02/15/2022 10:15 AM House ENERGY

                      HB 299-MICROREACTORS                                                                                  
                                                                                                                                
10:32:41 AM                                                                                                                   
                                                                                                                                
CHAIR  SCHRAGE announced  the final  order of  business would  be                                                               
HOUSE BILL NO. 299, "An Act relating to microreactors."                                                                         
                                                                                                                                
CHAIR SCHRAGE opened public testimony on HB 299.                                                                                
                                                                                                                                
10:33:09 AM                                                                                                                   
                                                                                                                                
PAUL  ROEGE,   Executive  Director,  The  Advanced   Nuclear  and                                                               
Production Experts Group  (ANPEG), shared that ANPEG  is a public                                                               
and  private  collaboration  affiliated  with  the  Massachusetts                                                               
Institute of  Technology.  He  stated that the charter  exists to                                                               
enable a new  generation of abundant resilient  energy for remote                                                               
communities,  value-added  industries,  and  state  and  national                                                               
security.   He argued  that the  proposed legislation  could move                                                               
Alaska into  a leadership  role for  next-generation energy.   He                                                               
stated that ANPEG is ready to  work through the Alaska Center for                                                               
Energy  and Power  to help  communities understand  opportunities                                                               
microreactors offer.                                                                                                            
                                                                                                                                
10:34:27 AM                                                                                                                   
                                                                                                                                
MARY  WOOLLEN, Director  of  Stakeholder  Engagement, Ultra  Safe                                                               
Nuclear Corporation  (USNC), stated that USNC  has manufactured a                                                               
micro  modular reactor  (MMR)  specifically  designed for  remote                                                               
applications which  are difficult  to support  using conventional                                                               
or renewable power.  She  expressed the opinion that this reactor                                                               
would be well  suited for an application in  Alaska, and, because                                                               
MMR is  an advanced reactor,  it would [align] with  the proposed                                                               
legislation.    She expressed  excitement  that  USNC and  Copper                                                               
Valley Electric  Associate (CVEA) are jointly  conducting a study                                                               
to  determine  the   technical  feasibility,  social  acceptance,                                                               
location   cost,  and   operating   specifics   of  deploying   a                                                               
microreactor  in  the  Copper  Valley   service  area.    In  the                                                               
feasibility  study  a local  Alaskan  engineering  firm has  been                                                               
consulted  to  ensure  there  is   insight  into  the  particular                                                               
challenges in Alaska.  She  stated that, before entering into the                                                               
formal  permitting  process,  USNC   and  CVEA  are  concurrently                                                               
engaging  Alaskans  by  explaining  the technology  to  them  and                                                               
requesting their input.                                                                                                         
                                                                                                                                
MS.  WOOLLEN  stated that  technical  analysis  is combined  with                                                               
public  engagement to  begin  the process  of  earning a  "social                                                               
license,"  but to  build and  operate the  reactor, a  regulatory                                                               
license would  be required.   If the  results of  the feasibility                                                               
study  are favorable  and  a financial  agreement  is found  with                                                               
CVEA,  USNC  will  pursue  a regulatory  license  with  the  U.S.                                                               
Nuclear  Regulatory Commission  (NRC).   She  cautioned that  the                                                               
process is  long, expensive,  and rigorous,  but it  would ensure                                                               
the nuclear  reactor system is  safe and well-designed  before it                                                               
would be  sited.  She  explained that  the current law  in Alaska                                                               
requires legislative  preapproval for siting a  reactor, and this                                                               
creates a risk  for any company considering the  deployment of an                                                               
advanced reactor in  the state.  If any nuclear  reactor is to be                                                               
sited  in  Alaska,  she  reiterated   that  it  would  require  a                                                               
regulatory  license   from  the   NRC  and  support   from  local                                                               
communities.  She  said that [the passage of] HB  299 would serve                                                               
to  open the  door for  possibilities,  but it  would not  ensure                                                               
success.   In  order for  success, UNSC  is committed  to working                                                               
with Alaskans to find solutions  that would support a zero-carbon                                                               
energy  system  which  is   safe,  economical,  sustainable,  and                                                               
embraced by the local communities.                                                                                              
                                                                                                                                
10:37:56 AM                                                                                                                   
                                                                                                                                
RICHARD THEILMANN,  representing self,  said that  he is  a "huge                                                               
advocate" for having  a microreactor in Alaska.   Referencing air                                                               
pollution problems,  he stated  that microreactors  would produce                                                               
heat and electricity "at almost zero  risk."  He added that there                                                               
would  be  no  refueling  for  10  or  20  years,  and  then  the                                                               
manufacturer would  take "the material  back out."  He  said, for                                                               
example, the  coal-fired Aurora Plant  in Fairbanks, which  has a                                                               
built-in hot water tapping network  for the local building, could                                                               
be eliminated, reducing  the particulates in the air.   He stated                                                               
if  Eielson  Air Force  Base  were  to acquire  [a  microreactor]                                                               
another coal  plant would be  "out of the  mix."  He  argued that                                                               
the idea  of replacing  one coal plant  with a  microreactor puts                                                               
Alaska  "on  the  map"  by providing  heat  and  eliminating  air                                                               
pollution.                                                                                                                      
                                                                                                                                
10:40:08 AM                                                                                                                   
                                                                                                                                
TRAVIS MILLION, CEO, Copper  Valley Electric Association, stated,                                                               
as  testimony has  indicated, CVEA  is considering  a feasibility                                                               
study to  potentially bring an  advanced micronuclear  reactor to                                                               
the area.   He stated that  over the last couple  of decades CVEA                                                               
has been searching for a  way to resolve wintertime energy needs.                                                               
He said the community has  nearly 100 percent hydropower from May                                                               
to around the  end of October, before "hydro assets  freeze."  He                                                               
described the  summertime electricity rate  as low, or  less than                                                               
20 cents  a kilowatt hour, but  the community is "at  the whim of                                                               
whatever the costs  of fossil fuels are in the  wintertime."  For                                                               
example, he said  that between December and January  of this year                                                               
there was  a 44  percent increase  of fuel  costs.   He continued                                                               
that  there  is  no  predictability from  month  to  month,  and,                                                               
unfortunately,  those rates  are  passed on  [to the  customers].                                                               
Currently  residents are  paying just  over 40  cents a  kilowatt                                                               
hour in the  Copper River Basin and just a  small percentage less                                                               
in Valdez.  To stabilize and  reduce energy costs for the winter,                                                               
he  said CVEA  has looked  at  wind, solar,  biomass, tidal,  and                                                               
other hydro  opportunities, but nothing  solves the problem.   He                                                               
indicated  that  technological   advancements  with  micronuclear                                                               
reactors  could possibly  be the  solution, and  this is  why the                                                               
feasibility study  is going  forward.  He  provided that  each of                                                               
Alaska's delegates  in Washington  D.C. has  expressed excitement                                                               
about  this  opportunity.    He stated  that  U.S.  Senator  Lisa                                                               
Murkowski has been very vocal in  support of Alaska having one of                                                               
the first [microreactor] deployments in the nation.                                                                             
                                                                                                                                
10:43:01 AM                                                                                                                   
                                                                                                                                
PAMELA  MILLER, Executive  Director, Alaska  Community Action  on                                                               
Toxics (ACAT),  testified in  opposition to HB  299.   She argued                                                               
that  micronuclear reactors  are not  subject to  nuclear reactor                                                               
siting and  permitting regulations in Alaska,  which could result                                                               
in  reactors  being constructed  on  lands  which have  not  been                                                               
designated by the  legislature.  She offered that  ACAT holds the                                                               
belief  that nuclear  reactors are  a serious  health and  safety                                                               
concern and  provide a  false solution for  energy needs  and the                                                               
climate crisis.  She expressed  the opinion that nuclear power is                                                               
destructive throughout  its life  cycle with uranium  mining, the                                                               
process  of  enrichment, and  radioactive  waste  disposal.   She                                                               
continued  that  the  mining process  is  done  predominately  on                                                               
Indigenous  lands, and  waste disposal  is an  untenable problem.                                                               
She  stated that  NRC  determined Oklo  Inc.,  a manufacturer  of                                                               
micronuclear   reactors,  has   failed   to  provide   sufficient                                                               
information  concerning potential  accidents and  safety systems.                                                               
She  stated  that  microreactor vendors  are  pushing  to  reduce                                                               
personnel, such as operators and  security officers.  She cited a                                                               
safety  report  by  the  Union   of  Concerned  Scientists  which                                                               
determined that leaving microreactors  without human guards would                                                               
be  not safe.    She  argued that  none  of  these reactors  have                                                               
demonstrated  they  would  be safe  enough  to  function  without                                                               
operators.  She  expressed the opinion that even  a small nuclear                                                               
reactor  would  contain  enough  radioactive  material  to  cause                                                               
problems.  She  expressed concern that the  primary proponents of                                                               
the  proposed legislation  are representatives  from the  nuclear                                                               
power industry who  have a vested interest.  She  stated that the                                                               
state is still addressing the  radioactive contamination from the                                                               
experimental nuclear  reactor at  Fort Greely.   She  opined that                                                               
opening the door  to nuclear power in Alaska again  is unwise and                                                               
dangerous.                                                                                                                      
                                                                                                                                
10:45:25 AM                                                                                                                   
                                                                                                                                
CHAIR SCHRAGE closed public testimony on HB 299.                                                                                
                                                                                                                                
[HB 299 was held over.]