The Nuclear Regulatory Commission cannot issue a license for the construction and operation of a new nuclear reactor in Maryland–that is the ruling of the NRC's Atomic Safety and Licensing Board (ASLB) handed down Thursday.
In their decision, the ASLB agreed with intervenors that the Calvert Cliffs 3 reactor project planned for the shores of Chesapeake Bay violated the Atomic Energy Act's prohibition against "foreign ownership, control, or domination." UniStar, the parent company for the proposal, is wholly owned by French energy giant Électricité de France (EDF).
EDF had originally partnered with Constellation Energy, the operator of two existing Calvert Cliffs reactors, but Constellation pulled out of the project in 2010. At the time, Constellation balked at government requirements that Constellation put $880 million down on a federal loan guarantee of $7.6 billion (about 12 percent). Constellation wanted to risk no more than one or two percent of their own capital, terms the feds were then willing to meet if Constellation and EDF could guarantee the plant's completion. Constellation also found that requirement too onerous.
Constellation has since been purchased by Exelon.
The ASLB decision technically gives EDF 60 days to find a new American partner, but given the history and the current state of the energy market, new suitors seem highly unlikely. It marks only the second time a license has been denied by the ASLB. (The first, for the Byron, Illinois plant in 1984 was overturned on appeal. Byron opened the next year, and Illinois's groundwater has never been the same.) The NRC also declined to grant a license to the South Texas Project late last year when US-based NRG Energy (corporate ID courtesy of the Department of Redundancy Department) pulled out of the project, leaving Japanese-owned Toshiba as the only stakeholder.
The Calvert Cliffs intervenors were led by the Nuclear Information and Resource Service (NIRS), which has been fighting Calvert Cliffs 3 almost since its inception. NIRS was joined by Beyond Nuclear, Public Citizen and Southern Maryland CARES.
Michael Mariotte, Executive director of NIRS, called Thursday's decision "a blow to the so-called 'nuclear renaissance,'" noting that back in 2007, when permit requests were submitted for Calvert Cliffs 3, the project was considered the "flagship" of a coming fleet of new reactors. "Now," said Mariotte, "it is a symbol for the deservedly failed revival of nuclear power in the US."
A symbol, yes, but far from the only symbol.
Earlier in the week, Exelon notified the Nuclear Regulatory Commission that it would withdraw its application for an "early site permit" for a proposed nuclear facility near Victoria, Texas. A combined construction and operating license was originally sought for two reactors back in 2008, but by 2010, with demand down and nuclear costs continuing to skyrocket, Exelon backed off that request, essentially downgrading it to "just keeping a toe in the water" status.
Now, with the price of a new nuke plant climbing higher still–even though the economy remains sluggish–and with natural gas prices continuing to fall, that toe has been toweled dry. "Today's withdrawal brings an end to all project activity," said an Exelon statement issued Tuesday.
And on Monday, the operators of the troubled San Onofre Nuclear Generating Station let it be known that they would start removing the radioactive fuel from Unit 3 sometime in September. Unit 3 has been offline since it scrammed after a heat exchange tube leaked radioactive steam at the end of January. Later inspection revealed that numerous tubes on the unit, as well as on its previously shut-down twin, showed alarming and dangerous amounts of wear.
Removing the fuel rods all-but-confirms what most experts already knew: SONGS 3 will never come back online. Southern California Edison, the plant's majority operator, might not want to admit that, but earlier in August, SCE announced plans for 730 layoffs, roughly a third of the plant's workforce. That size of reduction makes repairing, testing and restarting both San Onofre reactors unfeasible. Or, to look at it through the other end of the telescope, as David Lochbaum, director of the Union of Concerned Scientists put it, "reducing the scope of required work at the jobsite is a good thing to do before discharging workers."
Mothballing Unit 3 will reduce the workload, but with the entire facility offline for most of this year, SONGS is already an economic sinkhole. Strangely, despite failing to generate a single kilowatt of energy in eight months, SCE and co-owner San Diego Gas & Electric have continued to collect $54 million of revenue every month from California ratepayers.
The California Public Utilities Commission has to investigate rate cuts when a plant fails to deliver for nine months (so, officially, November and December, for the two SONGS reactors), but that process would start sooner if it were determined that a reactor would never come back into service. Neither San Onofre reactor will restart before the end of the year, and it is now clearer than a San Diego summer sky that the number 3 reactor never will. Scientists know this, engineers know this, utilities commissioners know this, and even Southern California Edison knows this–but SCE won't say it because that would hasten the start of rate rollbacks.
Calvert Cliffs being in the news this time of year also calls to mind how well nuclear plants do in hurricanes. . . as in, not very well at all. Last year, as Hurricane Irene marched up the Atlantic coast, the two existing reactors at Calvert Cliffs had to scram when a dislodged piece of siding caused a short in the main transformer and an "unanticipated explosion within the Protected Area resulting in visible damage to permanent structures or equipment."
As fate would have it, this year's "I" storm, Isaac, necessitated the shutdown of Entergy's Waterford plant, outside of New Orleans. In fact, many plants are required to shutdown when facing winds in excess of 74 mph, "rendering them," as Beyond Nuclear put it, "a liability, rather than an asset during a natural disaster."
And Hurricane Isaac was but one possible symptom of a warming climate that has proven problematic for nuclear plants this summer. Braidwood, Illinois and Millstone in Connecticut had to curtail output or temporarily shutdown this summer because the source water used for cooling the reactors rose above prescribed limits. With summer temperatures expected to climb even more in coming years–and with droughts also anticipated–incidents like these (and like those at Hope Creek, New Jersey, and Limerick, Pennsylvania, in 2010) will become more frequent, leaving nuclear power less able to deliver electricity during the months when it is most in demand.
Of course, the summer of 2012 has also had its share of what might be called "classic" nuclear plant problems–power supply failures, radioactive leaks, and other so-called "unusual incidents." One of the most recent, yet another accident at Palisades in Michigan:
On Sunday [August 12], Palisades shut down due to a leak of radioactive and acidic primary coolant, escaping from safety-critical control rod drive mechanisms attached to its degraded lid, atop its "worst embrittled reactor pressure vessel in the U.S."
And all of the above has happened during a summer when the NRC finally acknowledged (or, more accurately, when a federal court ordered the NRC to acknowledge) that it could no longer pretend the US had a solution for its nuclear waste storage crisis. The commission has stopped issuing new operating licenses, license extensions and construction licenses until it can craft a plan for dealing with the mountains of spent nuclear fuel continuing to accumulate at nuclear facilities across the country.
So, there is no nuclear renaissance. There wasn't one before this summer–there wasn't even one before everyone came to know about the Fukushima disaster. The dangers and costs that have followed nuclear power since its inception have firmly branded it as a technology of the past. The events of 2011 and 2012 have provided more evidence that nuclear power is done as a meaningful energy proposition. The sooner America can also be done with the myth of a possible, sometime, "who knows when," "maybe next year" nuclear renaissance, the sooner the federal government can stop propping up the unsafe and unviable nuclear industry. And the sooner the US can begin a real technological and economic rebirth.