Legislature(2023 - 2024)BUTROVICH 205
03/18/2024 03:30 PM Senate RESOURCES
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| Audio | Topic |
|---|---|
| Presentation: the Micro-reactor Pilot Program at Eielson Air Force Base | |
| Start | |
| Presentation: the Micro-reactor Pilot Program at Eielson Air Force Base | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 168 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
ALASKA STATE LEGISLATURE
SENATE RESOURCES STANDING COMMITTEE
March 18, 2024
4:21 p.m.
MEMBERS PRESENT
Senator Click Bishop, Co-Chair
Senator Cathy Giessel, Co-Chair
Senator Bill Wielechowski, Vice Chair
Senator Scott Kawasaki
Senator James Kaufman
Senator Forrest Dunbar
Senator Matt Claman
MEMBERS ABSENT
All members present
COMMITTEE CALENDAR
PRESENTATION: THE MICRO-REACTOR PILOT PROGRAM AT EIELSON AIR
FORCE BASE
- HEARD
SENATE BILL NO. 168
"An Act relating to wrongfully seized game."
- BILL HEARING CANCELED
PREVIOUS COMMITTEE ACTION
No previous action to record
WITNESS REGISTER
NANCY BALKUS, Deputy Assistant Secretary
Air Force for Environment, Safety, and Infrastructure (SAF/IEE)
United Stated Department of the Air Force
Arlington, Virginia
POSITION STATEMENT: Presented an overview of the Micro-reactor
Pilot Program at Eielson Air Force Base.
ANDREA KINCAID, Contracting Officer
Defense Logistics Agency (DLA) Energy
Fort Belvoir, Virginia
POSITION STATEMENT: Answered questions related to the Micro-
Reactor Pilot program.
ACTION NARRATIVE
4:21:12 PM
CO-CHAIR CLICK BISHOP called the Senate Resources Standing
Committee meeting to order at 4:21 p.m. Present at the call to
order were Senators Kawasaki, Claman, Co-Chair Bishop, and Co-
Chair Giessel. Senators Wielechowski, Kaufman, and Dunbar
arrived thereafter.
^Presentation: the Micro-reactor Pilot Program at Eielson Air
Force Base
PRESENTATION: THE MICRO-REACTOR PILOT PROGRAM
AT EIELSON AIR FORCE BASE
4:21:48 PM
CO-CHAIR BISHOP announced the consideration of a presentation on
the Micro-reactor Pilot Program at Eielson Air Force Base.
4:22:04 PM
SENATOR WIELECHOWSKI joined the meeting.
4:23:38 PM
NANCY BALKUS, Deputy Assistant Secretary, Air Force for
Environment, Safety, and Infrastructure (SAF/IEE), United Stated
Department of the Air Force, Arlington, Virginia, moved to slide
2 and detailed the Micro-reactor Pilot Program at Eielson Air
Force Base, sponsored by the U.S. Department of the Air Force.
She explained her role as Deputy Assistant Secretary of the Air
Force for Environment, Safety, and Infrastructure (SAF/IEE),
with installation energy being a key focus. The program aims to
assess two primary factors: the viability of micro-reactor
technology and to determine the potential for its scalability
across Alaska. She introduced her "3P" framework for
understanding the program:
1. Pilot: The Eielson micro-reactor is a pilot initiative,
marking the first time advanced nuclear technology is being
pursued in a micro-reactor format through a power purchase
agreement.
2. Partnership: The program requires substantial partnerships
across federal, tribal, state, local, industry, academic,
and community sectors. These partnerships are essential for
the program's success.
3. Pathfinder: The initiative serves to blaze a trail for
licensing a micro-reactor through collaboration with the
Nuclear Regulatory Commission (NRC) and the Defense
Logistics Agency (DLA). The goal is to create a playbook to
demonstrate how villages, communities, and cities in
Alaska, as well as others, can pursue safe, clean, and
affordable energy through a micro-reactor.
4:25:27 PM
MS. BALKUS said her team is working tirelessly with the Defense
Logistics Agency, which handles acquisitions, and the Nuclear
Regulatory Commission, responsible for licensing the reactor.
The Department of Energy (DOE) is also involved to ensure
success at the federal level. The Air Force has partnered with
state and local partners including the Tanana Chiefs Conference,
the Alaska Department of Environmental Conservation (DEC), the
University of Alaska Fairbanks (UAF), the Fairbanks North Star
Borough, the Greater Fairbanks Chamber of Commerce, and the
Alaska State Legislature. She thanked the committee for their
efforts in supporting the advanced nuclear facility deployment
in Alaska through Senate Bill 177, which eases the regulatory
burden while upholding safety and environmental standards. This
initiative aims to provide communities across Alaska with a
reliable and cost-effective power source. Collaboration with DEC
has been crucial for the success of state regulatory processes
for the micro-reactor and to address other joint environmental
challenges. Governor Dunleavy has described the micro-reactor
opportunity as a potential game-changer for energy generation in
Alaska. She expressed gratitude for the opportunity to partner
with key stakeholder groups to pilot this initiative. The Air
Force has been prioritizing investment in critical capabilities
and innovative technologies to increase resilience at its
installations for several years. However, these efforts have
been bolstered by the Secretary of the Air Force's emphasis on
aligning the department for the next Great Power Competition.
This competition describes the strategic environment that
focuses on the pacing threat posed by the People's Republic of
China (PRC) and the acute threat from Russia, both of which
impact the Arctic region where Alaska is located. Alaska is of
immense strategic significance, serving as a key location for
global power projection due to its two large bases, Joint Base
Elmendorf-Richardson (JBER) and Eielson Air Force Base, and
other strategic facilities. Alaska offers the quickest flight
access to both the Indo-Pacific region and western Russia,
making it a critical location for projecting air and space power
into those two critical theaters. She highlighted the impact of
changing environmental conditions. The National Strategy for the
Arctic Region calls for investments in new infrastructure and to
pursue energy security and affordability through the development
of clean technologies that reduce the environmental footprint.
In response, the Air Force has developed an Arctic strategy that
includes an installation investment plan to increase resilience
at Alaska's bases. This plan focuses on investments in power
production, distributed and renewable energy, and technologies
that reduce greenhouse gas emissions, such as micro-reactors.
The technology's ability to deliver power directly where needed,
including both electricity and heat, makes it ideal for isolated
communities, universities, mining operations, industrial
centers, data centers, and defense facilities. She illustrated a
potential future where communities could grow fresh produce in
greenhouses powered by micro-reactors, even in the middle of
winter, or save thousands of dollars annually in fuel costs by
localizing power to a central, reliable micro-reactor. Many
other states are closely watching Alaska's progress in piloting
the micro-reactor at Eielson Air Force Base, as this program
could serve the Department of Defense (DOD) for the benefit of
Alaskans.
4:26:11 PM
SENATOR DUNBAR joined the meeting.
4:26:13 PM
SENATOR KAUFMAN joined the meeting.
4:30:41 PM
MS. BALKUS moved to slide 3 and summarized the Micro-Reactor
Pilot program:
[Original punctuation provided.]
Micro-Reactor Pilot Program
Pilot program will assess viability of micro-reactor
technology to determine potential for scalability
across Alaska
• Strategic Importance:
o Pilot is paving the way to meet challenges
of Great Power Competition and achieve
Department of the Air Force Climate Action
Plan objectives
o Pilot will meet requirements of Executive
Order 13972, Fiscal Year 2019 National
Defense Authorization Act, and Department of
the Air Force Arctic Strategy
• Partnering with Defense Logistics Agency Energy
Office (DLA) to execute a 30-year power purchase
agreement via 10 U.S.C. 2922a
• Commercial vendor will license, own, and operate
5 MWe micro-reactor to deliver electricity and
steam to Eielson Air Force Base
(TIMESTAMP)
MS. BALKUS said these directives are specifically focused on DOD
needs, which is why the Air Force is leading this effort rather
than DOE. The third-party developer will be responsible for
licensing and operating the micro-reactor, which will deliver
both electricity and steam to Eielson Air Force Base. In return,
the Air Force will commit to a long-term purchase of the energy
produced. A power purchase agreement was determined to be the
best contractual vehicle for this initiative, as it is the first
of its kind and aims to demonstrate the potential benefits for
the Air Force, DOD, and the state of Alaska. The selected third-
party developer will assume the risk associated with the
reactor's design, development, licensing, operation, and
decommissioning. This arrangement is considered an investment in
technology maturation and business development. Licensing of the
reactor will be conducted by the Nuclear Regulatory Commission,
ensuring that oversight is not solely in the hands of the third-
party developer. Eielson Air Force Base was chosen as the
preferred location for this pilot due to its mission
compatibility and strategic location in the Arctic, an area with
higher energy costs, making it an ideal region. The installation
has volunteered to support and host the pilot project.
4:32:48 PM
CO-CHAIR GIESSEL inquired about the basic terms of the 30-year
Power Purchase Agreement (PPA) mentioned on slide 3. She sought
clarification on the reference to a commercial vendor,
specifically asking if the company Oklo is still the selected
vendor. She noted that the company had previously been withdrawn
due to procurement challenges and wondered if it had been chosen
again as the vendor for a second time.
4:33:26 PM
MS. BALKUS replied that the PPA was identified as the most
viable approach due to the high costs associated with creating
the first micro-reactor technology. This agreement places the
investment risk on the third-party developer, who would be
responsible for developing and designing the micro-reactor. The
30-year term of the PPA was chosen to allow the company to
spread the capital costs over a period. Regarding the commercial
vendor, she confirmed that a notice of intent to award had been
issued in September. However, a protest was filed with the U.S.
Court of Federal Claims by another bidder, leading to a
rescission of the initial notice. The notice was reissued in
February, but another bidder submitted a protest to the
Government Accountability Office (GAO) in March. The bid protest
with the GAO is ongoing, with a resolution due by June 20.
Protests of this nature typically take up to 100 days to
resolve.
4:35:05 PM
CO-CHAIR GIESSEL mentioned that she had been informed that the
vendor would be required to meet the cost of power generated by
coal and asked if this was the criteria specified in the power
purchase agreement.
4:35:26 PM
MS. BALKUS replied that the question is difficult to answer. She
explained that the agreement is structured to allow the company
to determine the cost over a 30-year contract, but it would not
have reached that stage yet. The agreement would eventually be a
firm fixed-price contract, but they need to complete the design
and licensing phases before developing the cost. She deferred to
Andrea Kincaid, the acquisition partner, to correct or provide
additional details if needed.
4:36:26 PM
ANDREA KINCAID, Contracting Officer, Defense Logistics Agency
(DLA) Energy, Fort Belvoir, Virginia, answered questions related
to the Micro-Reactor Pilot program.
4:36:34 PM
CO-CHAIR GIESSEL asked for clarification about the contract
awarded to the vendor. She noted that it seemed like there was a
second protest related to the awarding of the contract and
requested further details.
4:36:54 PM
MS. BALKUS explained that the most recent protest was filed with
GAO and has up to 100 days to be resolved. She indicated that
she is not yet ready to disclose the nature of the protest, as
she has only reviewed the publicly available notice.
4:37:34 PM
SENATOR CLAMAN asked whether this is currently the only micro-
reactor program going forward in the nation.
4:37:46 PM
MS. BALKUS replied that she is aware of other approaches being
explored, but none so far involve a power purchase agreement.
This makes the initiative unique.
4:38:02 PM
SENATOR CLAMAN asked if this project is likely to comprise of
the first micro-reactor on a military base in the country.
4:38:10 PM
MS. BALKUS confirmed that it is planned.
4:38:16 PM
SENATOR CLAMAN asked about the timeline for seeing additional
micro-reactors at other military bases or locations in the
country, assuming the current project in Alaska proceeds as
planned.
4:38:33 PM
MS. BALKUS explained that she cannot provide a specific timeline
for additional micro-reactors at other military bases or
locations. The current projection on slide four estimates a 10-
year timeline from start to finish, though the slide shows eight
years. The goal of the pilot program is to demonstrate the
licensing process through the Nuclear Regulatory Commission
(NRC) to get one approved. The NRC is updating its licensing
process to be more streamlined for micro-reactors, which are
significantly different from two or three times larger nuclear
power plants. The focus is on the first micro-reactor, and the
experience gained will help expedite the implementation of
subsequent reactors. However, until the first reactor is
completed, a predictable timeline for additional reactors cannot
be established.
4:40:10 PM
MS. BALKUS moved to slide 5 and highlighted the importance of
partnerships:
[Original punctuation provided.]
Partnerships
• Executing DAF 3 P's: Pilot, Partnerships, and
Pathfinder
• Early engagement with public and pilot
stakeholders through Council for Alaska Micro-
reactor Program
• Continued, meaningful, and robust consultation
and coordination with Alaska Native Tribes and
communities to ensure alignment with values of
Alaskans
• Consultation with Alaska Department of
Environmental Conservation (ADEC) on
environmental considerations
• National Environmental Policy Act (NEPA)
agreement with Nuclear Regulatory Commission
(NRC)
• Idaho National Lab facilitating technology
demonstrations
MS. BALKUS highlighted the significance of partnerships in the
pilot program. These initiatives are multi-year efforts
requiring the engagement of various staff, functions, and
organizations. She reiterated the importance of partnerships.
Local community members will also play a critical role. During
the environmental impact study and the National Environmental
Policy Act (NEPA) process, the local community will have an
opportunity to ask questions and raise concerns, of which the
Nuclear Regulatory Commission will take into consideration. The
project is crucial for energy, which powers everyday services
and facilities. Conducting the pilot at Eielson Air Force Base
is strategic due to its shared challenges. While the Air Force
will assume most of the risk and cost, it anticipates questions
and skepticism, and is prepared to develop partnerships. The
goal is to maintain open and transparent dialogue to address
concerns about the technology and process. Feedback and input
from the legislature will be valuable in enriching the decision-
making process to ensure an environmentally responsible
approach. She noted that the list of partners demonstrates the
national effect and interest in this project.
4:43:13 PM
CO-CHAIR GIESSEL inquired about the anticipated cost for the
micro-reactor.
4:43:22 PM
MS. BALKUS replied that there is no cost figure available at
this time. However, a firm fixed value will be negotiated with
the vendor once they complete the design and licensing process.
4:43:49 PM
MS. BALKUS continued speaking to slide 5. She mentioned the
establishment of the Council for the Alaska Micro-Reactor
Program (CAMP), which meets quarterly to update the Fairbanks
community on the pilot program. She invited any interested
committee members to join the program. Currently, participants
include representatives from the Governor's office, ADAC, the
local mayors, UAF, the Tanana Chiefs Conference, and Eielson Air
Force Base leadership. So far, one public town hall meeting has
been held, with plans for more during the environmental impact
study process to ensure community engagement. The council also
includes federal partners such as DLA, the Nuclear Regulatory
Commission, and DOE. The goal is to involve all stakeholders in
the development and implementation of this new technology and
approach.
4:45:19 PM
MS. BALKUS moved to slide 6 and outlined the communication
strategies:
[Original punctuation provided.]
Communication Methods
• Communication Tool(s)
• Eielson Micro-reactor Webpage
• Council for the Alaska Micro-reactor Program
(CAMP) Meetings
• Outreach Videos
• Newsletters
• Media Engagements
Strategic Intent
• "One stop shop" for micro-reactor pilot
information
• Strengthen transparency and coordination among
federal, state, local, and Tribal stakeholders
• Strengthened trust, transparency, and community
awareness
• Delivery of important project updates
• Ensure widest dissemination of information to
expand audience and message accessibility
MS. BALKUS noted that communication for the micro-reactor
program is important due to the introduction of new technology.
She said emphasis is placed on three key pillars: transparency,
frequency, and active partnership. Transparency involves making
sure that all stakeholders are aware of what is happening and
how it is being executed. Frequency ensures that updates are
clear and regular to keep everyone informed. Active partnership
is about ensuring that all stakeholders have a voice in the
process. To support these pillars, several engagement strategies
have been implemented. A dedicated micro-reactor webpage on
Eielson Air Force Base's site provides ongoing updates. CAMP
holds regular meetings to keep the community informed.
Educational outreach is supported by videos developed with a
national lab, which are available on the webpage. Additionally,
a quarterly newsletter will be issued to reach a broader
audience as the project progresses.
4:47:07 PM
CO-CHAIR BISHOP inquired about operation specifics of the five-
megawatt micro-reactor concerning fuel or "battery" change-out
intervals.
4:47:35 PM
MS. BALKUS replied that the advanced reactor design is still
under development, but current estimates suggest that the
reactor will need refueling approximately every eight to ten
years. Initially, the reactor will be delivered to the site as a
pre-fueled assembly, which will then be placed into operation.
After the initial deployment, refueling will not be required
until the eight to ten-year mark. The specific process for
handling used fuel has yet to be determined, as the design
details are not finalized. Options being considered include
whether the entire reactor assembly will be returned to the
manufacturing plant for refueling or if a new unit with pre-
loaded fuel will replace the old one. These details will be
clarified as the design and operational plans progress.
4:48:30 PM
CO-CHAIR BISHOP asked if the speaker was aware of the previous
operational nuclear power plant at a military installation in
Alaska.
4:48:38 PM
MS. BALKUS replied yes, but noted that it used different
technology.
4:48:44 PM
CO-CHAIR BISHOP noted that the state installed an "off-the-shelf
A-Model" and asked if there were any lessons learned that could
guide the current process.
4:49:00 PM
MS. BALKUS replied that DOD has been studying nuclear power
plants both in the United States and worldwide. It is
collaborating closely with Idaho National Labs, which is testing
three different approaches to advanced nuclear reactors. This
partnership ensures that they incorporate the best practices and
lessons learned into the development of the technology.
4:49:41 PM
CO-CHAIR BISHOP acknowledged that the proposed timeline for the
micro-reactor project is aggressive but expressed support for
the initiative given the thorough checks and balances in place.
He highlighted historical examples to emphasize the importance
of rapid action, noting that during World War II, Eielson Air
Force Base was surveyed and a contract was executed within two
weeks under wartime conditions. He referenced the swift
production of the North American P-51 Mustang, built in 90 days,
which played a crucial role in the Allied victory over Germany.
He stressed the importance of leveraging historical lessons and
adapting to current global threats, such as those posed by
China, to accelerate the process safely and efficiently.
4:51:19 PM
MS. BALKUS addressed a question about the power output of the
pilot project, clarifying that the initial micro-reactor will be
designed to produce five megawatts. The installation currently
consumes between 15 to 18 megawatts of power. The pilot will
start with this smaller scale to prove the technology, with
plans to scale up after demonstrating its effectiveness and
safety. She emphasized that the goal is to be cautious and
effective while keeping the option to expand the system once its
success is established.
4:52:39 PM
There being no further business to come before the committee,
Co-Chair Bishop adjourned the Senate Resources Standing
Committee meeting at 4:52 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| Presentation- Micro-reactor Pilot Program at Eielson Air Force Base.pdf |
SRES 3/18/2024 3:30:00 PM |
|
| SB 168 CS Workdraft Version R.pdf |
SRES 3/18/2024 3:30:00 PM |
SB 168 |
| SB168 Explanation of Changes Ver. A to Ver. R.pdf |
SRES 3/18/2024 3:30:00 PM |
SB 168 |