Madame Chairman and Members of the Subcommittee:

I am John Nolan, Director of the Department of Energy's (DOE) Hanford Engineering Development Laboratory. I appeared before this Subcommittee last year and appreciate this opportunity to do so again. The Westinghuse Hanford Company has the privilege of operating this Laboratory for the government (since 1970). The Laboratory conducts activities vital to DOE's Nuclear Energy Research and Development programs. I will discuss some recent key accomplishments, some future operations consistent with the FY-87 budget request, and my concern that FY-87 funding may not enable us to accomplish all that we have set out to do. Descriptions, status, accomplishments, and schedules for our programs and facilities are detailed in the attachments to my written testimony.

The Fast Flux Test Facility (FFTF), and its supporting facilities and laboratories comprise the most modern and powerful fuels and materials irradiation test complex in the world and is a major United States asset and investment. Since I spoke to you last, the FFTF has completed another year of troublefree operation and achieved a 71% capacity factor in 1985. This is further demonstration of the operational reliability of the systems and components of this Liquid Metal Reactor (LMR) plant.

Work on the first generation one-year lifetime mixed oxide fuel system is now complete and has demonstrated a lifetime 50% greater than the design goal. Data have been obtained on the second generation two-year lifetime fuel design that establishes that capability. The lead test for the third generation three-year lifetime fuel has reached 75% of its goal. The control assemblies have exceeded their design goal lifetime by 60%, without breach or scram time degradation. Quality data from full size core components are available for development and licensing of advanced design LMR plants.

Fabrication of a partial core load of the three-year lifetime mixed oxide fuel is on schedule for insertion in the FFTF plant late in FY-86. The three-year performance test will start as part of the FY-87 program. This third generation fuel has the potential for reducing the fuel cycle costs of future LMR plant designs by 3.5 mills/KW hr. (about 30-40%), which approaches competitiveness with existing commercial LWR fuel costs.

The LMR can be designed with exceptional safety margins. Testing started in 1985 will provide a better understanding of intrinsic shutdown mechanisms. These tests will continue through FY-86, FY-87, and beyond and have the capability to lead to simplified designs and capital cost reductions in LMR plant designs of $400-$500 million, and reduced risk to investors from the potential of reactor damage during

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an off-normal event.

We also demonstrated successfully that computerized expert systems incorporating artificial intelligence characteristics could be integrated with existing procedures on an operating LMR. A system for determining in detail the refueling moves necessary to go from one core configuration to a new core configuration has been validated and is currently being utilized in FFTF. Sophisticated systems for identifying fuel pin leakers and performing self-diagnosis of thermocouple operations will be developed and demonstrated in FY-87 and will lead to further improvements in safe, reliable operation.

All of this work finds direct application in the innovative LMR design efforts currently in progress at Rockwell International, at General Electric and at EPRI (COMO). During 1985, sixty-five individual items of data or design consultation were provided to these designers by HEDL, and much of our experience and expertise has been incorporated in their concepts.

Installation of the process equipment for the Secure Automated Fuel Fabrication line into the Fuels and Materials Examination Facility (FMEF) will be completed by the end of FY-86. Electrical and control systems completion and checkout is to be accomplished in FY-87 so that readiness to initiate plutonium fuel fabrication can be achieved in FY-88. There is no other production scale or commercial capability for mixed oxide fuel fabrication in the United States. This line will have the capability for remote, automated fuel fabrication and will demonstrate the application of various automation technologies. Our Materials Open Test Assembly is essentially its own computer controlled laboratory within the FFTF reactor. This flexibility and capability of the FFTF plant to accommodate multiple missions is being used to obtain material behavior data for the Fusion Program and for Japan as part of an international agreement. Tests for the space reactors program will be initiated in FY-86. In FY-87, additional tests for the Fusion Program, for Japan, and for the space reactor program are planned.

Illustrating the multiple missions that FFTF can serve, a full size metal fuel assembly will be installed in FY-86 for start of its prototypic performance test in FY-87. Also, tests will be run to determine the capability for the efficient production of Cobalt-60 or other isotopes for medical or agricultural uses.

As a synergistic technical transfer of our liquid metal reactor fuels and materials design and test fabrication and evaluation capability, we have been involved starting in FY-84 with such activities for space reactor power applications. In November 1985, the Hanford Engineering Development Laboratory was selected by the Department of Energy as the preferred site for the Ground Engineering Systems Test for the SP-100 program. Advantage can be taken of existing on-site facilities and of the management and technical capabilities of the Laboratory personnel. We appreciate the confidence DOE has shown in our capability to perform this function. As requested by this subcommittee our plans for proceeding are given as Attachment 8 of my written testimony.

That is the full scope of the Hanford Engineering Development Laboratory activities for DOE's Nuclear Energy Research and Development Programs. The FY-87 budget adequately supports the space reactor missions we have been assigned. However, the concern I have is that the preliminary allocation of the proposed FY-87 budget will not enable us to operate the FFTF, provide a fuel supply, and do the necessary supporting technology to achieve DOE's advanced reactor program goal of maintaining the LMR as an option for the United States of America, to assure energy security, stability, and strength. The LMR is a prime candidate for an advanced, simpler, inherently safe, economic plant. Our efforts are also consistent with the goals suggested by recent ERAB studies for DOE. Demonstrations of long lifetime fuel capability and inherent safety characteristics of a LMR provide visible progress of intermediate accomplishment meaningful to long term objectives. Projected electrical energy requirements predict a future need; however, an alternate major new energy system cannot simply be called into existence but must be developed over a period of time.

With respect to the Advanced Reactors program funding for FY-86, the DOE budgets as agreed to by this Committee enable the HEDL to progress with its mission as described in my written testimony last year and this year. The LMR program funding reduction from FY-85 to FY-86 was 12%, on top of prior reductions from FY-82 to FY-85 of 27%. The preliminary allocation of the FY-87 budget results in a new 16% reduction (240 people). Since last year at this time the number of people working on the LMR program has been reduced from 1350 to 1200. I expect to be at 1150 people by the end of FY-86. Another 240 person reduction in FY-87 would prevent us from accomplishing the LMR program goals discussed above.

I believe this Subcommittee should support the transfer of LMR nuclear technology expertise to the design of reactors for space applications. However, in addition, it is vital that this Subcommittee continue to support the research and development necessary to keep the Liquid Metal Reactor (LMR) option available to the United States. Operation of the FFTF, demonstration of a three-year residence time fuel supply, proof of inherent safety, and completion of the Secure Automated Fuel Fabrication line (the only production scale mixed oxide fuel fabrication capability in the United States) are key to that availability. The United States must not lose the promise of the LMR option.

Thank you for your past support and for allowing me to testify today.

JOHN E. NOLAN
Director

Hanford Engineering Development Laboratory

John E. Nolan has been Director of the Hanford Engineering Development Laboratory and President of Westinghouse Hanford Company since 1980. Throughout his 36-year career, he has been directly involved in many of the country's advanced nuclear development projects and programs. The successful projects and programs Mr. Nolan has been proudly associated with include the U.S.S. NAUTILUS, the first nuclear submarine; the U.S. ENTERPRISE and U.S.S. LONG BEACH, the first nuclear surface ships; the SHIPPINGPORT ATOMIC POWER STATION, the first commercial nuclear power plant in the United States; the CLINCH RIVER BREEDER REACTOR PROJECT; and the FAST FLUX TEST FACILITY, the world's largest and most successful advanced test reactor.

Mr. Nolan started his career at Westinghouse in 1950 on the Graduate Student Progrant. He joined the Bettis Atomic Power Laboratory in 1951 and held various assignments there for 18 years. From 1951 to 1955, he designed instrumentation and control systems for the first nuclear submarine, the U.S.S NAUTILUS, and its prototype (SIW). From 1955 to 1957, Mr. Nolan managed a group responsible for the test program and overall plant analysis for the first commercial nuclear power station in the country, the Shippingport Atomic Power Station. From 1958 to 1960, he had various control and plant engineering management assignments for the first surface ships and their prototype (AIW). From 1960 to 1965, Mr. Nolan was responsible for the plant engineering efforts associated with increasing the capability of the Shippingport Atomic Power Station from 60 to 150 MW(e). From 1965 to 1969, he was Director of Naval Training at Bettis, responsible for curriculum, textbooks, and training methods for the officers and enlisted personnel of the U.S. Nuclear Navy.

In 1969, Mr. Nolan transferred to Westinghouse's Advanced Reactors Division where he worked on the design of the Fast Flux Test Facility through 1975. Mr. Nolan was involved in the design of the Clinch River Breeder Reactor Plant from 1976 to 1979, serving as Westinghouse's Project Manager for the CRBRP from 1977 to 1979. In September 1979, he transferred to the Westinghouse Hanford Company (WHC) and became the FFTF Project Manager. In August 1980, Mr. Nolan became WHC President with responsibility for directing the Hanford Engineering Development Laboratory for the U.S. Department of Energy.

John Nolan is a Senior Member of the Institute of Electrical and Electronic Engineers (IEEE) and a member of the American Society of Mechanical Engineers (ASME) and the American Nuclear Society (ANS), and is listed in American Men of Science, Who's Who in Engineering, and Who's Who in Atoms. Mr. Nolan participated as a member of the Atomic Energy Commission plant design team's visit to Europe in 1971. He was a member of the U.S. Liquid Metal Fast Breeder Reactor Plant Experience Working Group and visited Japan in 1978. As a member of the DOE Advanced Reactor Fact Finding Team, he visited Japan and Europe in 1985. He received the Westinghouse Order of Merit in 1984. He was born in Brooklyn, N.Y. in 1925 and married Dorothea Scheuermann in 1952. They live in Richland, Washington and have raised seven children.