May/June 2020

ECA Staff Mid-Year Roundup

In recent months, our lives have changed drastically due to the COVID-19 pandemic, posing significant public health challenges to communities across the country. For much of this year, we have expanded our focus to not only safety at DOE sites, but also to safety in our communities and at home.

Amidst the uncertainty, ECA has sought creative ways to continue doing our work to amplify local concerns at DOE sites. In recent months we have facilitated video conferences with DOE leadership, Congressional staff, and intergovernmental groups to discuss ongoing cleanup, public safety, national defense and nuclear energy matters. ECA will hold its Board of Directors meeting on June 18. We have continued outreach as an organization—and in coalitions with others—to promote community interests through additional cleanup funding legislation and openness in Defense Nuclear Facilities Safety Board communication to the public. Further, the ECA Board leadership and issue-specific subcommittees have continued to meet virtually to share information and best practices.

As we move into the second half of the year, there is a lot of work to be done federally and locally.

In Congress, the Senate just kicked off the National Defense Authorization Act (NDAA) process (the bill that authorizes NNSA and defense cleanup activities at DOE sites), and the House will begin drafting its NDAA bill in the coming weeks. Appropriations bills (funding for all DOE activities) will start to take shape this month and in July, according to appropriations chairwoman Nita Lowey. By the end of July, Senate leadership has indicated that we may see another stimulus bill (or at least negotiations), which is likely to include more assistance for state and local governments. We also cannot forget that the 2020 elections loom over all of these legislative tasks, creating a more complicated political environment. In the past two presidential election cycles, Congress ultimately passed continuing resolutions instead of normal appropriations bills. (See the Legislative Update below)

DOE sites are beginning to re-open and enter Phase 1 of their return to “normal” operations (NNSA has continued to operate). As they begin recalling workers to cleanup sites and laboratories, ECA is continuing to monitor ongoing issues such as new contamination found at Los Alamos, which has highlighted the need for better coordination between offices within the Department. Additionally, DOE announced a new plan to restore U.S. nuclear energy leadership, and ECA participated in a recent webinar featuring Secretary Dan Brouillette. Local communities will need to play a major role for this plan to reach its full potential (see the story below titled, Want to Restore American Nuclear Leadership? Look to Local Communities)

ECA has plans for more meetings this year including the National Cleanup Workshop in September in coordination with EFCOG and DOE, the Intergovernmental meeting in November with NGA, ECOS, NCSL, NAAG, and STWG and other meetings virtually (workforce development), which will center around continued progress and engagement between local communities and DOE. The communities want to be involved, and they are ready to do their part to help the country recover from the impacts of the Coronavirus.

Legislative Update

NDAA talks begin on Capitol Hill, with appropriations to follow

The Senate Armed Services Committee began its markup of the FY 2021 National Defense Authorization Act (NDAA) on June 8, and the full committee approved the bill on June 10. According to an executive summary, the Senate version authorizes $740.2 billion for national defense, of which $25.9 billion would be allocated for the Department of Energy’s (DOE) national security programs. The bill authorizes the National Nuclear Security Administration’s (NNSA) budget request of $19.8 billion (remember authorization is not funding and the same amount would need to be included in an appropriation bill). The bill would authorize additional funding for expanding plutonium pit production at Los Alamos National Laboratory and the Savannah River Site ($1.4 billion total).

In FY 2020, the final NDAA authorized $23 billion for DOE. The House will mark up its version of the NDAA the week of June 22.

The Senate will also begin working on annual appropriations bills the week of June 22, and the House will hold its markups the week of July 6. By June last year, the House had already passed a package of appropriations bills that included funding for DOE. This year, however, both chambers canceled several weeks of in-session days due to COVID-19. House Majority Leader Steny Hoyer has still expressed confidence that the House will pass all 12 spending bills for FY 2021 by the end of July.

Nuclear energy legislative activity in the House

So far this session, while Congress has focused mainly on COVID-19 relief legislation, the House has taken some action to address nuclear energy issues.

In March, the House Science, Space, and Technology Subcommittee advanced the Nuclear Energy Research and Development Act (H.R. 6097) to the full committee, moving it one step closer to a vote by the chamber. The bill, introduced by Rep. Conor Lamb (D-PA), “expands critical research programs at the Department of Energy for a broad range of commercial nuclear reactors, lowering the price of electricity and extending the lifespan of these critical assets” and “encourages the development of new, advanced reactor designs and funds training programs for the next generation of engineers.”

In May, Rep. Randy Weber (R-TX) introduced the Nuclear Energy for the Future Act (H.R. 6796), which would support advanced nuclear research and development programs and infrastructure. The bill would allow DOE to use public-private partnerships to “achieve faster and cost-effective development of advanced nuclear energy technologies toward commercial readiness.”

This month Rep. Paul Tonko (D-NY), chairman of the House Environment and Climate Change Subcommittee, discussed the role of nuclear energy in net-zero emissions legislation. Rep. Tonko commented, “Clean energy of any kind, including our nuclear energy, is an important factor as we go forward,” and said the subcommittee will hold additional hearings on the issue as the bill is crafted.

Potential Phase 4 stimulus legislation in July

It has been over a month since Congress passed its last major coronavirus relief bill, the CARES Act, which provided $150 billion for states and larger local governments. In May, the House passed the HEROES Act, which is the chamber’s starting point for Phase 4 negotiations. The bill would provide $375 billion for local governments, $56 billion of which is allocated for smaller local governments such as cities, towns, and villages (identified in the bill as general local governments in nonentitlement areas). Additionally, $187.5 billion would be provided for all U.S. counties, distributed proportionally based on population size.

While the bill is not expected to pass in the Senate, according to Senate Majority Leader Mitch McConnell (R-KY), Senate leaders and administration officials have suggested that there could be negotiations on another relief bill in late July.

Politico recently reported, “McConnell has publicly predicted talks on the next bill won’t pick up for about a month and has told Senate Republicans that he prefers to wait until after the July 4 recess to work on a package…” Sen. Roy Blunt (R-MO) commented, “End of July … is frankly my sense of when I think we’ll have all the information we need to put the next bill together. And it might be about the time when all of the money from the [previous] bills has been spent.”

In a Senate hearing in June, Treasury Secretary Steven Mnuchin noted, “I definitely think we are going to need another bipartisan legislation to put more money into the economy,” but he did not clarify whether the additional funding would include assistance for state and local governments.

The passage of another relief bill relies heavily on the Congressional calendar. The Senate is scheduled to have recess between July 3rd to 17th and August 10th to September 7th, leaving just three weeks for Congress to negotiate and pass the legislation this summer.

Changes in Senate Appropriations Committee staff

Recently several changes have occurred on the appropriations committee on the Senate. In the majority, Adam DeMella announced that he is moving to a job with Oak Ridge National Laboratory and Nora Khalil (formerly at NNSA) will take over as Majority Clerk. Further, as we announced last month, Christopher Hanson is a new Nuclear Regulatory Commissioner and Jen Becker-Pollet will fill his former role as Professional Staff Member on the Senate Appropriations Energy and Water Development Subcommittee.

Want to Restore American Nuclear Leadership? Look to Local Communities

In late May, ECA participated in a DOE webinar, “Trump Administration Strategy to Restore American Nuclear Energy Leadership: A DOE and Industry Discussion.” U.S. Secretary of Energy Dan Brouillette and Assistant Secretary for Nuclear Energy Rita Baranwal were among speakers addressing the need and strategy for restoring America’s leadership in nuclear energy and technology at home and internationally.

Secretary Brouillette noted in his opening remarks that the U.S. nuclear program is “essential for national security,” a sentiment echoed by John Hamre, President and CEO of the Center for Strategic and International Studies (CSIS) who asserted, “We cannot support a nuclear navy if we do not have a commercial nuclear industry.” Discussion followed on how to build a robust domestic supply chain, develop competitive financing and replicate the bipartisan support in the U.S. Congress at the state level.

When asked what needs to be done, Nuclear Energy Institute (NEI) President and CEO Maria Korsick emphasized the need to support development of small modular reactors (SMRs), advanced reactors and ensure fuel for both the current and future fleet of nuclear reactors. But Clarence “Bud” Albright, President and CEO of the U.S. Nuclear Infrastructure Council, added, “We’ve lost the ball on deployment. We can develop all we want but need to be able to deploy it,” which underscored for ECA the role our communities have played and can play again to support a renewal of the nuclear industry in the U.S.

ECA Communities Taking the Lead on New Nuclear Development Projects

Since the beginning of the Manhattan Project, ECA communities have supported DOE’s federal facilities and the country’s national security mission. The communities around sites such as Hanford, Oak Ridge, Idaho Falls, Los Alamos, and Savannah River, have provided more than a generation of skilled workers, local leadership and cooperation. Through the history of these communities, local leaders understand and can be champions when faced with the challenges (real or perceived) of nuclear expansion: public acceptance, trust in DOE and the nuclear industry, safety and proliferation concerns, comparative energy costs and waste management.

Most importantly, these communities already demonstrate an interest in hosting new energy production and related manufacturing facilities. Many are currently pursuing new nuclear opportunities. For example, in communities around DOE national laboratories:

Los Alamos County and the City of Idaho Falls are involved with Utah Associated Municipal Power Systems (UAMPS) that will own the first NuScale small modular reactor (SMR). It will be sited at the Idaho National Laboratory and will be operated by Energy Northwest, a company based in Richland, Washington, near the Hanford site.
The City of Oak Ridge, Roane County, and other communities surrounding the Oak Ridge National Laboratory (ORNL), will support the laboratory’s partnership with the Tennessee Valley Authority and DOE to improve the economic feasibility of potentially licensing, building, operating and maintaining one or more advanced reactors, including an SMR.
In Aiken County, SC, and neighboring communities, there is support for the Advanced Manufacturing Collaborative (a partnership with SRNL, Economic Development Partnership, University of South Carolina - Aiken) that will be a hub for manufacturing, fostering modern industrial practices and advancing new technologies and workforce training.

ECA communities were built alongside the Manhattan Project and there is a sense of pride related to supporting the country’s national security mission. They do not say “not-in-my-backyard;” rather, they ask how to help support research, development and demonstration projects like the Versatile Test Reactor, planned for INL, that will “allow DOE to modernize its essential nuclear energy research and development infrastructure” by testing advanced nuclear fuels, materials, instrumentation, and sensors.

Energy communities are actively coordinating with DOE and industry to ensure their schools, community colleges and universities develop the right programs to attract and train the next generation of nuclear workers. Many of those future workers are likely growing up right now with friends and families employed at the federal facilities that are so integral to the past but also to the future.

As DOE and the nuclear industry work on the strategy to restore American nuclear leadership, they would be wise to reach out and engage again meaningfully with the communities that have long been partners in achieving this mission.

DOE’s Fact Sheet on the Strategy to Restore American Nuclear Energy Leadership can be found HERE. The full report to the President can be found HERE.

Government Accountability Office

GAO denies Hanford contract challenge

In May, the Government Accountability Office (GAO) denied a protest over a $10 billion environmental cleanup deal for the Hanford Site, saying the U.S. Department of Energy (DOE) reasonably chose a higher cost proposal submitted by the AECOM-led Central Plateau Cleanup Company. The full decision, which was made publicly available on May 13, is available here.

Project W Restoration, LLC (PWR) protested the award of a contract to Central Plateau Cleanup Company, LLC (CPC) for the environmental cleanup of radioactive and hazardous waste at the Hanford Site. PWR argued that the agency’s "best-value tradeoff and source selection decision was unreasonable."

In its decision, GAO wrote, "Although PWR disagrees with the agency's evaluation, the record demonstrates that at every step in the procurement, the agency considered all of the information submitted by the offerors and available to the agency, and issued well-reasoned and rational evaluation reports before making a best-value tradeoff that extensively highlighted key discriminators between these proposals."

Recommendations for post-cleanup challenges

The National Defense Authorization Act for Fiscal Year 2020 required GAO to review the Office of Legacy Management’s (LM) operations and environmental liability. In its report, GAO found that LM has not planned how it will “handle new cleanup work that is outside its expertise” and “assess and mitigate the effects of climate change on its sites.”

LM’s estimated environmental liability for FY 2019 was $7.35 billion and is expected to grow as more sites are transferred to the office (it is expected to receive 52 additional sites by 2050). Officials within LM told GAO some of the challenges in maintaining the sites include “the performance of remedies that contain or reduce contamination,” in addition to environmental conditions and regulatory requirements.

GAO made three recommendations:

The Secretary of Energy should direct the Director of LM and the Assistant Secretary of the Office of Environmental Management to develop agreements and procedures for identifying and addressing circumstances at LM sites that require new cleanup work beyond the scope of LM's mission, capabilities, and resources.
The Secretary of Energy should direct the Director of LM to work with the Nuclear Regulatory Commission to develop agreements and procedures for identifying and addressing circumstances at LM sites that require new cleanup work beyond the scope of LM's mission, capabilities, and resources.
The Secretary of Energy should direct the Director of LM to, as called for in LM's strategic plan, develop plans to assess the effect of climate change on LM's sites and to mitigate any significant impacts. These plans should incorporate principles from GAO's Disaster Resilience Framework, as appropriate.

Other recent GAO reports:

NNSA Needs to Incorporate Additional Management Controls Over Its Microelectronics Activities, June 9, 2020: GAO recommends that NNSA incorporate additional management controls, such as developing an overarching management plan, to better oversee and coordinate its microelectronics activities.
DOE Is Pursuing Pretreatment Alternatives, but Its Strategy Is Unclear While Costs Continue to Rise, May 12, 2020: GAO is making two recommendations, including that DOE ensure that its analysis of alternatives for pretreatment of high-level waste include a mission need statement and a life-cycle cost estimate for the baseline alternative. According to GAO, “DOE has spent $752 million (as of FY 2018), mostly to preserve and maintain [the pretreatment facility], and another $400 million pursuing facility alternatives to try to meet a 2023 goal. DOE has not used the best available methods to determine which alternative to pursue.”

National Cleanup Workshop Update

ECA, EFCOG, and DOE plan to proceed with holding the Cleanup Workshop absent any federal travel restrictions and/or local decisions to prohibit conferences.

We are committed to implementing sanitary, health, and safety measures with the hotel and encourage attendees to follow CDC guidelines at the workshop.

ECA and EFCOG are continuing to monitor the rapidly changing situation related to COVID-19. We are prioritizing health and safety concerns in the planning of the 2020 National Cleanup Workshop.

In order to meet certain health and safety protocols, the workshop will have a limited number of registrations available. In the coming weeks, we will announce next steps for in-person and online registration.

Please contact Autumn Bogus at abogus@la-inc.com or (865) 294-5129 with any questions about registration or sponsorships.

EM Contract Update

There are 11 EM contracts expiring in 2020 (as of May 28, 2020):

Decontamination and Decommissioning Project for the East Tennessee Technology Park – ending 7/31/20
Environmental Program Services in Nevada – ending 7/31/20
Hanford 222-S Laboratory Analysis and Testing Services – ending 9/20/20
Paducah Infrastructure Services – ending 9/30/20
Hanford Site Central Plateau Remediation – ending 9/30/20
Tank Operations Contract at Hanford – ending 9/30/20
Design, Construction and Commissioning of the Salt Waste Processing Facility – ending 9/30/20
Management and Operation (M&O) of the Savannah River Site – ending 9/30/20
Transuranic Waste Processing at Oak Ridge – ending 10/26/20
Hanford Site Infrastructure Services – ending 11/25/20
Carlsbad Technical Assistance Contract – ending 12/4/20

ECA Bulletin: Mid-year roundup, legislative update, and restoring nuclear leadership