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Stevenson 1
Katrina Stevenson
April 29, 2016
Global Nexus Initiative: The Future of Nuclear Power in the United States
The recent concern of pursuing clean energy in the United States has encouraged the
private and public sector to contribute to research and development of nuclear energy reactors.
The United States government has established programs through the Department of Energy to
provide funding for private companies showing significant progress and to help maneuver
through the licensing program of the Nuclear Regulatory Commission. However, the private
sector has experienced many difficulties with the Nuclear Regulatory Commission. As a result,
Congress has proposed reforming the licensing program of the Nuclear Regulatory Commission
to help expedite licensing of programs. A more harmonious relationship between the private and
public sectors will help promote a stronger nuclear energy industry in the United States.
Ultimately, the future of nuclear power in the United States will depend on the success of
Congressional legislation and the reformation of the Nuclear Regulatory Commission to support
new startups and venture capitalists pursuing nuclear energy research.
United States Naval Nuclear Fleet
The introduction of the United States Naval Nuclear Propulsion Program has been successful in
maintaining a nuclear submarine and aircraft fleet responsible for sustaining of the nuclear
reactors in the United States. By supporting the naval fleet, the commercial nuclear energy
industry can learn from the safety and security of the nuclear navy.
The United States Department of Navy controls roughly half of the nuclear reactors in the
United States and maintains the oldest and most reliable nuclear energy program. With roughly
100 reactors under the supervision of the United States Navy, the department powers roughly 90
submarines and aircraft carriers. Together, the naval fleet produces electricity, heat, freshwater
and propulsion accumulating to over 5,400 reactor years and 130 million miles. In addition, the
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naval fleet is renowned for its safety record. The safety record for the Navy has set the precedent
for future nuclear programs both civilian and government.1 The thousands of individuals living
among submarines powered by nuclear energy have not been affected adversely regardless of
their close proximity.
The United States Department of Navy began researching nuclear-powered aircrafts and
submarines starting in the 1940s, but did not complete its first nuclear-powered submarine until
1955. After a significant amount of research and development, the Department of Navy
determined the most efficient method of powering naval aircrafts and submarines is to rely on
nuclear energy.2 As a result, the government established the Navy Nuclear Propulsion Program
under the National Nuclear Security Administration of the Department of Energy to provide
military and technological support to a variety of governmental nuclear programs. The
Presidential Executive Order 12344 reaffirmed the legitimacy of the Naval Nuclear Propulsion
Program in 1982. The Department of Energy and Department of the Navy will continue to
maintain dual authority over this program. The director of the program will serve eight years,
which can be extended once the term has been completed if desired by the respective
departments. Within the Department of Energy, the responsibilities will include research,
development, oversight, and training for the necessary personnel in order to ensure security and
the necessary level of safety. The Department of Navy will oversee similar research,
development and training relevant to the department. Presidential Executive Order 12344 gives
authority to the Naval Nuclear Propulsion Program and states the authority of the Navy to
_____________
1 James Conca, "America's Navy The Unsung Heroes Of Nuclear Energy," (Forbes. Forbes Magazine, 28 Oct. 2014.
Web. 18 Feb. 2016).
2 "Nuclear-Powered Ships," (World NuclearAssociation.World Nuclear Association,Jan. 2016. Web. 19 Feb.
2016).
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promote research, development, testing and operation of naval nuclear reactors. Under the
executive order, the Department of Navy is responsible for selecting and training both military
and civilian members in order to ensure the maintenance of the nuclear fleet. The Naval Nuclear
Propulsion Program partners with its main contractor, Bechtel Plant Machinery, Inc., to design,
organize, and implement the technology for nuclear reactors.3 Ultimately, there must be adequate
information sharing and transparency to ensure the safety and security of all personnel working
through the Naval Nuclear Propulsion Program.4
The aging naval nuclear reactor facilities have introduced a discussion regarding the need
to modernize or withdraw funding. Prior to the FY-2017 budget proposal, the retirement of the
nuclear fleet remained a strong possibility. However, with the rising concern of non-state actors
and international threats, the United States has reassessed the need of nuclear-powered aircrafts
and submarines. After the Department of Energy approved the Department of Navy’s goal to
modernize the naval fleet, the Navy has planned to acquire 12 Ohio-class submarines to replace
the 14 Trident Ohio-class ballistic missile submarines in rotation. The cost to replace the current
naval fleet will total $139 billion, while the lifetime cost will be $347 billion. Although the
proposed budget for the modernization of the naval fleet exceeds the allocated amount for the
naval fleet in previous budgets, there has been a significant amount of support for an increase the
budget to promote United States maritime superiority internationally. The Ohio replacement
program, SSBN(X), has a separate fund allocated in the budget, named the “National Sea-Based
Deterrence Fund.” The Naval Nuclear Propulsion Program plans to use the funds allocated in the
______________
3 "Powering the Nuclear Navy," (NNSA: National Nuclear Security Administration. U.S. Department of Energy,
n.d. Web. 18 Feb. 2016).
4 "Executive Order 12344--Naval Nuclear Propulsion Program," (The U.S. National Archives and Records
Administration.The U.S. National Archives and Records Administration, 1 Feb. 1982. Web. 19 Feb. 2016).
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2017 budget to purchase the first submarine by 2020.5 While the market is hesitant to invest in
nuclear energy or support the increase in the defense budget, the importance of reducing carbon
emissions has been cited as a major determinant for increasing the budget. Nuclear reactors are
responsible for 20% of the country’s energy and over 62% of the carbon-free power used by the
United States.6 Overall, it is necessary for the United States to modernize the naval fleet in order
to encourage the use of nuclear energy and promote a stronger presence internationally.
However, the final Nuclear Security Summit in Washington, D.C. showed an urgency to
remove highly enriched uranium in civilian reactors. A significant amount of international
attention has been directed to the United States naval reactor program and its reliance on highly
enriched uranium. As the largest user of highly enriched uranium in its navy, the United States
has increased efforts to research how to switch its naval reactors away from utilizing highly
enriched uranium to low enriched uranium. The United States can encourage the international
community to move away from employing highly enriched uranium in their fleets, such as the
Russian Federation and United Kingdom who utilize bomb-grade uranium fuel.7 The United
States pursued research in 1994 and 2014 in order to determine the potential for switching naval
reactors to utilize low enriched uranium. Research determined the inability to convert current
models to run on low-enriched uranium due to the impact on reactor lifetime, size and ship costs.
Ultimately, replacing highly enriched uranium in the naval fleet would be less efficient and more
______________
5 Martin Matishak, "The Navy Hunts for Its Next-Generation Nuclear Submarine," (The Fiscal Times. The Fiscal
Times, 5 Jan. 2016. Web. 18 Feb. 2016).
6 Andrew Coffman Smith, "Nuclear Proponents Emphasize Value of US Fleet in Meeting Carbon-cutting Goals,"
(SNL. SNL Financial LC, 18 Feb. 2016. Web. 22 Feb. 2016).
7 Alan J. Kuperman, "Obama: The Anti-Anti-Nuke President," (The New York Times. The New York Times, 25
Mar. 2016. Web. 21 Apr. 2016).
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costly.8 However, the increase in nonproliferation rhetoric throughout the Obama administration
has shown the need to pursue alternative avenues for the naval fleet. After the 2014
investigations looking into the low enriched uranium, Congress suggested the Department of
Navy and Department of Energy develop a program design a naval fleet capable of operating on
low enriched uranium; thus, leading to a new initiative to manufacture an advanced fuel system
that would rely on low enriched uranium.9 However, the FY17 budget eliminated funding for the
research project claiming that the research was too insufficient and lacking adequate results.10
The recent plans to modernize the nuclear navy reaffirms the effectiveness and reliability of
using nuclear energy as a clean power source.
U.S. Department of Energy Programs
The Task Force for the Future of Nuclear Energy and the Gateway for Accelerated Innovation in
Nuclear have been created through the U.S. Department of Energy to help promote and facilitate
research and development in the nuclear energy industry. By ensuring a transparent process, the
Department of Energy hopes to encourage the private sector to pursue nuclear energy programs.
The Department of Energy has instituted two important projects to help facilitate new
research and technology development in the nuclear energy industry, the Task Force on the
Future of Nuclear Energy and the Gateway for Accelerated Innovation in Nuclear. The Task
Force on the Future of Nuclear Energy focuses on facilitating the transition from current light
water reactors to new technology in 2030 when the current wave of reactors reach 60 years old.
The purpose of aiding in the transition and promoting new technology is to ensure a new
______________
8 "FACT SHEET: Feasibility of Low Enriched Uranium Fuel in Naval Reactor Plants," (The White House. The
White House, 31 Mar. 2016. Web.19 Apr. 2016).
9 “FACT SHEET: Feasibility of Low Enriched Uranium Fuel in Naval Reactor Plans.”
10 Kuperman, “Obama: The Anti-Anti-Nuke President.”
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generation of reactors is completed and online between 2030 and 2050.11 The Gateway for
Accelerated Innovation in Nuclear compliments the Department of Energy Task Force by
focusing on technical assistance to ensure the future of nuclear energy.
The Gateway for Accelerated Innovation in Nuclear program was the result of the
Summit on Nuclear Energy in March 2015 to help bridge the gap between the federal regulatory
standards and private companies in order to move closer towards successful and secure energy
programs. The Department of Energy currently has a $12.5 billion loan, which they will now
open to private nuclear energy programs. In order to avoid the high out-of-pocket expenses
needed to fulfill the Nuclear Regulatory Commission licensing, companies will be able to tap
into the Department of Energy loans to cover those costs and move forward more quickly with
their programs. In addition, those eligible for these resources will also have access to vouchers
amounting to $2 million each to be able to access and utilize the national laboratories to aid in
their research and development.12 Although in comparison to the rest of the world, this is a
fraction of what the companies need to pursue and fulfill nuclear energy reactors and programs,
this is a positive step forward. The GAIN program will act as an intermediary between the
federal government, the Nuclear Regulatory Commission, and the private sector to provide
financial and technical support to help accelerate the commercialization process. The program
will provide small business vouchers totaling $2 million through the Department of Energy to
provide financial support for companies showing significant interest and progress in their
_____________
11
Karen Gibson, "Secretary of Energy Advisory Board (SEAB) Task Force on the Future of Nuclear Power,"
(Energy.gov. U.S. Department of Energy, n.d. Web.25 Apr. 2016).
12 Richard Martin, "White House Strikes a Blow for Advanced Nuclear Reactors," (MIT Technology Review. MIT
Technology Review, 19 Nov. 2015. Web. 04 Feb. 2016).
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respective projects. Ultimately, the Gateway for Accelerated Innovation in Nuclear helps
promote expedient results in research and development, while supporting a harmonious
relationship between the private and public sectors in pursuing nuclear energy.
Congressional Legislation
The United States Congress has introduced a variety of bills to the floor addressing nuclear
energy; however, both the House and the Senate are currently debating bills that will
significantly impact the nuclear industry. The success or lack of success of these bills will have a
direct impact on the progress of nuclear reactors domestically.
The United States Congress has introduced a variety of energy bills addresses the
importance of nuclear energy and supporting nuclear energy startups. After the 2015 United
Nations Climate Change Conference in Paris, France, President Barack Obama gained further
momentum in his goal to reduce carbon emissions. Domestically, the Obama administration has
supported a variety of bills to promote reducing carbon emissions and encouraging reusable
energy. Under the Environmental Protection Agency, the Clean Power Plan establishes state
regulations in order to decrease and monitor greenhouse emissions on a local and national level.
The plan requires states to submit a plan by 2018 detailing their local initiative to help reduce
CO2 emissions by 872 tons by 2030. Prior to the 2030 deadline, the states must show some
progression and advancement in meeting their state and national goals by 2020.13 (M.S.L.J.) The
Obama administration’s primary concern has been the implementation and enforcement of
greenhouse emissions regulations. However, if the United States overturned the Clean Power
Plan, the Environmental Protection Agency will still be able to enforce greenhouse emissions
regulations. To complement the Clean Power Plan, the United States Congress has been
______________
13 M.S.L.J., "The Supreme Court Puts the Clean Power Plan on Hold," (The Economist. The Economist Newspaper,
10 Feb. 2016. Web. 12 Feb. 2016).
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circulating a variety of bills that work to reform and encourage nuclear energy innovation as an
alternative energy source.
In February 2016, the Senate had a near unanimous vote for the S.2461 Nuclear Energy
Innovation Capabilities Act, which will combine with S.2012 Energy Policy Modernization Bill
to create a comprehensive bill outlining energy policy for fossil fuel and clean energy.
Combining S.2461 and S.2012 will show the need for the United States to modernize its energy
programs in order to respond to the growing concern surrounding climate change and the need to
diversify energy sources. The S.2461 bill highlights the need to combine the public and private
sectors to support the growing need for renewable energy. In addition, the bill establishes the
National Nuclear Innovation Center to engage in research funded by the private sector, create a
database of nuclear science information accessible to Federal agencies and the private sector, and
test energy conversion systems.14 A similar bill going through the House, H.R. 4084 Nuclear
Energy Innovation Capabilities Act, asks for similar objectives. However, rather than
establishing a National Nuclear Innovation Center, the H.R. 4084 suggests calling the center the
National Reactor Innovation Center and limits the involvement of the Nuclear Regulatory
Commission. Otherwise S.2461 and H.R. 4084 support the National Strategic Computing
Initiative created under Executive Order 13702 to establish a program under the Secretary of
Energy to focus on high performance computation modeling and simulation techniques. This
program will promote accelerated research and development, simulate and predict nuclear
phenomena, and utilize the Advanced Scientific Computing Research program and the Energy
Innovation Hub for Modeling and Simulation for reference.15 In addition, the Secretary of
____________
14 S. 2461, 114th Cong. (2016). Print.
15 S. 2461, 114th Cong. (2016). Print.
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Energy will determine by December 31, 2016 the need for a versatile reactor-based fast neutron
source as a national user facility. Exactly 12 months after this bill is passed, the Department of
Energy will submit 3 separate 10-year budget proposals based on the fiscal 2016 budget. The
first will maintain constant funding, the second will require a 2 percent increase annually, and
the third will be unconstrained.16 Ultimately, H.R.4084 and S.2461 will promote innovation and
improvement of the Nuclear Regulatory Commission. With the sudden surge in rhetoric
surrounding climate change, the United States seems to be investing more time into promoting
nuclear energy research. However, the lack of transparency between the private and public
sectors seems to be significantly impeding progress. As a result, the United States government is
attempting to change the relationship between the private and public sectors by promoting
access, information sharing, and research cooperation. However, startup companies are finding a
large hurdle with the large economic investment that impedes progress. These new companies
are forced to find outside funding for research and development. There is a significant amount of
investment for startups, government research, and nuclear energy implementation. Although
utilizing nuclear energy proves to save money and resources in the long term, encouraging
investment is a major hurdle. The United States Congress is hoping to reform the process in
order to demonstrate the need to pursue nuclear energy.
Reforming the Nuclear Regulatory Commission
With the increase in nuclear research and venture capitalists pursuing companies in the nuclear
energy industry, politicians are calling for an improvement of the licensing program within the
Nuclear Regulatory Commission.
The Nuclear Regulatory Commission regulates the maintenance, production and research
____________
16 S. 2461, 114th Cong. (2016). Print.
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within the nuclear energy industry in the United States. The input of the Nuclear Regulatory
Commission on the regulation of facilities, reactors, and other activities related to the nuclear
energy industry has a significant impact on the success of the programs.17 However the 2011
security enhancements to the Nuclear Regulatory Committee have significantly impacted the
strength and security of the nuclear energy industry as $1.2 billion has been invested into
maintaining and increasing security. Regardless of the security measures, the Nuclear Regulatory
Commission has been experiencing an increased concern in reforming their program with the
increase in advanced nuclear reactor research.
Recently, United States Senators Jim Inhofe (R-Okla.), Cory Booker (D-N.J.), Sheldon
Whitehouse (D-R.I.), and Mike Crapo (R-Idaho) produced S.795, Nuclear Energy Innovation
and Modernization Act, to address the recent concern of reforming the Nuclear Regulatory
Commission licensing process and requirements. The bill aims to modernize the regulation of
nuclear energy in order to address the need for an accelerated licensing by 2018 within the
Nuclear Regulatory Commission, the need to reform the fee recovery framework by 2019, and a
new “technology-inclusive framework” for advanced reactor designs by 2023.18 The desire for a
faster licensing process has been a consistent and ongoing conversation; therefore, this bill will
address both short term and long term goals to redesign the process. The bill also recognizes the
need to create a “one-size-fits-all framework” within the Nuclear Regulatory Commission to help
the innovation and licensing of advanced reactors. Most importantly this will bill will help
increase the transparency of the Nuclear Regulatory Commission’s process; therefore, leading to
____________
17 "Post-Sept.11 Security Enhancements,” (Nuclear Energy Institute.Nuclear Energy Institute, n.d. Web. 04 Feb.
2016).
18 "Inhofe, Booker, Whitehouse,Crapo Introduce the Nuclear Energy Innovation and Modernization Act | U.S.
Senator for Oklahoma," (Press Release: Inhofe, Booker,Whitehouse, Crapo Introduce the Nuclear Energy
Innovation and Modernization Act.James M. Inhofe, U.S. Senator of Oklahoma, 13 Apr. 2016. Web. 22 Apr. 2016).
Stevenson 11
a more productive relationship between the private and public sectors. The Senate Environment
and Public Works Committee will hold a hearing on April 21 for S. 2795.
Nuclear Energy Startups and the Increase in Venture Capitalists
The sudden increase in startups and venture capitalists pursuing nuclear energy problems has
paralleled the government’s focus on clean power and nuclear energy. The United States
Congress has taken steps to increase transparency, information sharing, and research and
development.
With the growing desire to respond to and combat climate change, new businesses have
developed to respond to the increasing concern. Venture capitalists are pursuing nuclear energy
programs and fighting for the support and funding from the United States government to create
substantial progress in their projects. While striving for governmental support, businesses are
combating the criticism surrounding the initial startup costs, the threat of nuclear disasters, and
the transition from coal-fueled energy to nuclear energy. The startups are pursuing a variety of
avenues to respond to the growing rhetoric and find the most appropriate, climate-friendly
nuclear energy program. A major issue venture capitalists and startups are trying to address is the
reliability or productivity of fission versus fusion reactors. Fission reactors have a significant
amount of waste, while fusion reactors release no carbon dioxide and produce little radioactive
waste during the reaction process. Some startups focusing on fusion reactors include General
Fusion out of British Columbia, Helion Energy from Seattle, and Tri-Alpha Energy located in
Foothill Ranch. The government is also pursuing a fusion nuclear reactor called the International
Thermonuclear Experimental Reactor (ITER), which is a multilateral project being built in
France. ITER has proven to be the most successful fusion reactor currently being pursued, but
the amount of resources the United States has provided to the initiative has significantly drawn
Stevenson 12
from the potential funds given to private companies domestically.19 The United States should
focus on supporting domestic research and development of the nuclear energy industry.
The growing trend in venture capitalists pursuing nuclear energy reactors is promising;
however, will it grow fast enough to match the growing concern surrounding climate change and
depleting natural resources? Statistics are showing roughly 55 new nuclear startups totaling $1.6
billion in funding have established promising business plans in pursuing nuclear energy reactor
designs. Some notable and successful companies include TerraPower, General Fusion, NuScale
Power, and Transatomic Power.20 These startups have very distinct business plans and different
versions of nuclear reactors they believe will best maintain stability and continued success as the
United States moves further into clean energy. Below you will find a comprehensive outline of
each program, their supporters, and key elements of each proposed reactor.
1. Helion Energy: Helion Energy is creating a linear colliding-beam reactor,
which crushes the fuel with magnetic fields until fusion occurs. Using this
model, Helion Energy hopes to complete its first full model by 2020.21 To
help with production, the company has received $4 million in funding from
the Department of Energy towards the development of its reactor.22
______________
19 Dino Grandoni, "Start-Ups Take On Challenge of Nuclear Fusion," (The New York Times. The New York Times,
25 Oct. 2015. Web. 10 Feb. 2016).
20 Katie Fehrenbacher, "How Startups Can Save Nuclear Tech," (Fortune. Time Inc., 06 July 2015. Web.03 Feb.
2016).
21 Waldrop M. Mitchell, "Plasma Physics: The Fusion Upstarts,” (Nature.com. Nature Publishing Group, 23 July
2014. Web. 17 Feb. 2016).
22 Alan Boyle, "Rays of Hope: Fringe Fusion Ventures Take Small Steps Toward Energy Leap," (NBC News.
NBCNews.com, 5 June 2015. Web. 17 Feb. 2016).
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2. Tri Alpha Energy: Little information is known about Tri Alpha Energy due to
its secretive nature. However, the public does know that Tri Alpha Energy is
using a linear fusion reactor model, which will use a steam-turbine system
with its first generation reactor. The company has garnered the financial
support of Microsoft co-founder, Paul Allen, and the Russian government’s
venture-capital firm, Rusnano, totaling $150 million between both funders.23
3. TerraPower: TerraPower is pursuing a traveling water reactor with the support
of Bill Gates, co-founder of Microsoft. While he has brought in a significant
amount of revenue, Gates has helped the company establish a working
relationship with China in order to aid in the development of the TerraPower
reactor. However, the company has experienced a significant amount of
difficulty producing a traveling water reactor prototype. As a result, the
company is considering a molten chloride design rather than their initial
traveling water reactor.24
4. General Fusion: General Fusion’s design utilizes magnetized target fusion,
which uses pistons as a source of energy. The company is using an idea that
the government discovered and aborted, which compresses a ball of hydrogen
in order to produce energy. General Fusion has attracted the support of Jeffrey
P. Bezos, founder of Amazon.com. In total the company has accumulated $74
million from private investors and $20 million from the Canadian
_____________
23 Mitchell, "Plasma Physics: The Fusion Upstarts.”
24 Richard Martin, "TerraPower Quietly Explores New Nuclear Reactor Strategy," (MIT Technology Review. MIT
Technology Review, 21 Oct. 2015. Web. 17 Feb. 2016).
Stevenson 14
government.25 Internationally, the country of Malaysia has invested $22
million in the project.26
5. NuScale Power: NuScale Power is a pressurized water reactor and small
modular reactor (SMR), which has focused on safety precautions in order to
prevent meltdowns. To avoid a nuclear disaster, NuScale has designed the
reactor to not rely on AC or DC power and will not use an external water
source. This reactor is established below ground with steel walls, water
perimeter, and a biological shield cover.27 The main shareholder and supporter
of NuScale has been the Fluor Corporation, who hopes to utilize this power
source in areas inaccessible to power grids.28 However, NuScale Power ia also
receiving funding from the Department of Energy over 5 years to help
accelerate the development and completion of the generator. Over 5 years, the
money granted to NuScale power will cost $217 million. With this funding,
NuScale plans to apply for certification from the Nuclear Regulatory
Commission by the end of 2016 and begin production by 2036.29
6. Transatomic Power: Transatomic Power is using molten salt technology
developed in the 1960s in the Tennessee Oak Ridge National Laboratory.
____________
25 Dino Grandoni, "Start-Ups Take On Challenge of Nuclear Fusion," (The New York Times. The New York Times,
25 Oct. 2015. Web. 10 Feb. 2016).
26 Brian Dumaine, "Why Jeff Bezos, Peter Thiel, and Others Are Betting on Fusion,” (Fortune. Times, Inc., 28 Sept.
2015. Web. 17 Feb. 2016).
27 "NuScale Power Announces Launch of NuScale Diverse Energy Platform (NuDEP)," (Business Wire. Business
Wire, 22 Apr. 2015. Web. 17 Feb. 2016).
28 Braden Reddall, "Startup NuScale Holds Its Own in Game of Nuclear Giants," (Reuters. Thomson Reuters, 31
Aug. 2012. Web. 17 Feb. 2016).
29 Roger Mayers,"Small Reactors a Strategy for Climate Change," (Idaho Statesman. Idahostatesman.com, 23 Feb.
2016. Web. 25 Feb. 2016).
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Molten salt reactors utilize nuclear waste rather than relying on rods of
nuclear material. Most reactors use rods of nuclear material, which results in
high levels of nuclear waste. A nuclear reactor running on molten salt would
be less likely to result in a nuclear meltdown, less economically burdensome,
and diminish nuclear waste. However, this reactor does function on
significantly higher temperatures than must reactors due to the melting
temperature of molten salt. Another important detail is that the reactor would
be smaller than most due to the use of zirconium hydride. The goal is to
establish a functioning reactor by 2020 with funding provided by Founders
Fund.30
Although there are strong competitors pursuing nuclear energy, there has been much
discussion surrounding the ever-evolving relationship with the government. Startups are
struggling to meet qualifications and garner funding from the government, resulting in their
progress slowing significantly. The government is requiring each startup to reach a specific point
of success before guaranteeing funding or loan installments in support of their programs. The
installments are dependent upon the success and continuous progress of the startup. However,
any significant progression has been impeded due to the Nuclear Regulatory Commission
regulations. Without a transparent and realistic set of guidelines and regulations, the private
sector will suffer tremendously in their pursuit for nuclear energy programs. In order to expedite
the process the Nuclear Regulatory Commission must engage in some sort of new amendment or
____________
30 Kevin Bullis, "Experiments Start on a Meltdown-Proof Nuclear Reactor," (MIT Technology Review. MIT
Technology Review, 10 Feb. 2015. Web. 17 Feb. 2016).
Stevenson 16
plan to promote a strong, productive relationship with startups and other private companies.31
The government must recognize that the will not be able to excel and pursue a successful nuclear
program without the help of the private sector pursuing alternative nuclear reactors.
As more startup companies are pursuing alternate forms of nuclear energy, companies are
pursuing other avenues and countries in order to progress in research and development.
Companies, such as Bill Gates’ Terrapower, has accepted a deal with the China National Nuclear
Corporation to build a prototype in China with the support and funding from the organization.
Most interesting is the Department of Energy’s decision to pursue a relationship with the
Shanghai Institute of Applied Physics to pursue a design and prototype of a molten salt reactor.34
(Martin - Advanced Nuclear) Although creating an avenue for information sharing is
domestically and internationally will reflect positively both on the United States and the
development of domestic startups, the United States should increase efforts to support local
businesses. Companies should not feel the need to resort to international corporations to support
the development, which were pursued in order to help the United States. The government must
work to fix the misconnect between the bureaucracy and the private corporations and help
expedite production domestically.
Conclusion
The advancement of nuclear energy in the United States is directly related to
governmental support of the private sector. The Department of Energy established the Task
Force on the Future of Nuclear Energy and the Gateway for Accelerated Innovation in Nuclear to
_____________
31 Fehrenbacher, "How Startups Can Save Nuclear Tech."
32 Richard Martin, "Advanced Nuclear Industry to Regulators: Give Us a Chance," (MIT Technology Review. MIT
Technology Review, 13 Oct. 2015. Web. 12 Feb. 2016).
Stevenson 17
support the financial burden of research and development for startup businesses and the private
sector. However, new research projects are experiencing severe setbacks from the extensive
licensing program of the Nuclear Regulatory Commission. Congress has introduced a variety of
bills to reform the licensing program, such as S.2795, “Nuclear Energy Innovation and
Modernization Act.” An amendment, such as S.2795, suggests reforming the Nuclear Regulatory
Commission to maintain the same security protocols and requirements, but expedite the licensing
program in order to allow for and encourage innovation and research. Startups have begun to
expand and rapidly progress in the nuclear energy industry; however, the recent delay from the
Nuclear Regulatory Commission to grant licenses and the Department of Energy to contribute
funding to all startups have left businesses seeking alternative means to provide resources.
Startups, such as TerraPower, have pursued relationships with China to help expedite research
and development. In order for nuclear power to excel in the United States, the government
should maintain momentum and pursue reformations of the Nuclear Regulatory Commission. By
promoting a harmonious relationship between the private and public sectors, startups and venture
capitalists will be better suited for gaining progress. The Department of Energy must maintain
and support its initiatives to provide funding and Congress must reform the licensing program of
the Nuclear Regulatory Commission. Together, the government will be able to support the future
of nuclear power in the United States.
Stevenson 18
Works Cited
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Review. MIT Technology Review, 10 Feb. 2015. Web. 17 Feb. 2016.
Conca, James. "America's Navy The Unsung Heroes Of Nuclear Energy." Forbes. Forbes
Magazine, 28 Oct. 2014. Web. 18 Feb. 2016.
Conca, James. "U.S. Senate Wants To Decrease CO2 By Increasing Nuclear Energy." Forbes.
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Records Administration. The U.S. National Archives and Records Administration, 1 Feb.
1982. Web. 19 Feb. 2016.
"FACT SHEET: Feasibility of Low Enriched Uranium Fuel in Naval Reactor Plants." The White
House. The White House, 31 Mar. 2016. Web. 19 Apr. 2016.
Fehrenbacher, Katie. "How Startups Can Save Nuclear Tech." Fortune. Time Inc., 06 July 2015.
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Gibson, Karen. "Secretary of Energy Advisory Board (SEAB) Task Force on the Future of
Nuclear Power." Energy.gov. U.S. Department of Energy, n.d. Web. 25 Apr. 2016.
Stevenson 19
Grandoni, Dino. "Start-Ups Take On Challenge of Nuclear Fusion." The New York Times. The
New York Times, 25 Oct. 2015. Web. 10 Feb. 2016.
"Inhofe, Booker, Whitehouse, Crapo Introduce the Nuclear Energy Innovation and
Modernization Act | U.S. Senator for Oklahoma." Press Release: Inhofe, Booker,
Whitehouse, Crapo Introduce the Nuclear Energy Innovation and Modernization Act.
James M. Inhofe, U.S. Senator of Oklahoma, 13 Apr. 2016. Web. 22 Apr. 2016.
Kuperman, Alan J. "Obama: The Anti-Anti-Nuke President." The New York Times. The New
York Times, 25 Mar. 2016. Web. 21 Apr. 2016.
"Major Security Enhancements at U.S. Nuclear Energy Facilities Since 9/11."Nuclear Energy
Institute. Nuclear Energy Institute, n.d. Web. 4 Feb. 2016.
Martin, Richard. "Advanced Nuclear Industry to Regulators: Give Us a Chance." MIT
Technology Review. MIT Technology Review, 13 Oct. 2015. Web. 12 Feb. 2016.
Martin, Richard. "TerraPower Quietly Explores New Nuclear Reactor Strategy." MIT
Technology Review. MIT Technology Review, 21 Oct. 2015. Web. 17 Feb. 2016.
Martin, Richard. "White House Strikes a Blow for Advanced Nuclear Reactors." MIT
Technology Review. MIT Technology Review, 19 Nov. 2015. Web. 04 Feb. 2016.
Matishak, Martin. "The Navy Hunts for Its Next-Generation Nuclear Submarine." The Fiscal
Times. The Fiscal Times, 5 Jan. 2016. Web. 18 Feb. 2016.
Mayers, Roger. "Small Reactors a Strategy for Climate Change." Idaho Statesman.
Idahostatesman.com, 23 Feb. 2016. Web. 25 Feb. 2016.
Mitchell Waldrop, M. "Plasma Physics: The Fusion Upstarts." Nature.com. Nature Publishing
Group, 23 July 2014. Web. 17 Feb. 2016.
M.S.L.J. "The Supreme Court Puts the Clean Power Plan on Hold." The Economist. The
Stevenson 20
Economist Newspaper, 10 Feb. 2016. Web. 12 Feb. 2016.
"Nuclear-Powered Ships." World Nuclear Association. World Nuclear Association, Jan. 2016.
Web. 19 Feb. 2016.
"NuScale Power Announces Launch of NuScale Diverse Energy Platform (NuDEP)." Business
Wire. Business Wire, 22 Apr. 2015. Web. 17 Feb. 2016.
"Post-Sept. 11 Security Enhancements." -Nuclear Energy Institute. Nuclear Energy Institute, n.d.
Web. 04 Feb. 2016.
"Powering the Nuclear Navy." NNSA: National Nuclear Security Administration. U.S.
Department of Energy, n.d. Web. 18 Feb. 2016.
Reddall, Braden. "Startup NuScale Holds Its Own in Game of Nuclear Giants." Reuters.
Thomson Reuters, 31 Aug. 2012. Web. 17 Feb. 2016.
Smith, Andrew Coffman. "Nuclear Proponents Emphasize Value of US Fleet in Meeting
Carbon-cutting Goals." SNL. SNL Financial LC, 18 Feb. 2016. Web. 22 Feb. 2016.
S. 2461, 114th Cong. (2016). Print.
Whittenberg, Jake. "Clean Nuclear Energy Future One Step Closer." KING5. KING5 - TV, 2
Mar. 2016. Web. 03 Mar. 2016.

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KStevensonGNINuclearPower

  • 1. Stevenson 1 Katrina Stevenson April 29, 2016 Global Nexus Initiative: The Future of Nuclear Power in the United States The recent concern of pursuing clean energy in the United States has encouraged the private and public sector to contribute to research and development of nuclear energy reactors. The United States government has established programs through the Department of Energy to provide funding for private companies showing significant progress and to help maneuver through the licensing program of the Nuclear Regulatory Commission. However, the private sector has experienced many difficulties with the Nuclear Regulatory Commission. As a result, Congress has proposed reforming the licensing program of the Nuclear Regulatory Commission to help expedite licensing of programs. A more harmonious relationship between the private and public sectors will help promote a stronger nuclear energy industry in the United States. Ultimately, the future of nuclear power in the United States will depend on the success of Congressional legislation and the reformation of the Nuclear Regulatory Commission to support new startups and venture capitalists pursuing nuclear energy research. United States Naval Nuclear Fleet The introduction of the United States Naval Nuclear Propulsion Program has been successful in maintaining a nuclear submarine and aircraft fleet responsible for sustaining of the nuclear reactors in the United States. By supporting the naval fleet, the commercial nuclear energy industry can learn from the safety and security of the nuclear navy. The United States Department of Navy controls roughly half of the nuclear reactors in the United States and maintains the oldest and most reliable nuclear energy program. With roughly 100 reactors under the supervision of the United States Navy, the department powers roughly 90 submarines and aircraft carriers. Together, the naval fleet produces electricity, heat, freshwater and propulsion accumulating to over 5,400 reactor years and 130 million miles. In addition, the
  • 2. Stevenson 2 naval fleet is renowned for its safety record. The safety record for the Navy has set the precedent for future nuclear programs both civilian and government.1 The thousands of individuals living among submarines powered by nuclear energy have not been affected adversely regardless of their close proximity. The United States Department of Navy began researching nuclear-powered aircrafts and submarines starting in the 1940s, but did not complete its first nuclear-powered submarine until 1955. After a significant amount of research and development, the Department of Navy determined the most efficient method of powering naval aircrafts and submarines is to rely on nuclear energy.2 As a result, the government established the Navy Nuclear Propulsion Program under the National Nuclear Security Administration of the Department of Energy to provide military and technological support to a variety of governmental nuclear programs. The Presidential Executive Order 12344 reaffirmed the legitimacy of the Naval Nuclear Propulsion Program in 1982. The Department of Energy and Department of the Navy will continue to maintain dual authority over this program. The director of the program will serve eight years, which can be extended once the term has been completed if desired by the respective departments. Within the Department of Energy, the responsibilities will include research, development, oversight, and training for the necessary personnel in order to ensure security and the necessary level of safety. The Department of Navy will oversee similar research, development and training relevant to the department. Presidential Executive Order 12344 gives authority to the Naval Nuclear Propulsion Program and states the authority of the Navy to _____________ 1 James Conca, "America's Navy The Unsung Heroes Of Nuclear Energy," (Forbes. Forbes Magazine, 28 Oct. 2014. Web. 18 Feb. 2016). 2 "Nuclear-Powered Ships," (World NuclearAssociation.World Nuclear Association,Jan. 2016. Web. 19 Feb. 2016).
  • 3. Stevenson 3 promote research, development, testing and operation of naval nuclear reactors. Under the executive order, the Department of Navy is responsible for selecting and training both military and civilian members in order to ensure the maintenance of the nuclear fleet. The Naval Nuclear Propulsion Program partners with its main contractor, Bechtel Plant Machinery, Inc., to design, organize, and implement the technology for nuclear reactors.3 Ultimately, there must be adequate information sharing and transparency to ensure the safety and security of all personnel working through the Naval Nuclear Propulsion Program.4 The aging naval nuclear reactor facilities have introduced a discussion regarding the need to modernize or withdraw funding. Prior to the FY-2017 budget proposal, the retirement of the nuclear fleet remained a strong possibility. However, with the rising concern of non-state actors and international threats, the United States has reassessed the need of nuclear-powered aircrafts and submarines. After the Department of Energy approved the Department of Navy’s goal to modernize the naval fleet, the Navy has planned to acquire 12 Ohio-class submarines to replace the 14 Trident Ohio-class ballistic missile submarines in rotation. The cost to replace the current naval fleet will total $139 billion, while the lifetime cost will be $347 billion. Although the proposed budget for the modernization of the naval fleet exceeds the allocated amount for the naval fleet in previous budgets, there has been a significant amount of support for an increase the budget to promote United States maritime superiority internationally. The Ohio replacement program, SSBN(X), has a separate fund allocated in the budget, named the “National Sea-Based Deterrence Fund.” The Naval Nuclear Propulsion Program plans to use the funds allocated in the ______________ 3 "Powering the Nuclear Navy," (NNSA: National Nuclear Security Administration. U.S. Department of Energy, n.d. Web. 18 Feb. 2016). 4 "Executive Order 12344--Naval Nuclear Propulsion Program," (The U.S. National Archives and Records Administration.The U.S. National Archives and Records Administration, 1 Feb. 1982. Web. 19 Feb. 2016).
  • 4. Stevenson 4 2017 budget to purchase the first submarine by 2020.5 While the market is hesitant to invest in nuclear energy or support the increase in the defense budget, the importance of reducing carbon emissions has been cited as a major determinant for increasing the budget. Nuclear reactors are responsible for 20% of the country’s energy and over 62% of the carbon-free power used by the United States.6 Overall, it is necessary for the United States to modernize the naval fleet in order to encourage the use of nuclear energy and promote a stronger presence internationally. However, the final Nuclear Security Summit in Washington, D.C. showed an urgency to remove highly enriched uranium in civilian reactors. A significant amount of international attention has been directed to the United States naval reactor program and its reliance on highly enriched uranium. As the largest user of highly enriched uranium in its navy, the United States has increased efforts to research how to switch its naval reactors away from utilizing highly enriched uranium to low enriched uranium. The United States can encourage the international community to move away from employing highly enriched uranium in their fleets, such as the Russian Federation and United Kingdom who utilize bomb-grade uranium fuel.7 The United States pursued research in 1994 and 2014 in order to determine the potential for switching naval reactors to utilize low enriched uranium. Research determined the inability to convert current models to run on low-enriched uranium due to the impact on reactor lifetime, size and ship costs. Ultimately, replacing highly enriched uranium in the naval fleet would be less efficient and more ______________ 5 Martin Matishak, "The Navy Hunts for Its Next-Generation Nuclear Submarine," (The Fiscal Times. The Fiscal Times, 5 Jan. 2016. Web. 18 Feb. 2016). 6 Andrew Coffman Smith, "Nuclear Proponents Emphasize Value of US Fleet in Meeting Carbon-cutting Goals," (SNL. SNL Financial LC, 18 Feb. 2016. Web. 22 Feb. 2016). 7 Alan J. Kuperman, "Obama: The Anti-Anti-Nuke President," (The New York Times. The New York Times, 25 Mar. 2016. Web. 21 Apr. 2016).
  • 5. Stevenson 5 costly.8 However, the increase in nonproliferation rhetoric throughout the Obama administration has shown the need to pursue alternative avenues for the naval fleet. After the 2014 investigations looking into the low enriched uranium, Congress suggested the Department of Navy and Department of Energy develop a program design a naval fleet capable of operating on low enriched uranium; thus, leading to a new initiative to manufacture an advanced fuel system that would rely on low enriched uranium.9 However, the FY17 budget eliminated funding for the research project claiming that the research was too insufficient and lacking adequate results.10 The recent plans to modernize the nuclear navy reaffirms the effectiveness and reliability of using nuclear energy as a clean power source. U.S. Department of Energy Programs The Task Force for the Future of Nuclear Energy and the Gateway for Accelerated Innovation in Nuclear have been created through the U.S. Department of Energy to help promote and facilitate research and development in the nuclear energy industry. By ensuring a transparent process, the Department of Energy hopes to encourage the private sector to pursue nuclear energy programs. The Department of Energy has instituted two important projects to help facilitate new research and technology development in the nuclear energy industry, the Task Force on the Future of Nuclear Energy and the Gateway for Accelerated Innovation in Nuclear. The Task Force on the Future of Nuclear Energy focuses on facilitating the transition from current light water reactors to new technology in 2030 when the current wave of reactors reach 60 years old. The purpose of aiding in the transition and promoting new technology is to ensure a new ______________ 8 "FACT SHEET: Feasibility of Low Enriched Uranium Fuel in Naval Reactor Plants," (The White House. The White House, 31 Mar. 2016. Web.19 Apr. 2016). 9 “FACT SHEET: Feasibility of Low Enriched Uranium Fuel in Naval Reactor Plans.” 10 Kuperman, “Obama: The Anti-Anti-Nuke President.”
  • 6. Stevenson 6 generation of reactors is completed and online between 2030 and 2050.11 The Gateway for Accelerated Innovation in Nuclear compliments the Department of Energy Task Force by focusing on technical assistance to ensure the future of nuclear energy. The Gateway for Accelerated Innovation in Nuclear program was the result of the Summit on Nuclear Energy in March 2015 to help bridge the gap between the federal regulatory standards and private companies in order to move closer towards successful and secure energy programs. The Department of Energy currently has a $12.5 billion loan, which they will now open to private nuclear energy programs. In order to avoid the high out-of-pocket expenses needed to fulfill the Nuclear Regulatory Commission licensing, companies will be able to tap into the Department of Energy loans to cover those costs and move forward more quickly with their programs. In addition, those eligible for these resources will also have access to vouchers amounting to $2 million each to be able to access and utilize the national laboratories to aid in their research and development.12 Although in comparison to the rest of the world, this is a fraction of what the companies need to pursue and fulfill nuclear energy reactors and programs, this is a positive step forward. The GAIN program will act as an intermediary between the federal government, the Nuclear Regulatory Commission, and the private sector to provide financial and technical support to help accelerate the commercialization process. The program will provide small business vouchers totaling $2 million through the Department of Energy to provide financial support for companies showing significant interest and progress in their _____________ 11 Karen Gibson, "Secretary of Energy Advisory Board (SEAB) Task Force on the Future of Nuclear Power," (Energy.gov. U.S. Department of Energy, n.d. Web.25 Apr. 2016). 12 Richard Martin, "White House Strikes a Blow for Advanced Nuclear Reactors," (MIT Technology Review. MIT Technology Review, 19 Nov. 2015. Web. 04 Feb. 2016).
  • 7. Stevenson 7 respective projects. Ultimately, the Gateway for Accelerated Innovation in Nuclear helps promote expedient results in research and development, while supporting a harmonious relationship between the private and public sectors in pursuing nuclear energy. Congressional Legislation The United States Congress has introduced a variety of bills to the floor addressing nuclear energy; however, both the House and the Senate are currently debating bills that will significantly impact the nuclear industry. The success or lack of success of these bills will have a direct impact on the progress of nuclear reactors domestically. The United States Congress has introduced a variety of energy bills addresses the importance of nuclear energy and supporting nuclear energy startups. After the 2015 United Nations Climate Change Conference in Paris, France, President Barack Obama gained further momentum in his goal to reduce carbon emissions. Domestically, the Obama administration has supported a variety of bills to promote reducing carbon emissions and encouraging reusable energy. Under the Environmental Protection Agency, the Clean Power Plan establishes state regulations in order to decrease and monitor greenhouse emissions on a local and national level. The plan requires states to submit a plan by 2018 detailing their local initiative to help reduce CO2 emissions by 872 tons by 2030. Prior to the 2030 deadline, the states must show some progression and advancement in meeting their state and national goals by 2020.13 (M.S.L.J.) The Obama administration’s primary concern has been the implementation and enforcement of greenhouse emissions regulations. However, if the United States overturned the Clean Power Plan, the Environmental Protection Agency will still be able to enforce greenhouse emissions regulations. To complement the Clean Power Plan, the United States Congress has been ______________ 13 M.S.L.J., "The Supreme Court Puts the Clean Power Plan on Hold," (The Economist. The Economist Newspaper, 10 Feb. 2016. Web. 12 Feb. 2016).
  • 8. Stevenson 8 circulating a variety of bills that work to reform and encourage nuclear energy innovation as an alternative energy source. In February 2016, the Senate had a near unanimous vote for the S.2461 Nuclear Energy Innovation Capabilities Act, which will combine with S.2012 Energy Policy Modernization Bill to create a comprehensive bill outlining energy policy for fossil fuel and clean energy. Combining S.2461 and S.2012 will show the need for the United States to modernize its energy programs in order to respond to the growing concern surrounding climate change and the need to diversify energy sources. The S.2461 bill highlights the need to combine the public and private sectors to support the growing need for renewable energy. In addition, the bill establishes the National Nuclear Innovation Center to engage in research funded by the private sector, create a database of nuclear science information accessible to Federal agencies and the private sector, and test energy conversion systems.14 A similar bill going through the House, H.R. 4084 Nuclear Energy Innovation Capabilities Act, asks for similar objectives. However, rather than establishing a National Nuclear Innovation Center, the H.R. 4084 suggests calling the center the National Reactor Innovation Center and limits the involvement of the Nuclear Regulatory Commission. Otherwise S.2461 and H.R. 4084 support the National Strategic Computing Initiative created under Executive Order 13702 to establish a program under the Secretary of Energy to focus on high performance computation modeling and simulation techniques. This program will promote accelerated research and development, simulate and predict nuclear phenomena, and utilize the Advanced Scientific Computing Research program and the Energy Innovation Hub for Modeling and Simulation for reference.15 In addition, the Secretary of ____________ 14 S. 2461, 114th Cong. (2016). Print. 15 S. 2461, 114th Cong. (2016). Print.
  • 9. Stevenson 9 Energy will determine by December 31, 2016 the need for a versatile reactor-based fast neutron source as a national user facility. Exactly 12 months after this bill is passed, the Department of Energy will submit 3 separate 10-year budget proposals based on the fiscal 2016 budget. The first will maintain constant funding, the second will require a 2 percent increase annually, and the third will be unconstrained.16 Ultimately, H.R.4084 and S.2461 will promote innovation and improvement of the Nuclear Regulatory Commission. With the sudden surge in rhetoric surrounding climate change, the United States seems to be investing more time into promoting nuclear energy research. However, the lack of transparency between the private and public sectors seems to be significantly impeding progress. As a result, the United States government is attempting to change the relationship between the private and public sectors by promoting access, information sharing, and research cooperation. However, startup companies are finding a large hurdle with the large economic investment that impedes progress. These new companies are forced to find outside funding for research and development. There is a significant amount of investment for startups, government research, and nuclear energy implementation. Although utilizing nuclear energy proves to save money and resources in the long term, encouraging investment is a major hurdle. The United States Congress is hoping to reform the process in order to demonstrate the need to pursue nuclear energy. Reforming the Nuclear Regulatory Commission With the increase in nuclear research and venture capitalists pursuing companies in the nuclear energy industry, politicians are calling for an improvement of the licensing program within the Nuclear Regulatory Commission. The Nuclear Regulatory Commission regulates the maintenance, production and research ____________ 16 S. 2461, 114th Cong. (2016). Print.
  • 10. Stevenson 10 within the nuclear energy industry in the United States. The input of the Nuclear Regulatory Commission on the regulation of facilities, reactors, and other activities related to the nuclear energy industry has a significant impact on the success of the programs.17 However the 2011 security enhancements to the Nuclear Regulatory Committee have significantly impacted the strength and security of the nuclear energy industry as $1.2 billion has been invested into maintaining and increasing security. Regardless of the security measures, the Nuclear Regulatory Commission has been experiencing an increased concern in reforming their program with the increase in advanced nuclear reactor research. Recently, United States Senators Jim Inhofe (R-Okla.), Cory Booker (D-N.J.), Sheldon Whitehouse (D-R.I.), and Mike Crapo (R-Idaho) produced S.795, Nuclear Energy Innovation and Modernization Act, to address the recent concern of reforming the Nuclear Regulatory Commission licensing process and requirements. The bill aims to modernize the regulation of nuclear energy in order to address the need for an accelerated licensing by 2018 within the Nuclear Regulatory Commission, the need to reform the fee recovery framework by 2019, and a new “technology-inclusive framework” for advanced reactor designs by 2023.18 The desire for a faster licensing process has been a consistent and ongoing conversation; therefore, this bill will address both short term and long term goals to redesign the process. The bill also recognizes the need to create a “one-size-fits-all framework” within the Nuclear Regulatory Commission to help the innovation and licensing of advanced reactors. Most importantly this will bill will help increase the transparency of the Nuclear Regulatory Commission’s process; therefore, leading to ____________ 17 "Post-Sept.11 Security Enhancements,” (Nuclear Energy Institute.Nuclear Energy Institute, n.d. Web. 04 Feb. 2016). 18 "Inhofe, Booker, Whitehouse,Crapo Introduce the Nuclear Energy Innovation and Modernization Act | U.S. Senator for Oklahoma," (Press Release: Inhofe, Booker,Whitehouse, Crapo Introduce the Nuclear Energy Innovation and Modernization Act.James M. Inhofe, U.S. Senator of Oklahoma, 13 Apr. 2016. Web. 22 Apr. 2016).
  • 11. Stevenson 11 a more productive relationship between the private and public sectors. The Senate Environment and Public Works Committee will hold a hearing on April 21 for S. 2795. Nuclear Energy Startups and the Increase in Venture Capitalists The sudden increase in startups and venture capitalists pursuing nuclear energy problems has paralleled the government’s focus on clean power and nuclear energy. The United States Congress has taken steps to increase transparency, information sharing, and research and development. With the growing desire to respond to and combat climate change, new businesses have developed to respond to the increasing concern. Venture capitalists are pursuing nuclear energy programs and fighting for the support and funding from the United States government to create substantial progress in their projects. While striving for governmental support, businesses are combating the criticism surrounding the initial startup costs, the threat of nuclear disasters, and the transition from coal-fueled energy to nuclear energy. The startups are pursuing a variety of avenues to respond to the growing rhetoric and find the most appropriate, climate-friendly nuclear energy program. A major issue venture capitalists and startups are trying to address is the reliability or productivity of fission versus fusion reactors. Fission reactors have a significant amount of waste, while fusion reactors release no carbon dioxide and produce little radioactive waste during the reaction process. Some startups focusing on fusion reactors include General Fusion out of British Columbia, Helion Energy from Seattle, and Tri-Alpha Energy located in Foothill Ranch. The government is also pursuing a fusion nuclear reactor called the International Thermonuclear Experimental Reactor (ITER), which is a multilateral project being built in France. ITER has proven to be the most successful fusion reactor currently being pursued, but the amount of resources the United States has provided to the initiative has significantly drawn
  • 12. Stevenson 12 from the potential funds given to private companies domestically.19 The United States should focus on supporting domestic research and development of the nuclear energy industry. The growing trend in venture capitalists pursuing nuclear energy reactors is promising; however, will it grow fast enough to match the growing concern surrounding climate change and depleting natural resources? Statistics are showing roughly 55 new nuclear startups totaling $1.6 billion in funding have established promising business plans in pursuing nuclear energy reactor designs. Some notable and successful companies include TerraPower, General Fusion, NuScale Power, and Transatomic Power.20 These startups have very distinct business plans and different versions of nuclear reactors they believe will best maintain stability and continued success as the United States moves further into clean energy. Below you will find a comprehensive outline of each program, their supporters, and key elements of each proposed reactor. 1. Helion Energy: Helion Energy is creating a linear colliding-beam reactor, which crushes the fuel with magnetic fields until fusion occurs. Using this model, Helion Energy hopes to complete its first full model by 2020.21 To help with production, the company has received $4 million in funding from the Department of Energy towards the development of its reactor.22 ______________ 19 Dino Grandoni, "Start-Ups Take On Challenge of Nuclear Fusion," (The New York Times. The New York Times, 25 Oct. 2015. Web. 10 Feb. 2016). 20 Katie Fehrenbacher, "How Startups Can Save Nuclear Tech," (Fortune. Time Inc., 06 July 2015. Web.03 Feb. 2016). 21 Waldrop M. Mitchell, "Plasma Physics: The Fusion Upstarts,” (Nature.com. Nature Publishing Group, 23 July 2014. Web. 17 Feb. 2016). 22 Alan Boyle, "Rays of Hope: Fringe Fusion Ventures Take Small Steps Toward Energy Leap," (NBC News. NBCNews.com, 5 June 2015. Web. 17 Feb. 2016).
  • 13. Stevenson 13 2. Tri Alpha Energy: Little information is known about Tri Alpha Energy due to its secretive nature. However, the public does know that Tri Alpha Energy is using a linear fusion reactor model, which will use a steam-turbine system with its first generation reactor. The company has garnered the financial support of Microsoft co-founder, Paul Allen, and the Russian government’s venture-capital firm, Rusnano, totaling $150 million between both funders.23 3. TerraPower: TerraPower is pursuing a traveling water reactor with the support of Bill Gates, co-founder of Microsoft. While he has brought in a significant amount of revenue, Gates has helped the company establish a working relationship with China in order to aid in the development of the TerraPower reactor. However, the company has experienced a significant amount of difficulty producing a traveling water reactor prototype. As a result, the company is considering a molten chloride design rather than their initial traveling water reactor.24 4. General Fusion: General Fusion’s design utilizes magnetized target fusion, which uses pistons as a source of energy. The company is using an idea that the government discovered and aborted, which compresses a ball of hydrogen in order to produce energy. General Fusion has attracted the support of Jeffrey P. Bezos, founder of Amazon.com. In total the company has accumulated $74 million from private investors and $20 million from the Canadian _____________ 23 Mitchell, "Plasma Physics: The Fusion Upstarts.” 24 Richard Martin, "TerraPower Quietly Explores New Nuclear Reactor Strategy," (MIT Technology Review. MIT Technology Review, 21 Oct. 2015. Web. 17 Feb. 2016).
  • 14. Stevenson 14 government.25 Internationally, the country of Malaysia has invested $22 million in the project.26 5. NuScale Power: NuScale Power is a pressurized water reactor and small modular reactor (SMR), which has focused on safety precautions in order to prevent meltdowns. To avoid a nuclear disaster, NuScale has designed the reactor to not rely on AC or DC power and will not use an external water source. This reactor is established below ground with steel walls, water perimeter, and a biological shield cover.27 The main shareholder and supporter of NuScale has been the Fluor Corporation, who hopes to utilize this power source in areas inaccessible to power grids.28 However, NuScale Power ia also receiving funding from the Department of Energy over 5 years to help accelerate the development and completion of the generator. Over 5 years, the money granted to NuScale power will cost $217 million. With this funding, NuScale plans to apply for certification from the Nuclear Regulatory Commission by the end of 2016 and begin production by 2036.29 6. Transatomic Power: Transatomic Power is using molten salt technology developed in the 1960s in the Tennessee Oak Ridge National Laboratory. ____________ 25 Dino Grandoni, "Start-Ups Take On Challenge of Nuclear Fusion," (The New York Times. The New York Times, 25 Oct. 2015. Web. 10 Feb. 2016). 26 Brian Dumaine, "Why Jeff Bezos, Peter Thiel, and Others Are Betting on Fusion,” (Fortune. Times, Inc., 28 Sept. 2015. Web. 17 Feb. 2016). 27 "NuScale Power Announces Launch of NuScale Diverse Energy Platform (NuDEP)," (Business Wire. Business Wire, 22 Apr. 2015. Web. 17 Feb. 2016). 28 Braden Reddall, "Startup NuScale Holds Its Own in Game of Nuclear Giants," (Reuters. Thomson Reuters, 31 Aug. 2012. Web. 17 Feb. 2016). 29 Roger Mayers,"Small Reactors a Strategy for Climate Change," (Idaho Statesman. Idahostatesman.com, 23 Feb. 2016. Web. 25 Feb. 2016).
  • 15. Stevenson 15 Molten salt reactors utilize nuclear waste rather than relying on rods of nuclear material. Most reactors use rods of nuclear material, which results in high levels of nuclear waste. A nuclear reactor running on molten salt would be less likely to result in a nuclear meltdown, less economically burdensome, and diminish nuclear waste. However, this reactor does function on significantly higher temperatures than must reactors due to the melting temperature of molten salt. Another important detail is that the reactor would be smaller than most due to the use of zirconium hydride. The goal is to establish a functioning reactor by 2020 with funding provided by Founders Fund.30 Although there are strong competitors pursuing nuclear energy, there has been much discussion surrounding the ever-evolving relationship with the government. Startups are struggling to meet qualifications and garner funding from the government, resulting in their progress slowing significantly. The government is requiring each startup to reach a specific point of success before guaranteeing funding or loan installments in support of their programs. The installments are dependent upon the success and continuous progress of the startup. However, any significant progression has been impeded due to the Nuclear Regulatory Commission regulations. Without a transparent and realistic set of guidelines and regulations, the private sector will suffer tremendously in their pursuit for nuclear energy programs. In order to expedite the process the Nuclear Regulatory Commission must engage in some sort of new amendment or ____________ 30 Kevin Bullis, "Experiments Start on a Meltdown-Proof Nuclear Reactor," (MIT Technology Review. MIT Technology Review, 10 Feb. 2015. Web. 17 Feb. 2016).
  • 16. Stevenson 16 plan to promote a strong, productive relationship with startups and other private companies.31 The government must recognize that the will not be able to excel and pursue a successful nuclear program without the help of the private sector pursuing alternative nuclear reactors. As more startup companies are pursuing alternate forms of nuclear energy, companies are pursuing other avenues and countries in order to progress in research and development. Companies, such as Bill Gates’ Terrapower, has accepted a deal with the China National Nuclear Corporation to build a prototype in China with the support and funding from the organization. Most interesting is the Department of Energy’s decision to pursue a relationship with the Shanghai Institute of Applied Physics to pursue a design and prototype of a molten salt reactor.34 (Martin - Advanced Nuclear) Although creating an avenue for information sharing is domestically and internationally will reflect positively both on the United States and the development of domestic startups, the United States should increase efforts to support local businesses. Companies should not feel the need to resort to international corporations to support the development, which were pursued in order to help the United States. The government must work to fix the misconnect between the bureaucracy and the private corporations and help expedite production domestically. Conclusion The advancement of nuclear energy in the United States is directly related to governmental support of the private sector. The Department of Energy established the Task Force on the Future of Nuclear Energy and the Gateway for Accelerated Innovation in Nuclear to _____________ 31 Fehrenbacher, "How Startups Can Save Nuclear Tech." 32 Richard Martin, "Advanced Nuclear Industry to Regulators: Give Us a Chance," (MIT Technology Review. MIT Technology Review, 13 Oct. 2015. Web. 12 Feb. 2016).
  • 17. Stevenson 17 support the financial burden of research and development for startup businesses and the private sector. However, new research projects are experiencing severe setbacks from the extensive licensing program of the Nuclear Regulatory Commission. Congress has introduced a variety of bills to reform the licensing program, such as S.2795, “Nuclear Energy Innovation and Modernization Act.” An amendment, such as S.2795, suggests reforming the Nuclear Regulatory Commission to maintain the same security protocols and requirements, but expedite the licensing program in order to allow for and encourage innovation and research. Startups have begun to expand and rapidly progress in the nuclear energy industry; however, the recent delay from the Nuclear Regulatory Commission to grant licenses and the Department of Energy to contribute funding to all startups have left businesses seeking alternative means to provide resources. Startups, such as TerraPower, have pursued relationships with China to help expedite research and development. In order for nuclear power to excel in the United States, the government should maintain momentum and pursue reformations of the Nuclear Regulatory Commission. By promoting a harmonious relationship between the private and public sectors, startups and venture capitalists will be better suited for gaining progress. The Department of Energy must maintain and support its initiatives to provide funding and Congress must reform the licensing program of the Nuclear Regulatory Commission. Together, the government will be able to support the future of nuclear power in the United States.
  • 18. Stevenson 18 Works Cited Boyle, Alan. "Rays of Hope: Fringe Fusion Ventures Take Small Steps Toward Energy Leap." NBC News. NBCNews.com, 5 June 2015. Web. 17 Feb. 2016. Bullis, Kevin. "Experiments Start on a Meltdown-Proof Nuclear Reactor." MIT Technology Review. MIT Technology Review, 10 Feb. 2015. Web. 17 Feb. 2016. Conca, James. "America's Navy The Unsung Heroes Of Nuclear Energy." Forbes. Forbes Magazine, 28 Oct. 2014. Web. 18 Feb. 2016. Conca, James. "U.S. Senate Wants To Decrease CO2 By Increasing Nuclear Energy." Forbes. Forbes Magazine, 1 Feb. 2016. Web. 03 Feb. 2016. Dumaine, Brian. "Why Jeff Bezos, Peter Thiel, and Others Are Betting on Fusion." Fortune. Times, Inc., 28 Sept. 2015. Web. 17 Feb. 2016. "Executive Order 12344--Naval Nuclear Propulsion Program." The U.S. National Archives and Records Administration. The U.S. National Archives and Records Administration, 1 Feb. 1982. Web. 19 Feb. 2016. "FACT SHEET: Feasibility of Low Enriched Uranium Fuel in Naval Reactor Plants." The White House. The White House, 31 Mar. 2016. Web. 19 Apr. 2016. Fehrenbacher, Katie. "How Startups Can Save Nuclear Tech." Fortune. Time Inc., 06 July 2015. Web. 03 Feb. 2016. "GAIN: Bridging the Gap to Advance Nuclear Technologies." GAIN: Gateway for Accelerated Innovation in Nuclear. Department of Energy: Office of Nuclear Energy, n.d. Web. 02 Mar. 2016. Gibson, Karen. "Secretary of Energy Advisory Board (SEAB) Task Force on the Future of Nuclear Power." Energy.gov. U.S. Department of Energy, n.d. Web. 25 Apr. 2016.
  • 19. Stevenson 19 Grandoni, Dino. "Start-Ups Take On Challenge of Nuclear Fusion." The New York Times. The New York Times, 25 Oct. 2015. Web. 10 Feb. 2016. "Inhofe, Booker, Whitehouse, Crapo Introduce the Nuclear Energy Innovation and Modernization Act | U.S. Senator for Oklahoma." Press Release: Inhofe, Booker, Whitehouse, Crapo Introduce the Nuclear Energy Innovation and Modernization Act. James M. Inhofe, U.S. Senator of Oklahoma, 13 Apr. 2016. Web. 22 Apr. 2016. Kuperman, Alan J. "Obama: The Anti-Anti-Nuke President." The New York Times. The New York Times, 25 Mar. 2016. Web. 21 Apr. 2016. "Major Security Enhancements at U.S. Nuclear Energy Facilities Since 9/11."Nuclear Energy Institute. Nuclear Energy Institute, n.d. Web. 4 Feb. 2016. Martin, Richard. "Advanced Nuclear Industry to Regulators: Give Us a Chance." MIT Technology Review. MIT Technology Review, 13 Oct. 2015. Web. 12 Feb. 2016. Martin, Richard. "TerraPower Quietly Explores New Nuclear Reactor Strategy." MIT Technology Review. MIT Technology Review, 21 Oct. 2015. Web. 17 Feb. 2016. Martin, Richard. "White House Strikes a Blow for Advanced Nuclear Reactors." MIT Technology Review. MIT Technology Review, 19 Nov. 2015. Web. 04 Feb. 2016. Matishak, Martin. "The Navy Hunts for Its Next-Generation Nuclear Submarine." The Fiscal Times. The Fiscal Times, 5 Jan. 2016. Web. 18 Feb. 2016. Mayers, Roger. "Small Reactors a Strategy for Climate Change." Idaho Statesman. Idahostatesman.com, 23 Feb. 2016. Web. 25 Feb. 2016. Mitchell Waldrop, M. "Plasma Physics: The Fusion Upstarts." Nature.com. Nature Publishing Group, 23 July 2014. Web. 17 Feb. 2016. M.S.L.J. "The Supreme Court Puts the Clean Power Plan on Hold." The Economist. The
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