SB 194-ADVANCED NUCLEAR REACTORS    4:49:20 PM CHAIR MICCICHE announced that the final order of business would be SENATE BILL NO. 194, "An Act relating to advanced nuclear reactors." [CSSB 194(CRA) was before the committee.] 4:49:36 PM CODY GRUSSENDORF, Staff, Senator Bishop and the Community and Regional Affairs Committee, Alaska State Legislature, Juneau, Alaska, explained that SB 194 seeks to ensure that advanced nuclear reactor applications in Alaska receive the appropriate level of State oversight. Current statutes allow for nuclear- source development while providing high and thorough oversight on top of the national oversight by the Nuclear Regulatory Commission (NRC). MR. GRUSSENDORF detailed that SB 194 has two parts; the first part defines what advanced nuclear reactors are and the second part reduces barriers to entry while leaving in the thorough regulatory process. SB 194 would only apply to advanced nuclear reactors which use state of the art safety mechanisms, have no moving parts, and will never melt down. He said advanced nuclear reactor technology is safe, and the next testifier will speak to that. He said current Alaska law requires the legislature to designate the site of a nuclear facility. SB 194 would exempt that requirement for advanced nuclear reactors defined in the bill that generate less than 300 megawatts. 4:52:03 PM MARCUS NICHOL, Senior Director, New Reactor Deployment, Nuclear Energy Institute (NEI), Washington, DC, said advanced reactors are maturing rapidly with possible deployment in Alaska. The NEI expects two types of advanced nuclear reactor deployments for commercial applications within the 2025 to 2030 timeframe. He said the first type of advanced nuclear reactors are small modular reactors with less than 300 megawatts of capacity. NEI expects the NRC to approve the first design by September 2020 with the first reactor operating at the Idaho National Laboratory (INL) in 2026. The reactor at the Idaho lab would be a commercial reactor owned by Utah Associated Municipal Power Systems (UAMPS). MR. NICHOL said the other near-term type of advanced reactor is the micro-reactor. Electrical capacity for micro-reactors is 1 to 10 megawatts with designation for remote-area deployment at mines, defense facilities, or remote villages. Micro-reactors can produce heat in addition to power. The first operating license submitted to the Nuclear Regulatory Commission occurred March 2020. NEI anticipates the first demonstrational reactor operating in 2023 and the first commercial deployment around 2026. MR. NICHOL explained that micro-reactor development and deployment is faster than other advanced reactors because of the very small size. He said the Nuclear energy Institute expects other advanced non-light water reactors to become available in the future. 4:54:28 PM MR. NICHOL said NEI expects advanced reactors to be cost competitive when compared to typical diesel generators. NEI sees micro-reactors being cost competitive in remote Arctic villages at its highest cost range and in many markets around the country, including islands, at its lower cost range. He said the nuclear industry expects generating costs for Small Modular Reactors (SMRs) to be competitive in the Lower 48 electrical grid market. Estimated cost per kilowatt for SMRs is in the $0.05 to $0.06 range. MR. NICHOLS said SB 194 is critical for Alaska to attract advanced reactors. Private investment has spent over $1 billion on developing advanced reactor designs. Many private investors see nuclear as the answer to reducing carbon emissions and improving living standards. The federal government is supporting many of the advanced reactor designs through research and development, design, and licensing, or in demonstrations. NEI sees action from many states that are considering legislation to welcome new nuclear into their states. One example is Idaho that has passed resolutions and tax incentives for new nuclear and that happens to be the state where there is an ongoing project in the works. All the actions with advanced reactor designs are strong indicators that help states standout as companies think about their target markets. SB 194 is important as an indicator that Alaska is open for business and welcoming to advanced reactors by reducing unnecessary barriers that creates investment uncertainty and risk. 4:57:44 PM SENATOR COGHILL asked how long it takes for applications to go through the NRC. MR. NICHOL answered that historically it has taken about three years. NEI expects the NRC review to be two years for micro- reactors due to their smaller size and simplicity. SENATOR COGHILL remarked that the NRC is generally geared toward large reactors. He asked if NRC could make a mindset shift to micro-reactors. MR. NICHOL concurred that NRC regulations and experiences are based on large, light-water reactors. However, they have been preparing for advanced reactor designs for several years. NRC has received special funding from Congress to prepare for advanced reactor review and NEI believes the commission is ready. NRC has addressed several technical issues where advanced reactors are slightly different from the large, light-water reactors. 5:00:10 PM CHAIR MICCICHE opened public testimony and said it will remain open for the next hearing. 5:00:28 PM CHAIR MICCICHE held SB 194 in committee.