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22 ENERGYBIZ MAGAZINE July/August 2005
The nation’s reliance on foreign energy
sources, predominantly oil, is a growing concern
to many. So is global warming, believed to be
caused by burning fossil fuels.
At the same time, many energy leaders have
been pointing out that the nation’s nuclear fleet
of 103 units has been producing a reliable power
supply with few problems for many years. On top
of that, nuclear power plant designers say they have
been putting the finishing touches on designs for
plants that will be even more efficient and safe.
As a result of these converging factors, Nils
Diaz, the chairman of the U.S. Nuclear Regulatory
Commission (NRC), which oversees the operation of
nuclear power plants, believes that as many as 100 new
nuclear units will be needed in the next two decades.
A massive investment will be needed if nuclear is going
to continue to provide the one-fifth share of electricity
it represents today. That’s because a growing and evermore
technologically sophisticated economy will soak
up huge amounts of electricity.
Diaz, now 67, was named chairman of the
NRC by President Bush two years ago. He recently
talked to EnergyBiz about his vision for the future.
His comments, edited for style, follow.
: You recently declared that 100 new nuclear
plants may be needed in this country. Please elaborate.
DIAZ: According to studies from the U.S. Energy
Information Administration and Nuclear Energy
Institute, about 100 nuclear power plants would
be needed if nuclear is to remain 20 percent of our
generation.
: Is that predicated on the retirement of
existing facilities and a 50 percent rise in demand?
DIAZ: No. This is predicated on the present rate
of demand increase and the addition of 100,000
megawatts of base-load electricity, not on the
retirement of existing facilities.
: If that scenario is correct, is your agency
prepared to step up licensing to allow that level of
new activity?
DIAZ: We are prepared to implement our PART 52
advanced licensing process, which was made law in
1992 by Congress. We have three legs of a stool that
are combined to facilitate the regulatory oversight
over the licensing process. First, there are standardized
designs. People can actually pre-certify a design
and bank it. Second, there are early site permits. If
a utility says it’s considering a site for a power plant,
then we conduct the site-specific analysis and environmental
analysis. There is adjudication, a hearing
on that process, because it is a major licensing decision.
A utility can then bank the site for construction
of a nuclear power plant. The third and final part of
the process is where the payoff for the utilities lies.
This is the so-called combined construction and
operating license, which is referred to as a COL,
when the utility applies for a permit to construct and
operate a facility. It is one application for both construction
and operation. Utilities will actually use a
design and a site that have been approved.
: What’s the intent here?
DIAZ: In the 1970s and 1980s, too many plants
were custom designed. Too many plants went to sites
that were green sites, and there was significant environmental
opposition. Too many issues got delayed;
too many hearings were very burdensome. Congress
passed a law that said, NRC, thou shalt make this
process fair and equitable yet easier to follow so
everybody knows their rights and responsibilities.
: Do you in fact have standardized designs
that have been approved?
DIAZ: We have three standardized designs that
have been approved: two in the late 1990s and one
in early 2001. We are about ready to do the last
one, called the AP1000 Westinghouse. The design
approval has been done, and the rule-making is
out. If everything goes according to plan, that will
also be on the shelf by this December.
: Who are the major firms working on
these designs?
DIAZ: Right now, we have Westinghouse and General
Electric. However, we anticipate that Framatome
Areva of France will be applying very shortly.
: You have had a number of utilities applying
for site permits.
DIAZ: We had three early site permits that have
been applied for — all of which are now in the stages
of adjudication. Barring any substantial issues that
we do not know about – all three should be in court
and be resolved between June and December 2006.
: Who are the utilities?
DIAZ: Entergy, Exelon, and Dominion.
: Do you have any indication that other
utilities are waiting to apply?