to  offer additional                                                               
opportunities  for refining  and processing  materials onsite  so                                                               
that  a  higher value  product  could  be exported  from  Alaska.                                                               
Mines come  in all sizes, but  many of them would  need dozens of                                                               
megawatts.   A potential environmental  impact related  to mining                                                               
is the  importing of fuel and  the potential impacts of  fuel oil                                                               
spills.   Microreactors would be  a good alternative  because the                                                               
chances of  environmental contamination for the  power generation                                                               
side  of a  mining operation  would be  significantly lower  than                                                               
standard diesel generation technologies.                                                                                        
                                                                                                                                
1:50:56 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SCHRAGE  inquired about utilizing the  heat coming                                                               
from microreactors  to create other  energy sources.   He offered                                                               
his understanding  that during times  of less  electrical demand,                                                               
things could be scaled over to  heat for use in hydrogen cracking                                                               
or storage opportunities so as to not waste that energy.                                                                        
                                                                                                                                
MS. HOLDMANN confirmed that new  opportunities are opened because                                                               
microreactor  systems  provide  high  temperature  process  heat.                                                               
This process  heat could  be used  for industrial  processes that                                                               
currently  use  carbon  intensive energies,  including  producing                                                               
hydrogen  or ammonia.    The flexibility  of  these systems  does                                                               
allow switching from  one application to another,  and ACEP wants                                                               
to  work with  its  National Lab  partners  in understanding  the                                                               
economics  of  these  different  use cases,  which  many  of  the                                                               
vendors say  is technically feasible.   In the context  of Alaska                                                               
use cases, ACEP would like  to better understand the economics of                                                               
toggling back and  forth between different use  cases and ramping                                                               
up and down output of a reactor.                                                                                                
                                                                                                                                
1:53:50 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HANNAN drew attention  to the twenty-fourth slide,                                                               
"Alaska Roadmap."   She  asked whether  the vendors  mentioned in                                                               
previous slides have been licensed.                                                                                             
                                                                                                                                
MS. HOLDMANN answered  that to date no reactor  vendors have gone                                                               
completely through the  NRC licensing process, and  none have yet                                                               
been deployed  in the US.   Several vendors are well  along their                                                               
way in planning deployments in the  next few years and that would                                                               
include going through the NRC licensing process.                                                                                
                                                                                                                                
REPRESENTATIVE HANNAN  surmised the  Alaska State  Legislature is                                                               
looking at this  because of Eielson having a pilot  project.  She                                                               
asked  whether Eielson  is  the first  project  anywhere for  the                                                               
Department of Defense  and whether the DoD would  then be looking                                                               
at the first vendor to get NRC approval.                                                                                        
                                                                                                                                
MS.  HOLDMANN replied  that HB  299 has  nothing to  do with  the                                                               
Eielson  project.   "The Eielson  project ?  has something  to do                                                               
with it,"  she continued, "but  it wasn't  ? spurred by  the fact                                                               
that this Eielson  project has been proposed.   This is something                                                               
that we think is important because  ? if Alaska wants to consider                                                               
microreactors   ?  this   cleanup   of   state  statute   enables                                                               
communities  or industry  to  make  decisions around  considering                                                               
nuclear reactors  as part of  their future energy mix."   Changes                                                               
to statutes  were suggested  by ACEP  before the  Eielson project                                                               
was  announced and  before ACEP  knew that  that was  potentially                                                               
going to  happen.  Another project  being done by DoD  is through                                                               
the US Army  for a very small transportable  reactor for advanced                                                               
Army  deployments.    She  offered  her  understanding  that  the                                                               
Eielson project will  be the first commercial  project, the first                                                               
power purchase agreement,  engaged in by DoD  for a microreactor.                                                               
In that process,  a funding opportunity announcement  will be put                                                               
out on the streets and bids  for the project would include a plan                                                               
for licensing.   Most likely it  will be a combined  license that                                                               
covers both  the technology and  site license  requirements under                                                               
NRC.   That  will  happen in  parallel to  the  process of  final                                                               
design,  environmental impact  assessments, and  other permitting                                                               
work that needs to be done before ground would be broken.                                                                       
                                                                                                                                
1:55:17 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  HANNAN asked  whether a  bad actor  could turn  a                                                               
microreactor's waste or operations into a dirty bomb.                                                                           
                                                                                                                                
MS.  HOLDMANN  responded that  advanced  fuel  designs, like  the                                                               
TRISO fuel, make it hard to  break apart or to recycle that fuel.                                                               
It would  be very  difficult for someone  to repurpose  that fuel                                                               
for any  purpose other than powering  the reactor.  She  said she                                                               
will get better answers and provide them to the committee.                                                                      
                                                                                                                                
2:00:04 PM                                                                                                                    
                                                                                                                                
ASHLEY FINAN, PhD, Director,  National Reactor Innovation Center,                                                               
Idaho  National Laboratory,  replied that  Ms. Holdmann  answered                                                               
the  question  accurately.    It would  be  very  difficult,  she                                                               
concurred, and the  fuel would not be the  most attractive target                                                               
because there  are many easier  ways to  [to make a  dirty bomb].                                                               
She suggested  there be  follow-up to the  committee with  a more                                                               
thorough response from the lab's experts.                                                                                       
                                                                                                                                
CHAIR PATKOTAK said  the committee looks forward  to getting that                                                               
information.                                                                                                                    
                                                                                                                                
REPRESENTATIVE  HANNAN concurred  with having  the experts  weigh                                                               
in.  She remarked that  Alaska could become attractive because it                                                               
is a remote, isolated, unguarded, and unsecured location.                                                                       
                                                                                                                                
2:02:06 PM                                                                                                                    
                                                                                                                                
CHAIR  PATKOTAK,  regarding  the long-term  certainty  of  energy                                                               
costs for  rural villages, related  that many communities  make a                                                               
one-time purchase of diesel fuel  that lasts for about 14 months.                                                               
Much of  the capital  cost involved with  that, he  continued, is                                                               
having  storage tanks  to fit  sufficiently because  the fuel  is                                                               
used  for  power  generation  as  well  as  heating  homes.    He                                                               
suggested  that maybe  instead  of having  four  diesel tanks  to                                                               
provide  for heat  and power  generation, villages  could have  a                                                               
micro-nuclear reactor and then need  only two diesel tanks.  This                                                               
would be another  layer to helping with energy  costs and capital                                                               
costs for Alaska's smaller villages.                                                                                            
                                                                                                                                
2:03:15 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  HOPKINS  asked  whether district  heat  has  been                                                               
considered.                                                                                                                     
                                                                                                                                
MS. HOLDMANN  confirmed that  district heat  is being  looked at.                                                               
She said there could be a  multi-stage approach of using the high                                                               
temperature   heat  for   industrial  processes   or  for   power                                                               
generation, and  then the  heat that is  expended there  could be                                                               
used for district heating purposes.                                                                                             
                                                                                                                                
2:04:01 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GILLHAM  inquired about  the fuel  particles being                                                               
the size of a poppy seed.                                                                                                       
                                                                                                                                
MS.  HOLDMANN answered  that the  individual fuel  particles that                                                               
are encased  in the high temperature  resistant ceramic materials                                                               
are the size of a poppy seed, not all of the fuel for a reactor.                                                                
                                                                                                                                
REPRESENTATIVE GILLHAM  asked whether a neighborhood  could buy a                                                               
mobile reactor and a conex and then set up its own power.                                                                       
                                                                                                                                
MS.  HOLDMANN replied  that  she can  envision  something in  the                                                               
future  where  microreactors  could  replace  small  rural  power                                                               
generation  systems, but  not in  the near  horizon because  much                                                               
additional work  needs to be  done and systems  further downsized                                                               
for  that to  happen.    She deferred  to  Dr.  Finan to  provide                                                               
further comment.                                                                                                                
                                                                                                                                
DR. FINAN  responded that that  could be possible in  the future.                                                               
Research  and testing  are ongoing  to  develop the  technologies                                                               
that would be  needed to make that possible.   Right now, nuclear                                                               
reactors have human  operators on site, so if  a community wanted                                                               
to purchase  a reactor it  would also  need operators to  run it.                                                               
Some   companies  are   developing  both   business  models   and                                                               
technologies that will allow them  to sell more directly to users                                                               
who  are  not nuclear  operators,  instead  users would  purchase                                                               
nuclear energy  as a  service.  She  concurred with  Ms. Holdmann                                                               
that much  work needs to be  done and said that  that is probably                                                               
not how the initial deployment will be done.                                                                                    
                                                                                                                                
DR. FINAN addressed  the earlier question about  the diversion of                                                               
materials.   She clarified that  these would not be  unguarded or                                                               
unsecured, and that currently there  is lots of guarding and lots                                                               
of  security on  nuclear power  plants.   Work is  being done  on                                                               
advanced nuclear  technology to  incorporate more  passive safety                                                               
and  to  incorporate more  passive  security  features that  work                                                               
better in  remote locations,  she continued,  but they  will also                                                               
have active security features.                                                                                                  
                                                                                                                                
2:07:54 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GILLHAM,  in  relation  to  competitive  pricing,                                                               
asked what the cost  would be for a unit that  could power a city                                                               
the size of Bethel.                                                                                                             
                                                                                                                                
MS.  HOLDMANN answered  that ACEP  has been  helping the  vendors                                                               
understand  better the  economics of  deploying these  systems in                                                               
various Alaska  contexts.  The cost  of power in rural  Alaska is                                                               
very  high,  but  not  all  that  cost  is  fuel  cost,  some  is                                                               
operational cost and the aspects of  running a utility in a rural                                                               
setting.  In a recent presentation  a vendor talked about a price                                                               
tag of  around $50 million.   While that sounds high,  it must be                                                               
remembered that that could also  address the thermal energy needs                                                               
of a community.                                                                                                                 
                                                                                                                                
DR. FINAN added that right  now there aren't specific numbers for                                                               
specific technologies  because the  technologies will need  to be                                                               
demonstrated before there can be  confidence in their cost.  Some                                                               
of  the  larger microreactors,  like  50  MWe, are  targeting  to                                                               
compete  with   natural  gas  generators  and   coal  generators.                                                               
Whether they will hit it remains  uncertain until it is done, but                                                               
the companies  are working  towards that price  point.   For much                                                               
smaller  microreactors,  typically  the companies  are  targeting                                                               
being  competitive with  diesel  and other  generators.   Whether                                                               
that can  be hit remains  unknown until it  is done, but  that is                                                               
their  target  and  that  is  what  their  investment  and  their                                                               
investors are placing their bets on.                                                                                            
                                                                                                                                
2:11:32 PM                                                                                                                    
                                                                                                                                
CHAIR PATKOTAK opened public testimony on HB 299.                                                                               
                                                                                                                                
2:12:09 PM                                                                                                                    
                                                                                                                                
CARRIE HARRIS,  agreed there is diesel  contamination but pointed                                                               
out that  diesel contamination does  not have  a 708-million-year                                                               
half-life like  the fuel  for nuclear  reactors.   She maintained                                                               
that these reactors use waste fuel  from the Lower 48.  She asked                                                               
how much  waste fuel will  be stored  to fuel these  reactors and                                                               
whether  there  will be  a  limit.    She further  asked  whether                                                               
storage  facilities  for the  waste  fuel  will be  regulated  or                                                               
whether Alaska  will be a  nuclear waste  dump for the  Lower 48,                                                               
which was tried before.  She  asked who will collect the fees for                                                               
storing the Lower 48's nuclear  waste.  She surmised Alaska would                                                               
be the first state to have  this brand-new technology.  She asked                                                               
whether it  is a red  flag that it  is being developed  in Idaho,                                                               
but Idaho wants to test it on Alaska.                                                                                           
                                                                                                                                
MS. HARRIS disagreed  that Project Chariot was  a weapons testing                                                               
system.  Rather,  it was about blowing [an  artificial] harbor at                                                               
[Cape]  Thompson in  1958,  she continued,  and  the project  was                                                               
stopped.    Regulations  on   these  [microreactors]  are  needed                                                               
because  radiation has  massive spread  through wind,  water, and                                                               
the water table.   She asked why Idaho isn't  saying it wants the                                                               
first  project  if  this  nuclear technology  is  perfect.    She                                                               
requested that answers be given to her questions.                                                                               
                                                                                                                                
2:15:42 PM                                                                                                                    
                                                                                                                                
MICHAEL ROVITO, Deputy Director,  Alaska Power Association (APA),                                                               
testified  in  support  of  HB  299.   He  paraphrased  from  the                                                               
following written statement [original punctuation provided]:                                                                    
                                                                                                                                
     Alaska  Power  Association  (APA) supports  House  Bill                                                                    
     299,  and we  urge its  passage this  year so  electric                                                                    
     utilities  considering  Micro Modular  Reactors  (MMRs)                                                                    
     can  move  forward   with  their  projects  confidently                                                                    
     knowing a  portion of the  permitting process  has been                                                                    
     streamlined.                                                                                                               
                                                                                                                                
     APA  is the  statewide trade  association for  electric                                                                    
     utilities  in Alaska.  Our  members  provide power  for                                                                    
     more  than a  half-million Alaskans  from Utqiagvik  to                                                                    
     Unalaska,  through the  Interior and  Southcentral, and                                                                    
     down the Inside Passage.                                                                                                   
                                                                                                                                
     Our electric utility  members are constantly innovating                                                                    
     and  integrating new  technologies  that support  their                                                                    
     mission  of providing  safe,  reliable, and  affordable                                                                    
     power. MMRs are a viable  source of power that have the                                                                    
     potential  to lower  the cost  of energy  for Alaskans,                                                                    
     decrease  dependency  on  diesel, better  position  our                                                                    
     state  for  economic   development  opportunities,  and                                                                    
     raise Alaska's  profile as a  hub of  energy innovation                                                                    
     and energy independence.                                                                                                   
                                                                                                                                
     It is  important to point  out that  electric utilities                                                                    
     seeking  to  permit MMRs  will  still  have to  satisfy                                                                    
     state  and federal  permitting requirements  before the                                                                    
     projects   can  be   constructed.  HB   299  helps   to                                                                    
     streamline the  process by  exempting MMRs  under 50MWe                                                                    
     from  legislative siting  authority  and from  numerous                                                                    
     required    ongoing   studies    that   could    hamper                                                                    
     development.                                                                                                               
                                                                                                                                
     Alaska's  electric utilities  provide power  amid harsh                                                                    
     conditions,   vast    distances,   and   a    lack   of                                                                    
     interconnection to Lower 48  regional grids. By passing                                                                    
     HB 299, the legislature  will help our state's electric                                                                    
     utilities  more  easily  access  a  viable  option  for                                                                    
     providing reliable  and affordable  power and  light in                                                                    
     the Last Frontier.                                                                                                         
                                                                                                                                
2:17:48 PM                                                                                                                    
                                                                                                                                
JEREMIAH  HAMRICK,  expressed  his   concern  about  the  massive                                                               
problems with nuclear waste.   He said having nuclear waste every                                                               
10 years is  going to be an issue  for the state.  While  it is a                                                               
smaller size, it  is still nuclear power and the  safety of that,                                                               
and  he doesn't  foresee  overcoming the  nuclear waste  problem.                                                               
The people who  are pushing nuclear energy are  going to downplay                                                               
the  safety  hazards  and  the nuclear  waste,  he  charged;  for                                                               
example, there  has been  no discussion  today about  the nuclear                                                               
waste and  having to take care  of that.  Nuclear  power is great                                                               
until it isn't, of which Fukushima  is an example.  Nuclear waste                                                               
can be  disastrous even on  a small scale.   As well,  Alaska has                                                               
many earthquakes.  The people pushing  for this like to say it is                                                               
carbon  neutral,  he  continued,  but they  do  not  mention  the                                                               
nuclear waste that must be dealt  with.  He urged caution on this                                                               
new technology  and said he  doesn't think the technology  is for                                                               
Alaska at this time.                                                                                                            
                                                                                                                                
2:21:00 PM                                                                                                                    
                                                                                                                                
MARGARET   TARRANT,  Environmental   Justice  Organizer,   Alaska                                                               
Community Action on Toxics (ACAT),  testified in opposition to HB
299.    She  paraphrased  from the  following  written  statement                                                               
[original punctuation provided]:                                                                                                
                                                                                                                                
     Alaska  Community   Action  on   Toxics  (ACAT)   is  a                                                                    
     statewide non-profit  environmental health  and justice                                                                    
     research and advocacy  organization based in Anchorage.                                                                    
     We  oppose  HB 299  because  it  allows that  so-called                                                                    
     micronuclear  reactors  are   not  subject  to  certain                                                                    
     nuclear  reactor siting  and permitting  regulations in                                                                    
     Alaska and  may be  constructed "on  land that  has not                                                                    
     been designated by the legislature."                                                                                       
                                                                                                                                
     There  are  serious  health and  safety  concerns  with                                                                    
     micronuclear reactors,  and they  are a  false solution                                                                    
     for our  energy needs  and the climate  crisis. Nuclear                                                                    
     power  is destructive  throughout its  life cycle  from                                                                    
     the mining  of uranium  which is done  predominately on                                                                    
     Indigenous lands through the  enrichment process to the                                                                    
     untenable problems of disposal of radioactive waste.                                                                       
                                                                                                                                
     On  Jan.  6,  2022 the  Nuclear  Regulatory  Commission                                                                    
     determined  that  Oklo  failed  to  provide  sufficient                                                                    
     information on  topics such as potential  accidents and                                                                    
     certain  safety   systems.  Microreactor   vendors  are                                                                    
     pushing   to  reduce   (or  even   eliminate  entirely)                                                                    
     personnel such  as operators and security  officers. In                                                                    
     a  report   about  the   safety  of   advanced  nuclear                                                                    
     reactors,  the  Union  of  Concerned  Scientists  (UCS)                                                                    
     determined  that  leaving   the  microreactors  without                                                                    
     human guards  is not  safe. Even  a very  small reactor                                                                    
     contains  enough radioactive  material to  cause a  big                                                                    
     problem if it is sabotaged,  and none of these reactors                                                                    
     have  demonstrated  they  are  so safe  that  they  can                                                                    
     function  without  operators.   A  single  Oklo  micro-                                                                    
     reactor core  would contain  about 10  nuclear weapons'                                                                    
     worth  of nuclear  and radioactive  material. According                                                                    
     to the UCS report:  "Nuclear technology has fundamental                                                                    
     safety and  security disadvantages compared  with other                                                                    
     low-carbon  (renewable) sources.  Nuclear reactors  and                                                                    
     their  associated facilities  for  fuel production  and                                                                    
     waste   handling   are   vulnerable   to   catastrophic                                                                    
     accidents  and sabotage,  and they  can  be misused  to                                                                    
     produce materials for nuclear weapons."                                                                                    
                                                                                                                                
     It is  disturbing that the  primary proponents  of this                                                                    
     are  representatives from  the  nuclear power  industry                                                                    
     who  have  a  vested  interest.  Opening  the  door  to                                                                    
     nuclear power again in Alaska  is unwise and dangerous.                                                                    
     We  are  still  addressing the  radioactive  legacy  of                                                                    
     massive    radioactive     contamination    from    the                                                                    
     "experimental"  SM1A  nuclear  reactor at  Fort  Greely                                                                    
     that was a colossal failure.  As the Union of Concerned                                                                    
     Scientists  noted  in  their recent  report  evaluating                                                                    
     modern  nuclear  technologies,  including  micronuclear                                                                    
     reactors: "Advanced" Isn't Always Better.                                                                                  
                                                                                                                                
2:25:03 PM                                                                                                                    
                                                                                                                                
LISA  HOLLEN,  Union  of   Concerned  Scientists,  expressed  her                                                               
concerns with  nuclear power.   She pointed to Fukushima  and the                                                               
lives lost  11 years ago  as an example  of safety failure  in an                                                               
earthquake  zone.   Given  that  in 1964  Alaska  had the  second                                                               
largest earthquake in the world, 9.2,  she asked how there can be                                                               
any  question  of  safety.   She  questioned  where  the  nuclear                                                               
radiation will  be put  given there isn't  any regulation  of the                                                               
toxic chemicals  being dumped in  Alaska.  For example,  what the                                                               
US Navy couldn't  dump in the ocean was dumped  on land in Alaska                                                               
and  now the  state  is dealing  with that.    She asked  whether                                                               
Alaska  wants to  compound its  contamination  problem with  more                                                               
nuclear radiation.  She pointed  out the problem of safety caused                                                               
by humans, an example being the  person who shot the oil pipeline                                                               
causing  a major  environmental  disaster.   No  safety issue  is                                                               
addressed in  the bill, she  stated, and  it is unviable  to have                                                               
[nuclear power]  in Alaska.   She urged  that the  committee talk                                                               
with Dr. Edwin Lyman, Director  of Nuclear Power Safety, Union of                                                               
Concerned  Scientists, who  has been  dealing with  nuclear waste                                                               
for 40 years.                                                                                                                   
                                                                                                                                
2:27:33 PM                                                                                                                    
                                                                                                                                
CHAIR PATKOTAK closed public testimony  after ascertaining no one                                                               
else wished to testify on HB 299.                                                                                               
                                                                                                                                
2:28:12 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE RAUSCHER inquired about  the size of the radiation                                                               
fallout area should an explosion occur involving a reactor.                                                                     
                                                                                                                                
MS.  HOLDMANN   invited  the   individuals  who   testified  with                                                               
questions about  the safety or potential  applications of nuclear                                                               
energy or waste to join ACEP's  working group.  She said this can                                                               
be done  through ACEP's web  site and  that the working  group is                                                               
about getting good information to  the people who have questions.                                                               
She deferred to Dr. Finan to provide additional information.                                                                    
                                                                                                                                
2:29:57 PM                                                                                                                    
                                                                                                                                
DR.  FINAN addressed  the question  about explosions.   She  said                                                               
explosions  are characteristic  of  nuclear weapons,  but not  of                                                               
nuclear power plants.  Advanced  nuclear power plants do not have                                                               
the  characteristics  that  are  required to  produce  a  nuclear                                                               
explosion,  she  continued,  and   because  it  isn't  physically                                                               
realistic, she doesn't  expect to see any fallout.   She recalled                                                               
Ms. Holdmann's  description of a  10-mile radius  evacuation area                                                               
for large light-water reactors and  of a facility site fence line                                                               
area for  advanced reactors.  She  said that the fence  line area                                                               
would be the expected impact of a major accident.                                                                               
                                                                                                                                
DR.  FINAN, regarding  the Fukushima  accident, agreed  there was                                                               
enormous loss  of life  that day.   She  said 20,000  people were                                                               
killed  by the  tsunami from  the  earthquake, not  by a  nuclear                                                               
accident.    The nuclear  incident,  she  continued, caused  very                                                               
localized death among the workers,  some from drowning, and there                                                               
was evacuation, but the destruction  was the result of a tsunami,                                                               
not a nuclear accident.                                                                                                         
                                                                                                                                
DR.  FINAN  discussed the  comparison  made  between nuclear  and                                                               
diesel contamination.  She agreed  nuclear waste has a half-life,                                                               
but said diesel  lasts forever.  She cautioned  about getting too                                                               
wrapped  up in  how long  the half-life  is and  said most  toxic                                                               
wastes  last forever.   The  key  point, she  specified, is  that                                                               
nuclear energy  in the US  is not causing contamination,  most of                                                               
the contamination being heard about  comes from a time of weapons                                                               
production.   It needs  to be distinguished  between what  is the                                                               
legacy  of weapons  activities and  what has  been the  record of                                                               
nuclear energy, which has been very positive.                                                                                   
                                                                                                                                
1:34:06 PM                                                                                                                    
                                                                                                                                
DR. FINAN,  regarding the concern expressed  about nuclear waste,                                                               
stated that nuclear energy is  unique in managing its waste very,                                                               
very closely and containing the  waste onsite and packaging it in                                                               
concrete  and  knowing exactly  where  it  is,  how much  it  is,                                                               
monitoring it, and  securing it.  It's true that  there isn't yet                                                               
a final disposal solution in the  US, she continued.  At present,                                                               
the Yucca  Mountain designated disposal  site has been  caught up                                                               
in  delays and  dispute.   She  said she  has a  lot of  optimism                                                               
because the Department of Energy  is currently exploring consent-                                                               
based  siting,  which is  an  approach  to siting  nuclear  waste                                                               
storage and  disposal that relies  on consensus  communities, not                                                               
the selection  of a site by  policymakers.  She said  she doesn't                                                               
think that  the disposal of  nuclear waste  from the Lower  48 is                                                               
being proposed  by anybody.  This  is about the potential  to use                                                               
advanced  nuclear  energy  technologies  to  help  Alaskans  have                                                               
clean,  secure, and  affordable  energy, she  stated,  it is  not                                                               
about moving nuclear  waste from the Lower 48 to  Alaska.  Moving                                                               
nuclear waste  outside of the  US is not permitted,  she advised,                                                               
so nuclear waste could not  be moved through Canada and therefore                                                               
she does not think it is on the table.                                                                                          
                                                                                                                                
DR.  FINAN addressed  the concern  expressed about  Idaho wanting                                                               
Alaska to  be the first.   She said  she is before  the committee                                                               
representing Idaho  National Laboratory  and she lives  in Idaho,                                                               
and  she is  not pushing  personally  for anything  to happen  in                                                               
Alaska.   She said Idaho does  want this first and  is working to                                                               
host the  first NuScale Power Plant.   Idaho is also  going to be                                                               
the site  of DoD's Pele  Mobile Microreactor, which  is scheduled                                                               
for between 2023  and 2025, so before the Eielson  project or any                                                               
other potential  project in Alaska.   Several other  projects are                                                               
moving forward  in Idaho, including  two small reactors  that are                                                               
in design  and planning and  one has some  National Environmental                                                               
Policy  Act (NEPA)  coverage already.   Idaho  is not  looking to                                                               
push this  on Alaska,  she added,  it is up  to Alaska  to decide                                                               
whether it is right for Alaska.                                                                                                 
                                                                                                                                
2:38:21 PM                                                                                                                    
                                                                                                                                
CHAIR  PATKOTAK  recalled that  another  question  was about  the                                                               
difference between the permitting  requirements of a microreactor                                                               
and  a  regular  sized  reactor,  and  the  ambiguity  that  less                                                               
stringent exceptions are being made for a microreactor.                                                                         
                                                                                                                                
DR. FINAN replied that the  federal requirements, which include a                                                               
safety analysis and a security  analysis through the NRC, are the                                                               
same for  both microreactors  and larger reactors.   There  is no                                                               
difference  between NRC's  requirements  for  a microreactor  and                                                               
NRC's requirements for any larger  reactors, she reiterated.  The                                                               
NRC has  the gold standard  of regulatory standards in  the world                                                               
for nuclear safety.                                                                                                             
                                                                                                                                
DR. FINAN,  regarding the concern expressed  about earthquakes in                                                               
Alaska,  stated that  advanced  reactor technologies,  especially                                                               
when  they are  much  smaller,  are being  developed  to be  more                                                               
compatible  with seismic  isolation.   There  is awareness  about                                                               
lots  of earthquakes  in Alaska,  she advised.   Earthquakes  are                                                               
something that the NRC looks at  very carefully for the safety of                                                               
the  technology and  that technology  will fit  on a  given site,                                                               
including the seismic characteristics of a site.                                                                                
                                                                                                                                
DR. FINAN  added that  the same safety  standards are  applied on                                                               
the  regulatory side;  there  is  still the  NEPA  process.   She                                                               
deferred to  Ms. Holdmann  or Ms. Carpenter  to speak  further to                                                               
the permitting requirements.                                                                                                    
                                                                                                                                
2:41:12 PM                                                                                                                    
                                                                                                                                
CHAIR PATKOTAK requested that Ms.  Holdmann or Ms. Carpenter also                                                               
address the gold standard process  that the NEPA process sets out                                                               
and that [Alaska] cannot do anything below those standards.                                                                     
                                                                                                                                
MS. CARPENTER  confirmed that any  sort of microreactor  sited in                                                               
Alaska would  be subject to  NRC's permitting requirements.   She                                                               
said DEC has authority to permit  the siting in addition to NRC's                                                               
permitting.                                                                                                                     
                                                                                                                                
CHAIR  PATKOTAK requested  Ms. Carpenter  to  elaborate from  the                                                               
state's  aspect  on  the   permitting  difference  between  large                                                               
reactors and microreactors.                                                                                                     
                                                                                                                                
MS. CARPENTER  responded that when DEC's  atomic energy authority                                                               
was drafted  in the 1970s it  had large legacy reactors  in mind.                                                               
So, she  continued, HB 299  is trying to  carve out a  few things                                                               
for  microreactors.    First, HB  299  would  remove  legislative                                                               
siting  requirements for  microreactors  but microreactors  would                                                               
still be subject to local approval  as well as DEC permitting and                                                               
NRC permitting.  Second, HB  299 would exempt these microreactors                                                               
from the  six state  agency study requirements.   The  thought is                                                               
that ACEP  along with the National  Labs is the place  to do that                                                               
study rather than the six state agencies.                                                                                       
                                                                                                                                
2:43:55 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HANNAN  addressed Ms. Carpenter's  statement that,                                                               
as  drafted  HB  299  allows local  governments  to  have  siting                                                               
authority.   She noted that  much of  Alaska is outside  of local                                                               
government and  asked whether siting authority  would remain with                                                               
the legislature  for unorganized boroughs.   For example, whether                                                               
a remote  mine in  an unorganized borough  would have  the siting                                                               
authority  to  decide  about  placing  a  microreactor  there  or                                                               
whether the legislature would have that authority.                                                                              
                                                                                                                                
MS.  CARPENTER  answered  that in  an  unorganized  borough  that                                                               
authority would remain with the legislature.                                                                                    
                                                                                                                                
2:44:51 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SCHRAGE commented  that  HB  299 recognizes  that                                                               
nuclear  technology has  come  a  long way  over  the past  seven                                                               
decades.  For  example, he continued, there is  now less reliance                                                               
on  active cooling  management in  nuclear power  generation, and                                                               
going   to  passive   management   with  [microreactors],   which                                                               
dramatically  mitigates the  risk  of  meltdown or  environmental                                                               
contamination.  It is important  for the committee to explore and                                                               
vet the technology  that is encompassed in this  bill, he opined,                                                               
because  it is  no  longer nuclear  fuel rods  with  the risk  of                                                               
meltdown if  there is  a human error  in the  cooling management.                                                               
With current technology  that risk is greatly  reduced, he added,                                                               
and he  is not sure that  the legislature needs to  approve every                                                               
single  mine or  community that  wants  to put  in a  small-scale                                                               
passive nuclear power plant.                                                                                                    
                                                                                                                                
MS.  HOLDMANN responded  that Representative  Schrage did  a good                                                               
job of summarizing the day's presentation.                                                                                      
                                                                                                                                
2:48:10 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  RAUSCHER explained  he is  trying to  get at  the                                                               
properties of  the radiation  within these  reactors as  it would                                                               
relate to a reactor unit located  in a community getting blown up                                                               
by a terrorist act.  He asked  what the fallout area would be for                                                               
the  radiation within  this  type of  reactor,  and whether  that                                                               
could even happen.                                                                                                              
                                                                                                                                
CHAIR PATKOTAK posed an example  of someone shooting a missile at                                                               
a microreactor and blowing it up.   He asked what sort of nuclear                                                               
fallout or contamination would result.                                                                                          
                                                                                                                                
MS. HOLDMANN replied that she and  Dr. Finan will get together on                                                               
this question and provide a written answer to the committee.                                                                    
                                                                                                                                
2:50:14 PM                                                                                                                    
                                                                                                                                
CHAIR PATKOTAK announced that HB 299 was held over.                                                                             
                                                                                                                                
2:50:54 PM                                                                                                                    
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no  further business before the  committee, the House                                                               
Resources Standing Committee meeting was adjourned at 2:51 p.m.                                                                 

Document Name Date/Time Subjects
HB 299 Sectional Analysis version A.pdf HENE 2/8/2022 10:15:00 AM
HENE 3/1/2022 10:15:00 AM
HRES 3/11/2022 1:00:00 PM
HB 299
HB 299 APA Letter of Support.pdf HENE 2/8/2022 10:15:00 AM
HENE 3/1/2022 10:15:00 AM
HRES 3/11/2022 1:00:00 PM
HB 299
HB 299 ACEP UAF Presentation 3.11.2022.pdf HRES 3/11/2022 1:00:00 PM
HB 299
HB 299 Research & Background.pdf HENE 2/8/2022 10:15:00 AM
HENE 3/1/2022 10:15:00 AM
HRES 3/11/2022 1:00:00 PM
HB 299
HJR 34 Letter of Support RDC 3.11.2022.pdf HRES 3/11/2022 1:00:00 PM
SRES 3/28/2022 3:30:00 PM
HJR 34
HB 299 Testimony Provided by ACAT 3.11.2022.pdf HRES 3/11/2022 1:00:00 PM
HB 299
HJR 34 Testimony Received as of 3.11.2022.pdf HRES 3/11/2022 1:00:00 PM
SRES 3/28/2022 3:30:00 PM
HJR 34