United States. Congress. on Atomic Energy committee MODIFICATIONS IN THE PROPOSED ARRANGEMENTS DEMONSTRATION PROJECT HEARINGS BEFORE THE JOINT COMMITTEE ON ATOMIC ENERGY NINETY-FOURTH CONGRESS SECOND SESSION ON CONSIDERATION OF MATTERS WHICH RELATE TO MODI- PROJECT APRIL 14 AND 29, 1976 Printed for the use of the Joint Committee on Atomic Energy 72-818 O U.S. GOVERNMENT PRINTING OFFICE WASHINGTON: 1976 For sale by the Superintendent of Documents, U.S. Government Printing Office Washington, D.C. 20402 - Price $4.410 AF25 A8 1976c JOINT COMMITTEE ON ATOMIC ENERGY JOHN O. PASTORE, Rhode Island, Chairman SENATE HENRY M. JACKSON, Washington HOUSE OF REPRESENTATIVES JOHN YOUNG, Texas TENO RONCALIO, Wyoming JOHN B. ANDERSON, Illinois GEORGE F. MURPHY, Jr., Executive Director ALBION W. KNIGHT, Jr., Professional Staff Member MICHAEL R. KEPPEL, GAO Consultant (II) Montoya, Hon. Joseph M., member, Joint Committee on Atomic Energy: Coughlin, Hon. Lawrence, a Representative in Congress from the State of Dembling, Paul G., General Counsel, accompanied by Richard Kelley, Associate Director; Ralph Carlone, Assistant Director, Resources and Economic Development Division; and Richard Conway, attorney. Seamans, Dr. Robert C., Jr., Administrator, accompanied by Dr. G. W. Cunningham, Deputy Director for Technology, Division of Reactor Development and Demonstration; M. C. Greer, Controller; and Lloyd W. Sides, Assistant General Counsel, Energy Research and Development Behnke, Wallace B., executive vice president, Commonwealth Edison Co., and Chairman of the Board of the Project Management Corp. Pastore, Hon. John O., chairman, Joint Committee on Atomic Energy: Opening remarks at open meeting of Thursday, April 29, 1976----- Letter dated May 27, 1969: R. E. Hollingsworth, General Manager, Atomic Energy Commission, to Chairman Chet Holifield, Joint Committee on Atomic Energy relative to initial plans toward LMFBR demonstration plant cooperative arrangement__. Statutory criteria for fourth round arrangements under the Commission's power reactor demonstration program__. GAO Report (B-164105): Proposed Changes to the AEC's Arrangement for Carrying Out the Liquid Metal Fast Breeder Reactor Demonstration Appendix: Analysis of proposed changes to cooperative arrangement__ Appendix: Responsibility for technical supervision of the nuclear Further comments on proposed arrangement. Appendix: Comments on AEC's response to concerns expressed by GAO and JCAE regarding proposed arrangement--- Extract from part 4, ERDA authorizing legislation, fiscal year 1976: Letter dated March 10, 1975. from Dr. R. C. Seamans, Jr., Administra- tor, ERDA, to Chairman Pastore, JCAE, relative to Clinch River (III) GAO report (RED-75–361), April 4, 1975: Comments on ERDA's proposed arrangement for the Clinch River breeder reactor demonstration plant project__. Letter dated April 7, 1976: G. F. Murphy to Dr. Seamans, requesting Letter dated April 17, 1975: R. D. Thorne, ERDA to G. F. Murphy, Jr., Enclosure: Suggested changes (ERDA) to amended criteria___. Enclosure 1. Modification No. 1 to AT (49-18)-12_ Enclosure 3. Contract No. AT (49-18)-14 between AEC and BRC.... Enclosure 4. Contract No. AT (49-18)-12 among AEC, TVA, Common.wealth Edison Co., and Project Management Corp-- 237 249 Enclosure 5. Revised Program Justification Data Arrangement No. 72-106 (February 1975). 353 Letter dated Feb. 2, 1976: R. W. Roberts, ERDA, to Chairman Pastore, 366 Letter dated Feb. 4, 1976: R. W. Roberts, ERDA, to Chairman Pastore, GAO letter report dated March 26, 1976, to Representative John E. Moss Letter dated March 31, 1976: R. W. Roberts, ERDA, to Comptroller Letter dated April 23, 1976: Rep. Lawrence Coughlin to G. F. Murphy, Jr., 369 370 379 394 Additional comment by JCAE relative to added testimony by Repre- 395 Modification No. 1 to Contract No. AT (49-18)-14_ 403 Modification No. 1 to Contract 49-18-12-1-. 417 Pertinent Contract Provisions Regarding ERDA Control....... 462 Letter dated April 14, 1976: Senator John Tunney to Representative Moss 509 511 Appendix: Letter dated June 11, 1975: M. C. Greer, Controller, ERDA, to Chairman Pastore, with budget information__. 523 The Joint Committee met at 10:30 a.m., pursuant to notice, in room S-407, the Capitol, Senator Joseph M. Montoya presiding. Present: Senators Montoya and Baker; Representatives Young, McCormack, Moss, and Anderson. Also present: George F. Murphy, Jr., executive director; James B. Graham, assistant director; William C. Parler, committee counsel; James K. Asselstine, assistant counsel; Norman P. Klug and Stephen J. Lanes, technical consultants, and Michael R. Keppel, ĜAO consultant. OPENING STATEMENT BY SENATOR MONTOYA Senator MONTOYA. The hearing is called to order. Today the Joint Committee meets to consider certain matters which relate to modifications in the proposed arrangements for the Clinch River breeder reactor demonstration project. This is a project which was authorized in 1970 by section 106 of Public Law 91-273 and for which substantial additional governmental funds were authorized and appropriated last year by both Houses of Congress. The argument in justification for this project is that it is an important element in this Nation's overall program to solve its long-term energy needs, and, accordingly, it has been supported by both the administration and the Congress as a high-priority project. The Joint Committee has considered the Clinch River project on numerous occasions. Last year, on March 10, 1975, the Administrator of ERDA sent to the Congress a legislative proposal which would amend the authorization for the project.1 This proposed amendment was made, in part, to reflect the fact that the estimated cost of the project had escalated to $1.736 billion in 1975, but the funds to be supplied by the utility participants [about $250 million] had not increased. This resulted in a situation where the utilities' financial contributions were not of such magnitude as to continue to justify the management role which the utilities have under 1 See page 58. (1) |