Wednesday, May 04, 2011

Rolling Stone on America's Nuke Industry, Safety, and the revolving door of the toothless NRC

http://www.rollingstone.com/politics/news/america-s-nuclear-nightmare-20110427

Some choice excerpts:

NRC has long served as little more than a lap dog to the nuclear industry, unwilling to crack down on unsafe reactors. "The agency is a wholly owned subsidiary of the nuclear power industry," says Victor Gilinsky, who served on the commission during the Three Mile Island meltdown in 1979.

Even President Obama denounced the NRC during the 2008 campaign, calling it a "moribund agency that needs to be revamped and has become captive of the industries that it regulates."
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In the years ahead, nuclear experts warn, the consequences of the agency's inaction could be dire. "The NRC has consistently put industry profits above public safety," says Arnie Gundersen, a former nuclear executive turned whistle-blower. "Consequently, we have a dozen Fukushimas waiting to happen in America."
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In his 2012 budget, President Obama included $54 billion in federal loan guarantees for new reactors — far more than the $18 billion available for renewable energy.

Without such taxpayer support, no new reactors would ever be built. Since the Manhattan Project was created to develop the atomic bomb back in the 1940s, the dream of a nuclear future has been fueled almost entirely by Big Government. America's current fleet of reactors exists only because Congress passed the Price-Anderson Act in 1957, limiting the liability of nuclear plant operators in case of disaster. And even with taxpayers assuming most of the risk, Wall Street still won't finance nuclear reactors without direct federal assistance, in part because construction costs are so high (up to $20 billion per plant) and in part because nukes are the only energy investment that can be rendered worthless in a matter of hours. "In a free market, where real risks and costs are accounted for, nuclear power doesn't exist," says Amory Lovins, a leading energy expert at the Rocky Mountain Institute. Nuclear plants "are a creation of government policy and intervention."

They are also a creation of lobbying and campaign contributions. Over the past decade, the nuclear industry has contributed more than $4.6 million to members of Congress — and last year alone, it spent $1.7 million on federal lobbying. Given the generous flow of nuclear money, the NRC is essentially rigged to operate in the industry's favor. The agency has plenty of skilled engineers and scientists at the staff level, but the five commissioners who oversee it often have close ties to the industry they are supposed to regulate. "They are vetted by the industry," says Robert Alvarez, a former senior policy adviser at the Energy Department. "It's the typical revolving-door story — many are coming in or out of jobs with the nuclear power industry. You don't get a lot of skeptics appointed to this job."
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Jeffrey Merrifield, a former NRC commissioner who left the agency in 2007, is a case in point. When Merrifield was ready to exit public service, he simply called up the CEO of Exelon, the country's largest nuclear operator, and asked him for a job recommendation. Given his friends in high places, he wound up taking a top job at the Shaw Group, a construction firm that builds nuclear reactors — and he's done his best to return the favor. During the Fukushima disaster, Merrifield appeared on Fox News, as well as in videos for the Nuclear Energy Institute, the industry's lobbying group. In one video — titled "Former NRC Commissioner Confident That Building of New U.S. Nuclear Plants Should Continue" — Merrifield reassures viewers that the meltdown in Japan is no big deal. "We should continue to move forward with building those new plants," he says, "because it's the right thing for our nation and it's the right thing for our future."
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America has 31 aging reactors just like Fukushima, and it wouldn't take an earthquake or tsunami to push many of them to the brink of meltdown. A natural disaster may have triggered the crisis in Japan, but the real problem was that the plant lost power and was unable to keep its cooling systems running — a condition known as "station blackout." At U.S. reactors, power failures have been caused by culprits as mundane as squirrels playing on power lines. In the event of a blackout, operators have only a few hours to restore power before a meltdown begins. All nukes are equipped with backup diesel generators, as well as batteries. But at Fukushima, the diesel generators were swamped by floodwaters, and the batteries lasted a mere eight hours — not nearly long enough to get power restored and avert catastrophe. NRC standards do virtually nothing to prevent such a crisis here at home. Only 11 of America's nuclear reactors have batteries designed to supply power for up to eight hours, while the other 93 have batteries that last half that long.
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Indeed, the NRC's "safety-last" attitude recalls the industry-friendly approach to regulation that resulted in the BP disaster in the Gulf of Mexico last year. Nuclear reactors were built to last only 40 years, but the NRC has repeatedly greenlighted industry requests to keep the aging nukes running for another two decades: Of the 63 applications the NRC has received for license extensions, it has approved all 63.
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According to a 2003 study, it would cost as much as $7 billion to move the spent fuel out of the pools and into more secure containers known as dry-cask storage. So why hasn't the NRC required such a precaution? "Power companies don't want to pay for it," says Alvarez. "They would rather let the public take the risk." Gilinsky offers another explanation. "After insisting for years that spent fuel pools were not a problem," he says, "the NRC doesn't want to admit what everyone knows after Fukushima: They were wrong."
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Some critics argue that it's time for an outside agency, such as the National Academy of Sciences, to take an independent look at the safety and security of America's aging nukes. A better idea might be to simply repeal the Price-Anderson Act and force the nuclear industry to take responsibility for the risks of running these old plants, rather than laying it all off on taxpayers. The meltdown in Japan could cost Tokyo Electric some $130 billion — roughly three times what the Deepwater Horizon spill cost BP. If nuke owners had to put their own money where their atoms are, the crumbling old reactors would get cleaned up or shut down in a heartbeat.
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Instead, by allowing the industry to cut safety margins in exchange for profits, the NRC is actually putting the "nuclear renaissance" itself at risk. "It has not been protesters who have brought down the nuclear industry," said Rep. Ed Markey of Massachusetts. "It has been Wall Street." Wind and natural gas are already cheaper than nukes, and the price of solar is falling fast. And with each new Fukushima, the cost of nukes — as well as the risks — will continue to rise.


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