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this revenue cannot be determined accurately at this time. The sale of steam to a utility for conversion to electricity is preferred to the generation of power by the NPR because defense material production would be better separated from electric power production, the initial investment would be reduced, and external institutional interactions with regulatory agencies and utility customers would be reduced. The revenue to be gained can only be determined accurately by negotiations with electric utilities at the

potential sites.

I have rather briefly summarized some of the issues that I feel are important to decisions on the NPR. I would be happy to try to answer questions on these or any other aspects of the ERAB NPR report. Thank you.

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STATEMENT OF WILLIAM R. GRAHAM, SCIENCE ADVISOR TO THE PRESIDENT; AND DIRECTOR, OFFICE OF SCIENCE AND TECHNOLOGY POLICY, EXECUTIVE OFFICE OF THE PRESIDENT

Senator JOHNSTON. May we proceed next to Dr. William Graham. I would like for all witnesses to stay at the table, if you would, and thenwe can have questioning of the entire group as one panel. Mr. GRAHAM. Thank you, Mr. Chairman.

I am testifying here today as the Director of the Office of Science and Technology Policy. I appreciate the invitation to testify before you and also appreciate Energy Secretary Herrington's invitation to consult with him as he prepares to address the subject of the new production

reactor.

Secretary Herrington is, as you know, a valued member of the President's Cabinet, and it is a pleasure to work with him and his associates, including Under Secretary Salgado to my right and Acting Assistant Secretary Wade who was here a moment ago. Of course, the Department of Energy is also consulting with Secretary Carlucci and Director Duncan who are here with us today.

The key issue facing the United States in this area is the reliable, long-term availability of the tritium supply used primarily in nuclear weapons. Of course, this supply must be produced in a safe and environmentally sound manner. As you have heard, the Energy Research Advisory Board has recently completed its review of the four tech

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