Legislature(2021 - 2022)BARNES 124

03/18/2022 01:00 PM House RESOURCES

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Delayed to 10 Minutes Following Session --
+= HB 304 CHUGACH STATE PARK/EAGLE RIVER LIONS CLUB TELECONFERENCED
Moved HB 304 Out of Committee
+ Bills Previously Heard/Scheduled TELECONFERENCED
+= HB 299 MICROREACTORS TELECONFERENCED
Heard & Held
                    ALASKA STATE LEGISLATURE                                                                                  
               HOUSE RESOURCES STANDING COMMITTEE                                                                             
                         March 18, 2022                                                                                         
                           1:15 p.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Josiah Patkotak, Chair                                                                                           
Representative Grier Hopkins, Vice Chair                                                                                        
Representative Zack Fields                                                                                                      
Representative Calvin Schrage                                                                                                   
Representative Sara Hannan                                                                                                      
Representative George Rauscher                                                                                                  
Representative Mike Cronk                                                                                                       
Representative Ronald Gillham                                                                                                   
Representative Tom McKay                                                                                                        
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
All members present                                                                                                             
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
HOUSE BILL NO. 304                                                                                                              
"An Act modifying the boundary of Chugach State Park; directing                                                                 
the sale of land to the Eagle River Lions Club; and providing                                                                   
for an effective date."                                                                                                         
                                                                                                                                
     - MOVED HB 304 OUT OF COMMITTEE                                                                                            
                                                                                                                                
HOUSE BILL NO. 299                                                                                                              
"An Act relating to microreactors."                                                                                             
                                                                                                                                
     - HEARD & HELD                                                                                                             
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: HB 304                                                                                                                  
SHORT TITLE: CHUGACH STATE PARK/EAGLE RIVER LIONS CLUB                                                                          
SPONSOR(s): REPRESENTATIVE(s) MERRICK                                                                                           
                                                                                                                                
02/04/22       (H)       READ THE FIRST TIME - REFERRALS                                                                        
02/04/22       (H)       RES                                                                                                    
03/16/22       (H)       RES AT 1:00 PM BARNES 124                                                                              
03/16/22       (H)       Heard & Held                                                                                           
03/16/22       (H)       MINUTE(RES)                                                                                            
03/18/22       (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                                                                              
03/11/22       (H)       Heard & Held                                                                                           
03/11/22       (H)       MINUTE(RES)                                                                                            
03/14/22       (H)       RES AT 1:00 PM BARNES 124                                                                              
03/14/22       (H)       -- MEETING CANCELED --                                                                                 
03/18/22       (H)       RES AT 1:00 PM BARNES 124                                                                              
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
JAYME JONES, Staff                                                                                                              
Representative Kelly Merrick                                                                                                    
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  During the hearing on HB 304, answered a                                                                 
question on behalf of Representative Merrick, prime sponsor of                                                                  
the bill.                                                                                                                       
                                                                                                                                
REPRESENTATIVE KELLY MERRICK                                                                                                    
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  During the hearing on HB 304, provided                                                                   
final comments as prime sponsor of the bill.                                                                                    
                                                                                                                                
MARCUS NICHOL, Senior Director                                                                                                  
New Reactors                                                                                                                    
Nuclear Energy Institute (NEI)                                                                                                  
Washington, D.C.                                                                                                                
POSITION STATEMENT:   During  the hearing on  HB 299,  provided a                                                             
PowerPoint titled Microreactors Rural Use Considerations.                                                                       
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
1:15:54 PM                                                                                                                    
                                                                                                                                
CHAIR  JOSIAH  PATKOTAK  called   the  House  Resources  Standing                                                             
Committee meeting to  order at 1:15 p.m.   Representatives McKay,                                                               
Fields, Cronk, Hopkins, Schrage,  Rauscher, Gillham, and Patkotak                                                               
were  present  at the  call  to  order.   Representatives  Hannan                                                               
arrived as the meeting was in progress.                                                                                         
                                                                                                                                
        HB 304-CHUGACH STATE PARK/EAGLE RIVER LIONS CLUB                                                                    
                                                                                                                                
1:16:36 PM                                                                                                                    
                                                                                                                                
CHAIR PATKOTAK announced  that the first order  of business would                                                               
be HOUSE BILL NO. 304, "An  Act modifying the boundary of Chugach                                                               
State Park; directing  the sale of land to the  Eagle River Lions                                                               
Club; and providing for an effective date."                                                                                     
                                                                                                                                
1:16:52 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GILLHAM offered his  understanding that should the                                                               
Eagle River  Lions Club give up  Lions Club Park it  would revert                                                               
to Chugach  State Park.   He  asked where this  is stated  in the                                                               
bill.                                                                                                                           
                                                                                                                                
1:17:20 PM                                                                                                                    
                                                                                                                                
JAYME JONES,  Staff, Representative  Kelly Merrick,  Alaska State                                                               
Legislature, on  behalf of Representative Merrick,  prime sponsor                                                               
of  HB 304,  replied  that  it is  stated  in  the memorandum  of                                                               
understanding (MOU)  between the Eagle  River Lions Club  and the                                                               
Department of Natural Resources (DNR).                                                                                          
                                                                                                                                
1:17:50 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  KELLY MERRICK,  Alaska  State Legislature,  prime                                                               
sponsor of  HB 304, thanked  the committee for hearing  the bill.                                                               
She said the  people of Eagle River as well  as all Alaskans will                                                               
be excited to see this happen.                                                                                                  
                                                                                                                                
1:18:04 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HOPKINS  moved to report  HB 304 out  of committee                                                               
with  individual  recommendations  and  the  accompanying  [zero]                                                               
fiscal note.   There being no objection, HB 304  was moved out of                                                               
the House Resources Standing Committee.                                                                                         
                                                                                                                                
1:18:34 PM                                                                                                                    
                                                                                                                                
The committee took an at-ease from 1:18 p.m. to 1:21 p.m.                                                                       
                                                                                                                                
                      HB 299-MICROREACTORS                                                                                  
                                                                                                                                
1:21:13 PM                                                                                                                    
                                                                                                                                
CHAIR PATKOTAK announced  that the final order  of business would                                                               
be HOUSE BILL NO. 299, "An Act relating to microreactors."                                                                      
                                                                                                                                
1:21:35 PM                                                                                                                    
                                                                                                                                
MARCUS  NICHOL, Senior  Director,  New  Reactors, Nuclear  Energy                                                               
Institute  (NEI),  provided   a  PowerPoint  presentation  titled                                                               
 Microreactors  Rural Use  Considerations.    He  said  NEI is  a                                                               
trade  association  whose  members  include  utilities  that  own                                                               
nuclear power plants and technology  companies that develop these                                                               
microreactors.                                                                                                                  
                                                                                                                                
MR. NICHOL  said he  will be  discussing microreactors  for rural                                                               
use cases.   He pointed  out that the microreactor  technology is                                                               
designed upfront to replace diesel  generators like those used in                                                               
rural areas.   He displayed slide 2,  "Micro Reactor Technology,"                                                               
which read  as follows [original  punctuation provided  with some                                                               
formatting changes]:                                                                                                            
                                                                                                                                
     square4 Very small size                                                                                                    
          Site as small as 0.1 acres, building ~size of a                                                                       
          house                                                                                                                 
          Reactor is road shippable, minimal site work                                                                          
   square4 Resilience  withstand, mitigate or quickly recover                                                                   
        from                                                                                                                    
          Extreme natural events                                                                                                
          Man-made physical and cyber threats                                                                                   
     square4 Operations                                                                                                         
       Automatic operations, island mode and black-start                                                                        
          Flexible       hybrid    energy   and   renewables                                                                    
          integration                                                                                                           
                                                                                                                                
     Other Designs (not all inclusive)                                                                                          
     ? BWXT                                                                                                                     
     ? General Atomics                                                                                                          
     ? HolosGen                                                                                                                 
     ? Hydromine                                                                                                                
     ? NuGen                                                                                                                    
     ? NuScale                                                                                                                  
     ? X-energy                                                                                                                 
                                                                                                                                
MR. NICHOL  explained that the  very small size  of microreactors                                                               
is  what makes  them  suitable for  replacing diesel  generators.                                                               
They  must be  the right  size power  output but  take up  a very                                                               
small  footprint  to be  able  to  fit  into areas  where  diesel                                                               
generators are located.  They  must be resilient whether alone or                                                               
paired  with   renewables  and  energy   storage  systems.     In                                                               
operations  they  must  perform  like  a  diesel  generator  with                                                               
automatic  operations  and  flexible  to  match  the  demand  and                                                               
integrate with other sources.                                                                                                   
                                                                                                                                
1:24:01 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  HANNAN  noted  that Alaskas   remote,  generator-                                                               
dependent locations  are not road  connected.  She  asked whether                                                               
microreactors  have  been  shipped  into  locations  using  large                                                               
aircraft or large water vessels.                                                                                                
                                                                                                                                
MR. NICHOL replied  that "road shippable" means the  units are of                                                               
a size and weight  that can fit on the back  of a semi-trailer or                                                               
be shipped by barge.  The  Department of Defense (DoD) is working                                                               
on demonstrating  that microreactors can be  shipped by aircraft,                                                               
such as  a C-40, so probably  not the type of  airfields that are                                                               
in rural  areas.   If a  diesel generator can  be brought  into a                                                               
location, then a microreactor can  be brought in because its size                                                               
and weight are similar.                                                                                                         
                                                                                                                                
1:26:02 PM                                                                                                                    
                                                                                                                                
MR. NICHOL moved to slide  3, "Market Opportunities."  He related                                                               
that the two types of  market opportunities for microreactors are                                                               
stationary and  mobile.  Mobile means  that they can be  used for                                                               
rapid response and  set up very quickly.  Mobility  is more of an                                                               
interest to  DoD which needs to  stand them up within  three days                                                               
and  remove  them from  site  within  seven  days, which  is  the                                                               
definition of  mobility.  Stationary  microreactors are  what are                                                               
being considered  in Alaska for remote  villages, mining, defense                                                               
installations, and  microgrids in urban areas.   Stationary means                                                               
the microreactor is intended to  remain there for the entirety of                                                               
its life.   Some  microreactors will be  refueled every  10 years                                                               
and some  will be refueled every  20 years.  When  refueling, the                                                               
building  would be  reusable; replacing  one  reactor vessel  and                                                               
fuel with  another is almost like  batteries   one is  pulled out                                                               
and another is put in.                                                                                                          
                                                                                                                                
MR. NICHOL  displayed slide  4, "Topics," and  stated he  will be                                                               
discussing  four  topics:    costs   and  workforce,  safety  and                                                               
security,  used fuel  and decommissioning,  and deployment  plans                                                               
and policies.                                                                                                                   
                                                                                                                                
MR.  NICHOL  skipped   slide  5  and  reviewed   slide  6,  "Cost                                                               
Comparison," which included  a graphic and which  read as follows                                                               
[original punctuation provided]:                                                                                                
                                                                                                                                
     Full cost of micro-reactor vs only diesel fuel cost                                                                        
                                                                                                                                
     ? Diesel generator costs                                                                                                   
            Primarily fuel costs                                                                                                
            Fuel from $2.86/gallon to $4.89/gallon                                                                              
     ? Micro-reactor costs                                                                                                      
            Include used fuel disposal and decommissioning                                                                      
            10 year fuel life                                                                                                   
            40 year plant life                                                                                                  
            95% capacity factor                                                                                                 
                                                                                                                                
MR. NICHOL drew  attention to the graphic  depicting a comparison                                                               
of  electricity  generation cost  in  dollars  per kilowatt  hour                                                               
between microreactors  and diesel generators.   He specified that                                                               
the cost  depicted for  diesel generators  is primarily  the fuel                                                               
cost;  a cost  range was  used of  $2.86/gallon to  $4.89/gallon,                                                               
which includes the transportation surcharge  .  Because the focus                                                               
is on fuel  to see if microreactors are  competitive, the graphic                                                               
does  not incorporate  the  capital cost  nor  the operation  and                                                               
maintenance  (O&M) cost.   The  cost  depicted for  microreactors                                                               
includes all the costs: used  fuel, decommissioning cost, capital                                                               
cost,  operating  cost, fuel  cost.    The assumptions  used  for                                                               
microreactors  include that  the microreactor  would be  refueled                                                               
once every  10 years, a  40-year plant  life, and operation  at a                                                               
high-capacity factor.  Mr. Nichol  noted that if the microreactor                                                               
needed to  be flexible, then it  would not produce 95  percent of                                                               
the  time.   He  further  noted  that  the  impact is  a  minimal                                                               
increase when going down to 50-60 percent capacity factor.                                                                      
                                                                                                                                
1:30:09 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HANNAN inquired about  the existence of commercial                                                               
operators that handle  the spent fuel.  Given  that the locations                                                               
in Alaska would be remote,  she further asked whether there would                                                               
be secured storage and transport of  the spent fuel to a disposal                                                               
location, where those  are located, and whether  the rate charged                                                               
would  be dependent  on  the  market demand  or  included in  the                                                               
purchase price of a 40-year reactor.                                                                                            
                                                                                                                                
MR.  NICHOL responded  that microreactors  use a  different model                                                               
for addressing  used fuel than  current reactors.  Until  a final                                                               
disposal  repository  is  available,  most  of  the  microreactor                                                               
companies he  has talked to  are planning  to take back  the used                                                               
fuel.  They  would take it to a   refurbishment facility  because                                                               
the  reactor vessel  can  be re-used.   The  used  fuel would  be                                                               
removed  and stored  on site  at the  refurbishment facility;  it                                                               
would  not  stay  in  the   microreactor  location.    Used  fuel                                                               
management costs are very small compared  to the other costs of a                                                               
microreactor  and  the  used  fuel   management  costs  would  be                                                               
included in this analysis.                                                                                                      
                                                                                                                                
1:32:18 PM                                                                                                                    
                                                                                                                                
MR. NICHOL  addressed the graph  on slide 7,  "Micro-Reactor Cost                                                               
Competitiveness," subtitled,  "Cost of  generation is  lower than                                                               
cost to consumer."   He explained that the graph  shows the range                                                               
of  microreactor  costs  that  were  assumed  for  remote  Arctic                                                               
communities,  remote  defense installations,  island  communities                                                               
and remote mining,  the Alaska Railbelt, and the U.S.  grid.  The                                                               
range  includes  higher,  moderate,  and lower  costs,  with  the                                                               
middle  [moderate] cost  being the  best estimate  and the  lower                                                               
cost being  the most optimistic.   Each  of the ranges  assumed a                                                               
different   amount  of   cost  reduction   as   [the  number   of                                                               
microreactors continued  to be  deployed].   The costs  of energy                                                               
generation in  each of the  five depicted markets do  not include                                                               
the transmission overhead  and are primarily the fuel  cost.  The                                                               
biggest  takeaway is  that  even the  first  microreactor at  the                                                               
highest expected cost  is cost competitive in some  of the remote                                                               
Arctic communities.   At the most  optimistic costs microreactors                                                               
are competitive in  almost all the markets,  including the Alaska                                                               
Railbelt.  As reduction of  costs continues, microreactors become                                                               
more and more competitive in those markets.                                                                                     
                                                                                                                                
MR. NICHOL noted  that nuclear is a high  capital cost technology                                                               
with very  low fuel  and operating  cost.   He reviewed  slide 8,                                                               
"Financing Microreactors," which read as follows [original                                                                      
punctuation provided]:                                                                                                          
                                                                                                                                
      Capital Costs of 5 MWe [megawatt electrical] plant =                                                                      
     $50M to $100M*                                                                                                             
                                                                                                                                
     square4 Conventional business model                                                                                        
          Local utility finances capital costs                                                                                  
          Financing typically by debt at low rates,                                                                             
          amortized                                                                                                             
                                                                                                                                
     square4 New business models                                                                                                
          Developer owns and operates plant, uses a Power                                                                       
          Purchase Agreement                                                                                                    
          Local utility does not finance capital costs,                                                                         
          only pays for power                                                                                                   
                                                                                                                                
     square4 Similarities and differences                                                                                       
          In both: customers only pay as levelized cost of                                                                      
          capital                                                                                                               
          New business model: developer bears bulk of                                                                           
          financial risk of project                                                                                             
                                                                                                                                
MR. NICHOL  said this  new business  model with  microreactors is                                                               
unique in  that some of the  developers are offering to  bear the                                                               
bulk of  the financial risk of  the project.  This  insulates the                                                               
utility from risk since it is not financing the capital project.                                                                
                                                                                                                                
MR. NICHOL addressed slide 9, "Micro-Reactor Workforce," which                                                                  
read as follows [original punctuation provided with some                                                                        
formatting changes]:                                                                                                            
                                                                                                                                
     Target <10 employees to power rural areas                                                                                  
                                                                                                                                
     Technology enablers                                                                                                      
     Safety and simplicity in design                                                                                            
     Automatic operations                                                                                                       
     Remote operations                                                                                                          
     Security by design                                                                                                         
                                                                                                                                
      NRC [Nuclear Regulatory Commission] considering for                                                                     
     microreactors                                                                                                            
     Minimal worker training and qualifications                                                                                 
    Operators    allowed     additional    duties    (e.g.,                                                                     
     maintenance, administrative)                                                                                               
     No operator needed on site                                                                                                 
     No armed security guards needed                                                                                            
                                                                                                                                
     square4 Hub areas: population sizes that can supply workers                                                                
          Direct use of electricity and heat with existing                                                                      
          grid and district heating                                                                                             
    square4 Spoke areas: population sizes that cannot supply                                                                    
        workers                                                                                                                 
          Electric transmission from hub region (if close                                                                       
          by); OR                                                                                                               
          Use hydrogen or ammonia from hub region (low-cost                                                                     
          due to economics of microreactors and short                                                                           
                                                                                                                                
          transport distances)                                                                                                  
                                                                                                                                
MR. NICHOL  noted that a  nuclear power  plant of today  has many                                                               
more [than  10 workers] and has  workers on site 24  hours a day.                                                               
He  said it  is likely  that  the first  microreactors will  have                                                               
workers on site  24 hours a day  with four or five  shifts of two                                                               
to three workers.  Getting  to these smaller workforce numbers is                                                               
through  technology enablers  and  the NRC,  the regulator,  will                                                               
need to sign  off on those.  The safety  and simplicity in design                                                               
comes  from  using  natural  physics  in  the  operations.    The                                                               
operations  are automatic  -  gravity,  natural circulation,  and                                                               
things of nature are  built into the design to keep  it in a safe                                                               
condition should  anything go  wrong.   This means  human actions                                                               
dont  have to  be relied upon to maintain  safety, although there                                                               
will  always be  a person  watching it.   This  also reduces  the                                                               
training  and  qualification  requirements for  workers  to  high                                                               
school  level, unlike  the nuclear  power plants  of today  which                                                               
require  some workers  to have  college degrees.   The  automatic                                                               
operations allow for operators to  have additional duties because                                                               
they dont  have to be at the  controls all the time.  If approved                                                               
by  the NRC,  remote  operations will  be  possible with  someone                                                               
operating  the  microreactor from  a  central  facility far  away                                                               
rather than  having an operator  on site.   Someone in  a central                                                               
facility could operate many microreactors  spread across the U.S.                                                               
The  security by  design  means no  reliance  on dedicated  armed                                                               
responders to  protect the plant, or  at least not as  many.  All                                                               
of  this means  that locations  can  be a  hub area  which has  a                                                               
population size  that can supply  workers, or a spoke  area which                                                               
does not have a population size  that can supply workers.  A town                                                               
with a  population size  of 1,000 people  could easily  supply 10                                                               
workers for a microreactor.                                                                                                     
                                                                                                                                
1:42:05 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  HANNAN asked  how microreactors  produce hydrogen                                                               
and ammonia, and what the  distribution of this energy looks like                                                               
to a spoke area.                                                                                                                
                                                                                                                                
MR. NICHOL answered that hydrogen  is burned in a hydrogen burner                                                               
as  an alternative  to diesel  fuel  and electricity  or heat  is                                                               
produced from  burning.  Hydrogen  can be made by  electrolysis -                                                               
electricity is  sent through water  which makes the  hydrogen and                                                               
oxygen separate and the hydrogen  is then captured.  Hydrogen can                                                               
also be made by heat-assisted  electrolysis - the water is boiled                                                               
and not  as much electricity  is needed to separate  the hydrogen                                                               
and oxygen.   The captured hydrogen is then  compressed into very                                                               
small  volumes for  transportation in  the same  manner that  any                                                               
other goods would be transported.                                                                                               
                                                                                                                                
REPRESENTATIVE  HANNAN  asked  whether the  microreactor  is  the                                                               
source of the hydrogen.                                                                                                         
                                                                                                                                
MR.  NICHOL  replied  that  it  is  a  secondary  process.    The                                                               
microreactor provides the  power and then the power is  used in a                                                               
separate  process for  the hydrogen,  so the  hydrogen generation                                                               
piece  would have  to be  built.   Hydrogen  can be  made with  a                                                               
diesel generator, renewables, or natural gas.                                                                                   
                                                                                                                                
1:45:05 PM                                                                                                                    
                                                                                                                                
MR.  NICHOL skipped  slide  10 and  discussed  slide 11,  "Micro-                                                               
Reactor  Safety," which  read  as  follows [original  punctuation                                                               
provided with some formatting changes]:                                                                                         
                                                                                                                                
     Building upon a strong safety record                                                                                       
     square4 Operating fleet: one of the safest industrial                                                                      
        working environments                                                                                                    
          Strong-Independent    Regulator,   Built    tough,                                                                    
          Operational Performance                                                                                               
     square4 Enhancing safety for advanced reactors*                                                                            
          Safety profile fundamentally differ from other                                                                        
          power reactors                                                                                                        
                                                                                                                                
     Inherent Safety Features                                                                                                 
     ? Robust hardened structures                                                                                               
     ? Rely on physics                                                                                                          
          Natural circulation                                                                                                   
          Gravity                                                                                                               
     ? Fail-safe, shuts itself off                                                                                              
       Operational simplicity: very few instruments and                                                                         
        controls                                                                                                                
                                                                                                                                
     Reduce Risks                                                                                                             
       Much smaller radionuclide inventory                                                                                      
       Minimize potential for accidents                                                                                         
       Mitigate consequences                                                                                                    
       Proliferation resistant fuel and enrichments below                                                                       
        20% U-235                                                                                                               
                                                                                                                                
     Emergency Response                                                                                                       
      No credible event that could result in unacceptable                                                                       
        off-site doses                                                                                                          
     ? Maintain safety without the need for                                                                                     
          Power                                                                                                                 
          Additional coolant                                                                                                    
          Human actions                                                                                                         
     ? Emergency planning                                                                                                       
                                                                                                                                
MR. NICHOL  stated that existing operating  nuclear reactors have                                                               
one  of the  lowest  rates of  working  environment injuries  and                                                               
deaths.  The zero radiological  incidents in the U.S. are because                                                               
the NRC  has the highest standards  in the world.   The safety of                                                               
microreactors  is different  than existing  reactors because  the                                                               
designs  are  so  different,  especially  the  size.    Regarding                                                               
inherent safety features, Mr. Nichol  pointed out the reliance on                                                               
physics.  Regarding reduced risks,  he said micronuclear reactors                                                               
are  generally 1-10  megawatts in  size whereas  current reactors                                                               
are 1,000 or more megawatts,  meaning a microreactor has one one-                                                               
thousandth of  radioactive material  than a  current reactor.   A                                                               
benefit  of this  is that  much  less decayed  heat is  generated                                                               
after  shutdown;  it  is  called  decayed  heat  because  as  the                                                               
material  decays  it  produces  radiation and  heat.    Regarding                                                               
emergency response,  he specified  that safety can  be maintained                                                               
for a very long time or  indefinitely without the need for power,                                                               
additional  coolant, or  human actions,  the three  things needed                                                               
but not had in Fukushima.                                                                                                       
                                                                                                                                
1:51:27 PM                                                                                                                    
                                                                                                                                
MR.  NICHOL   presented  slide   12,  "U.S.   Nuclear  Regulatory                                                               
Commission,"   which  read   as  follows   [original  punctuation                                                               
provided]:                                                                                                                      
                                                                                                                                
     Regulatory Reviews are Rigorous                                                                                            
                            1                                                                                                   
     square4 Information Reviewed                                                                                               
          Applications are thousands of pages (NuScale was                                                                      
          12,000 pages)                                                                                                         
          NRC reviews and audits supporting information                                                                         
          (NuScale was 2 million pages)                                                                                         
                              1                                                                                                 
          Schedule for typical design review is 3 to 4                                                                          
          years                                                                                                                 
          Fees for typical design review are $45M to $68M                                                                       
          (~ 200,000 person-hours)                                                                                              
     square4 Coordination with Other Agencies                                                                                   
          DHS [Department of Homeland Security] and other                                                                       
          agencies involved in defining the design basis                                                                        
          threat                                                                                                                
          FEMA   [Federal   Emergency   Management   Agency]                                                                    
                                        2                                                                                       
          involved in Emergency Planning                                                                                        
     square4 Public Involvement                                                                                                 
          Public can file contentions on the application                                                                        
       Hearing opportunities before licenses are granted                                                                        
     1)                                                                                                                         
         These are historical for grid-scale reactors,                                                                          
     microreactors are expected to be less due to enhanced                                                                      
     safety and simplicity                                                                                                      
     2)                                                                                                                         
      NRC rulemaking is considering whether FEMA would be                                                                       
      involved in review when the EPZ [emergency planning                                                                       
     zone] does not extend beyond the site boundary                                                                             
                                                                                                                                
MR. NICHOL  explained that  the NRC must  review and  approve all                                                               
these designs  and must  approve those  designs to  be used  at a                                                               
specific  site.    After  that,  the  NRC  continues  to  provide                                                               
oversight and inspection.  Regarding  the review, he said the NRC                                                               
looks at  the design and  its capabilities, the site,  the sites                                                                
features   such  as   earthquakes  or   flooding,  and   does  an                                                               
environmental review.   He qualified  that slide 12 relates  to a                                                               
large reactor, so  a microreactor is likely to be  less than what                                                               
is depicted on  the slide.  Mr. Nichol said  NEI thinks there are                                                               
opportunities  for  efficiency in  these  robust  reviews and  is                                                               
working with  the NRC in  this regard.   It is expected  that the                                                               
review for  microreactors will be  less than what is  outlined on                                                               
slide 12.  Regarding coordination  with other agencies, he stated                                                               
that the  design basis threat  is the characteristics of  the bad                                                               
guys that  might attack  a nuclear  power plant  or try  to steal                                                               
material.  He further noted  that state agencies will be involved                                                               
with the proposed projects.                                                                                                     
                                                                                                                                
1:55:32 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HANNAN  inquired about the expected  design review                                                               
fees for  microreactors, given  the fee  for current  reactors is                                                               
[$45-$68 million].                                                                                                              
                                                                                                                                
MR. NICHOL responded that it is  unknown right now, but less than                                                               
half of that seems reasonable.   He pointed out that once the NRC                                                               
approves the design,  every time the NRC reviews  the same design                                                               
at a  new site  it will  be a  lot less  cost, so  this  overhead                                                               
cost will subsequently be made up for in volume.                                                                                
                                                                                                                                
REPRESENTATIVE HANNAN  inquired about  a ballpark figure  on what                                                               
the cost  might be to  bring a microreactor from  design, through                                                               
the NRC  process and  permitting, and  to deployment.   Excluding                                                               
remote  mines,  she speculated  that  few  communities in  Alaska                                                               
would be able to amortize over 50  years a project that is in the                                                               
$100 million range.                                                                                                             
                                                                                                                                
MR. NICHOL answered that the  NRC licensing fees were included in                                                               
the  capital cost  projections that  he provided  earlier in  the                                                               
presentation.   He  said  his best  guess  is that  microreactors                                                               
could get down to a two-year  review and $10 million.  While that                                                               
might not  be the case for  the first microreactor, once  the NRC                                                               
approves that  design, called design certification,  the NRC does                                                               
not have to review the design  over and over, and would then just                                                               
look  at  the  site  characteristics.    So,  each  site  license                                                               
application  could  be far  less,  plus  the  NRC is  working  on                                                               
streamlining the processes.                                                                                                     
                                                                                                                                
1:58:52 PM                                                                                                                    
                                                                                                                                
MR.  NICHOL  continued  to slide  13,  "U.S.  Nuclear  Regulatory                                                               
Commission,"   which  read   as  follows   [original  punctuation                                                               
provided]:                                                                                                                      
                                                                                                                                
     What NRC Approval Means                                                                                                    
     square4 Safety                                                                                                             
          Risks from nuclear plant to public are much lower                                                                     
          than other societal risks (less than 0.1%)                                                                            
                                                    1                                                                           
          Dose to public is less than 100 mrem/yr[milli                                                                         
          roentgen equivalent man]                                                                                              
     square4 Security                                                                                                           
          Protected against radiological sabotage                                                                               
          Protected against theft and diversion                                                                                 
     square4 Emergency Planning                                                                                                 
          Worst case dose at Emergency Planning Zone                                                                            
          expected to be less than 1 rem                                                                                        
          Microreactors expected to have EPZ at site                                                                            
          boundary                                                                                                              
     square4 Environmental                                                                                                      
          Plant   and   site   meet   all   NEPA   [National                                                                    
          Environmental Policy Act] and other Environmental                                                                     
          Laws (e.g., Water, Air)                                                                                               
     1)                                                                                                                         
        Average dose from food and water (e.g., banana,                                                                         
     beans, meat, carrots) is 30 mrem per year; from living                                                                     
     near a nuclear plant is less than 1 mrem                                                                                   
                                                                                                                                
MR. NICHOL  said NRC  approval means  that the  safety, security,                                                               
emergency planning, and environmental  standards have been met or                                                               
exceeded.  He  noted that  other societal risks   are things like                                                               
cancer,  car  accidents, falling,  or  drowning.   Regarding  the                                                               
chart on slide 13, he  explained that millirem is the measurement                                                               
unit  for  radiation  dose  to the  body.    Regarding  security,                                                               
including  security during  transportation  of  the material,  he                                                               
stated that the  NRC looks at things like  the [terrorist attacks                                                               
of  September  11,  2001], current  terrorism  capabilities,  and                                                               
other things.   Regarding emergency  planning, he  specified that                                                               
the site size and EPZ for a microreactor is about 1/4th an acre.                                                                
                                                                                                                                
2:05:40 PM                                                                                                                    
                                                                                                                                
MR. NICHOL  displayed slide 14,  Used  Fuel and Decommissioning.                                                                
He  then reviewed  slide 15,  "Addressing Waste,"  which read  as                                                               
follows [original punctuation provided]:                                                                                        
                                                                                                                                
      All Energy Sources Have Waste, and All Must Do Three                                                                      
     Things to Address it                                                                                                       
                                                                                                                                
     square4 Must be able to manage it safely                                                                                   
          Used fuel is solid, compact and there is proven                                                                       
          technology to store it safely                                                                                         
          Over 1,300 used fuel shipments safely completed                                                                       
          in U.S.                                                                                                               
                                                                                                                                
     square4 Must be able to pay for it                                                                                         
          U.S. law requires nuclear plants to fund used                                                                         
         fuel management and decommissioning activities                                                                         
          Over $40 billion in Nuclear Waste Fund                                                                                
                                                                                                                                
     square4 Must have a place to put it                                                                                        
          Department of Energy required dispose of used                                                                         
          fuel                                                                                                                  
          Most micro-reactor companies will take back used                                                                      
          fuel soon after refueling                                                                                             
                                                                                                                                
MR.  NICHOL said  the nuclear  industry calls  waste  used  fuel                                                                
rather than  nuclear  waste  because 95 percent  of the potential                                                               
energy is  still in  it, so  it could be  re-used in  the future.                                                               
Used fuel  emits radiation  and is  radioactive material,  so the                                                               
technology to  address that includes steel  canisters or concrete                                                               
for storage  and safe transportation.   Regarding a place  to put                                                               
nuclear waste, he  related that Yucca Mountain  was designated by                                                               
law as the  location.  Yucca Mountain has been  studied and found                                                               
technically  suitable  for used  fuel  disposal,  which has  been                                                               
confirmed by  the NRC.   There is discussion about  whether Yucca                                                               
Mountain  should still  be the  location or  whether a  different                                                               
location should  be chosen using  a consent-based  process, which                                                               
means the  community has decided  it wants  to be a  location for                                                               
used fuel.   This discussion about  location is why used  fuel is                                                               
still at reactor sites.                                                                                                         
                                                                                                                                
2:09:54 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE CRONK asked where the spent fuel is stored.                                                                      
                                                                                                                                
MR. NICHOL replied that currently all  used fuel is stored at the                                                               
nuclear  reactor where  it was  produced, which  includes several                                                               
places  that have  been shut  down and  decommissioned.   Work is                                                               
being  done  to  develop  a consolidated  interim  storage  (CIS)                                                               
facility,  a central  location to  which the  used fuel  could be                                                               
sent and  stored, but  it is  not underway yet.   There  are some                                                               
communities  in  New Mexico  and  Texas  that are  supporting  of                                                               
having a CIS facility.                                                                                                          
                                                                                                                                
REPRESENTATIVE CRONK  asked how  much fuel is  in a  spent micro-                                                               
reactor.                                                                                                                        
                                                                                                                                
MR.  NICHOL  responded  that  the  fuel  doesnt   change  in  its                                                               
physical characteristics, it  is the same size  and shape because                                                               
it is solid, but  there are changes in the atoms  inside.  So, it                                                               
would be  the same  size as  the reactor that  it came  in, which                                                               
would fit  on the back  of a truck  or other conveyance  that was                                                               
used to get it  there.  The fuel could be  taken out and probably                                                               
put into  a smaller container  because the reactor is  built with                                                               
other features in it, but  most of the microreactor companies are                                                               
planning to do that back in a refurbishing center.                                                                              
                                                                                                                                
2:12:30 PM                                                                                                                    
                                                                                                                                
CHAIR PATKOTAK  asked whether  it is correct  that the  fuel cell                                                               
itself is wrapped in a bigger  ceramic [vessel] that is about the                                                               
size of a big kitchen trash can.                                                                                                
                                                                                                                                
MR. NICHOL  confirmed that the size  of a kitchen trash  can is a                                                               
fair assessment.                                                                                                                
                                                                                                                                
2:13:10 PM                                                                                                                    
                                                                                                                                
MR. NICHOL  discussed slide 16,  "Final Disposal," which  read as                                                               
follows [original punctuation provided]:                                                                                        
                                                                                                                                
     square4 Nations making progress on spent nuclear fuel                                                                      
        disposal                                                                                                                
          Finland       repository    licensed   and   under                                                                    
          construction                                                                                                          
          Sweden  repository approved for constructing                                                                          
          France  site identified, in public consultation                                                                       
          toward pilot phase                                                                                                    
          Canada  List of 22 candidate sites narrowed down                                                                      
          to 2, geologic investigations under way                                                                               
          Switzerland  geologic investigations supporting                                                                       
          siting process under way                                                                                              
          U.S.     Yucca Mountain designated by law,                                                                            
          alternatives being considered                                                                                         
     square4 Consolidated Interim Storage                                                                                       
          France, Sweden, and Switzerland all have deployed                                                                     
          CIS                                                                                                                   
          U.S. companies pursuing CIS solutions                                                                                 
                                                                                                                                
MR. NICHOL  noted that nations  are moving forward, and  many are                                                               
moving forward with consent-based  siting processes, meaning that                                                               
the communities being considered want  to be selected.  There are                                                               
communities  that would  like  to have  a  disposal facility,  he                                                               
stated, because it will be operated safely and has benefits.                                                                    
                                                                                                                                
2:14:43 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE CRONK submitted it would  be safe to say that most                                                               
Alaskans would not want the [used] fuel stored in Alaska.                                                                       
                                                                                                                                
MR. NICHOL replied that having  a microreactor in Alaska does not                                                               
mean there  would be  a repository  in the  state or  that Alaska                                                               
would even  be considered  for a repository.   A  community would                                                               
have to  stand up  and say  it wants a  repository, as  would the                                                               
state; without that the state would not be considered.                                                                          
                                                                                                                                
2:15:36 PM                                                                                                                    
                                                                                                                                
MR. NICHOL  reviewed slide 17,  "Optimizing the value  of nuclear                                                               
feedstock,"   which  read   as   follows  [original   punctuation                                                               
provided]:                                                                                                                      
                                                                                                                                
     square4 Future reactors may economically recycle used                                                                      
        nuclear fuel to extract even more energy from                                                                           
        uranium already mined                                                                                                   
       ? Initial new reactor startups will be on new fuel                                                                       
        ? Between 6 and 9 advanced reactor suppliers may be                                                                     
        able to power their machines with used fuel                                                                             
        ? Most envisioned recycling strategies would not                                                                        
        separate out pure plutonium                                                                                             
                                                                                                                                
MR. NICHOL reiterated that most of  what remains in the used fuel                                                               
still has  potential energy  value.  Fuel  is not  recycled today                                                               
largely because it  is cheaper to mine new uranium  than it is to                                                               
recycle used  fuel.  Somewhere in  the future it will  be cheaper                                                               
to recycle than it is to  get new uranium, although some advanced                                                               
reactor companies are pursuing recycling now.                                                                                   
                                                                                                                                
MR.  NICHOL displayed  slide 18  and  said he  will next  discuss                                                               
Deployment Plans  and Policies section  of his presentation.   He                                                               
moved to  slide 19, "Government  Deployment Support,"  which read                                                               
as follows [original punctuation provided]:                                                                                     
                                                                                                                                
     square4 Valuing all carbon-free sources of energy                                                                          
     square4 Federal Programs                                                                                                   
          Demonstrations                                                                                                        
          Tax Credits (e.g., Production)                                                                                        
          Loan Guarantees                                                                                                       
          Federal Power Purchase Agreements                                                                                     
     square4 State Programs                                                                                                     
          Tax incentives (e.g., property)                                                                                       
          Advanced cost recovery                                                                                                
          Infrastructure                                                                                                        
                                                                                                                                
MR. NICHOL  pointed out the  many policies for federal  and state                                                               
government  support for  getting advanced  nuclear reactors  into                                                               
the market.   Regarding state programs, he said  some are looking                                                               
at study bills and some  are repealing moratoriums like what this                                                               
committee  is considering  [in HB  299], which  would repeal  the                                                               
requirement for legislative approval.                                                                                           
                                                                                                                                
2:18:50 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE RAUSCHER  inquired about the  size of a   chunk of                                                               
uranium  that  would be  needed for  a 2025-megawatt   reactor, a                                                               
reactor representing a happy medium for todays discussion.                                                                      
                                                                                                                                
MR.  NICHOL responded  that he  would get  back to  the committee                                                               
with an answer, but said it is a small amount.                                                                                  
                                                                                                                                
2:19:35 PM                                                                                                                    
                                                                                                                                
MR.  NICHOL  addressed  slide 20,  "Advanced  Nuclear  Deployment                                                               
Plans," which displayed  a map highlighting the  states that have                                                               
passed state  policies to support advanced  reactors [Washington,                                                               
Idaho, Montana, Wyoming,  Nebraska, Wisconsin, Indiana, Kentucky,                                                               
West  Virginia,  Virginia,  and  North Carolina].    He  said  20                                                               
advanced  nuclear  projects in  the  U.S.  and Canada,  including                                                               
microreactors, are  being looked  at and  have been  discussed in                                                               
the public domain [depicted by black dots].                                                                                     
                                                                                                                                
MR.  NICHOL  proceeded  to slide  21,  "Micro-Reactor  Deployment                                                               
Projects," which  listed the 11 microreactor  projects planned by                                                               
various developers and that were included  on the map on slide 20                                                               
and have  been discussed in public.   He said Oklo  is looking at                                                               
deploying a 1.5 megawatt (MW)  microreactor at the Idaho National                                                               
Laboratory with a target on-line date  of [2025].  Also, Oklo has                                                               
an agreement  with Compass Mining for  providing up to 150  MW in                                                               
yet to be  determined locations and target on-line  dates.  Ultra                                                               
Safe Nuclear  has projects in  Canada [5 MW, target  on-line date                                                               
2025], in Illinois  [5 MW, target on-line target  date 2027], and                                                               
in Alaska with Copper Valley  Electric Association (CVEA) [target                                                               
on-line date  yet to  be determined].   He  noted that  Canada is                                                               
interested in microreactors  in rural areas for  largely the same                                                               
reason Alaska  is interested    to  replace diesel  generators in                                                               
remote  locations that  are  difficult  to get  to  except for  a                                                               
couple times a  year.  Westinghouse is doing work  in the U.S. [5                                                               
MW, target  on-line date 2027]  and Canada [5 MW,  target on-line                                                               
date 2027].   Radiant has plans in Idaho [1.2  MW, target on-line                                                               
date 2026].   The U.S. Air  Force has interest in  a microreactor                                                               
at Eielson  Air Force  Base (AFB) [1-10  MW, target  on-line date                                                               
2027].  The Department of Defense  is working on a mobile version                                                               
of  microreactor [1.5  MW, target  on-line date  2025], and  more                                                               
information is expected soon on DoDs technology selection.                                                                      
                                                                                                                                
2:23:05 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HANNAN said  she is surprised to see  a project in                                                               
Copper Valley as  her understanding was that Eielson  AFB was the                                                               
only active  project in Alaska.   She asked  which of the  two is                                                               
closer to completion, decision-making, or needing approval.                                                                     
                                                                                                                                
MR.  NICHOL replied  that the  Eielson AFB  project is  closer to                                                               
making a decision.   The plan is to issue  a request for proposal                                                               
soon,  with the  goal of  selecting a  vendor by  the end  of the                                                               
year.  About a month ago CVEA  issued a press release that it had                                                               
entered  a  memorandum of  understanding  (MOU)  with Ultra  Safe                                                               
Nuclear to explore  the feasibility, so it is not  yet a decision                                                               
to build, only an exploratory phase.                                                                                            
                                                                                                                                
2:25:27 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  MCKAY   offered  his  understanding  that   in  a                                                               
microreactor the uranium  in the cylinder creates  enough heat to                                                               
make  steam, which  turns some  type  of turbine,  which in  turn                                                               
turns the electric generator part  that provides electricity.  He                                                               
asked how  things are  set up  within the  container and  what is                                                               
different than  a diesel generator.   He  asked how the  power is                                                               
created from the cylinder of uranium.                                                                                           
                                                                                                                                
MR. NICHOL  drew attention  to the  farthest right  photograph on                                                               
slide 2 showing  the inside of a Radiant Kaleidos  container.  He                                                               
explained  that the  nuclear reactor  core produces  the fission,                                                               
the fission produces  lots of heat.   Several different processes                                                               
can  be used  to  transport  that heat  from  the  source to  the                                                               
generator or other  method of spinning to make  electricity.  One                                                               
such process  is heat pipes that  can transfer lots of  heat very                                                               
quickly to  the other  side, and another  process uses  helium to                                                               
transfer the heat.  Some  technologies may produce steam to drive                                                               
the turbine,  some may use the  heat directly, or some  might use                                                               
carbon dioxide.                                                                                                                 
                                                                                                                                
REPRESENTATIVE MCKAY pointed  out that the moving  parts in these                                                               
processes can  break and need  repair.   He observed on  slide 21                                                               
that  the design  of the  Eielson microreactor  has not  yet been                                                               
determined.  He asked which of  the four brands depicted on slide                                                               
2 might be the one going to Eielson.                                                                                            
                                                                                                                                
MR.  NICHOL replied  that  it is  unknown which  one  will go  to                                                               
Eielson  as no  selection  has  yet been  made.    A request  for                                                               
proposal is  expected to be issued  soon, he said, and  if things                                                               
go well the design may be chosen by years end.                                                                                  
                                                                                                                                
2:30:26 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  CRONK inquired  about the  amount of  excess heat                                                               
that  would be  produced  and  available to  use  in addition  to                                                               
producing electricity.                                                                                                          
                                                                                                                                
MR. NICHOL responded that it depends  on the heat process that is                                                               
used.   In a  very high temperature  intensive heat  process like                                                               
metal reforming or  chemical processing, most of the  heat may be                                                               
needed  for  that  so  there couldnt   be  heat  and  electricity                                                               
exactly at  the same  time.   In a  low heat  requirement process                                                               
like  district heating,  electricity could  be produced  and then                                                               
the  cooler gas  that is  coming out  and returning  to the  heat                                                               
source  could still  be at  a  high enough  temperature to  power                                                               
district heating.                                                                                                               
                                                                                                                                
CHAIR PATKOTAK announced that HB 299 was held over.                                                                             
                                                                                                                                
2:32:36 PM                                                                                                                    
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no further business before the committee, the House                                                                 
Resources Standing Committee meeting was adjourned at 2:32 p.m.                                                                 

Document Name Date/Time Subjects
HB 299 Presentation NEI State of Micro-Reactors 3.16.2022.pdf HRES 3/18/2022 1:00:00 PM
HB 299
HB 304 Letter of Support Eagle River Elks Club 3.18.2022.pdf HRES 3/18/2022 1:00:00 PM
HB 304
HB 299 Testimony Received as of 3.17.2022.pdf HRES 3/18/2022 1:00:00 PM
HB 299
HB 299 Letter of Support Dept. of the Air Force 3.18.2022.pdf HRES 3/18/2022 1:00:00 PM
HB 299