The proposal will be accompanied by NRC and EPA comments. The proposal contains extensive and unique provisions with regard to state and local involvement in the MRS program. The most innovative and far-reaching element contained in the proposal is the establishment of an MRS Steering Committee to provide a formal mechanism to obtain State and local input, including recommendations and evaluations regarding the design, construction, operation and, eventually, the decommissioning of the MRS facility. This Committee, composed of State and local government representatives of their own choosing, as well as DOE and industry representatives, would provide guidance, conduct evaluations, and, if necessary, recommend corrective actions with regard to the MRS facility. We are proposing that the Committee's involvement extend to a number environment, safety and health; transportation; public of areas - information; and financial matters. In accordance with other provisions of the NWPA, should Congress approve proceeding with an MRS facility, we are committed to seeking immediately to enter into a formal Consultation and Cooperation Agreement with the host State. The FY 1987 budget request supports proceeding with activities that are critical to deployment of an MRS facility. With this in mind, the FY 1987 request for MRS activities is $46 million compared to the FY 1986 budget appropriation of $3 million. These funds would be used primarily for site data collection and analysis, final design of the facility itself, regulatory compliance studies and State liaison activities. schedule for construction of the MRS allows ten years from the The tine Congress approves our proceeding, to the start up of operations. The FY 1988 estimate is $50 million and the FY 1989 estimate is $53 million. Transportation and Systems Integration The FY 1987 budget request for activities associated with Transportation and Systems Integration is $33.4 million. The FY 1988 estimate is $33.8 million; and the FY 1989 estimate is $31.0 million. The funding request for FY 1987 provides for development of adequate transportation and integrated systems for the shipping and management of nuclear waste among the various components of the disposal system. The FY 1987 major activities include funding for the private sector to design, fabricate and test prototype casks for truck, rail and barge transport based on competitive procurements. Work will be continued to support institutional programs environmental and economic analysis and technology development, data systems and testing and engineering development and systems integration. The FY 1988 and FY 1989 estimates of $33.8 million and $31.0 million, respectively, would fund the continuation of these efforts. Program Management and Support The FY 1987 budget request for program management and technical support is $69.5 million. The FY 1988 estimate is $72.7 million; and the FY 1989 estimate is $72.2 million. The FY 1987 funding level of $69.5 million provides technical support for waste management activities including (a) technical support integration, (b) development of standard materials characterization methods by the Material Characterization Center, and (c) supporting studies including fund management activities. This funding level provides for a sustained staffing level from FY 1986 to FY 1987 of 292 full-time equivalent positions at headquarters and in the Operations Offices for fund management, site investigation, technology development and institutional liaison associated with the technical management of the repository, MRS (if approved), supporting programs and the management of the Nuclear Waste Fund. The FY 1988 and FY 1989 estimates of $72.7 million and $72.2 million, respectively, will provide for program management and technical support associated with site characterization activities at three candidate repository sites, intensified siting efforts in the second repository program, a vigorous MRS program and increasing efforts in transportation systems development. Major emphasis will continue on developing an integrated cost-effective waste disposal system providing full protection of public health and safety and the environment. Nuclear Waste Fund In April 1983, DOE adopted a fee of one mill (one-tenth of a cent) per kilowatt hour charged to utilities for all nucleargenerated electricity beginning April 7, 1983, as specified in the NWPA. Revenues collected from the on-going fee by DOE through December 31, 1985, total approximately $880 million. In addition to spent fuel generated since April 7, 1983, spent fuel or high-level waste generated prior to that date is subject to a fee equivalent to an average charge of one mill per kilowatt hour. Utilities had until June 1985 to decide on one of three payment options. Those who chose to pay in one lump sum by June 1985, to save interest charges, made payments totalling more than $1.4 billion. This represents more than half of the onetime fee liability of $2.3 billion for civilian nuclear waste in existence prior to April 7, 1983. Following receipt of these monies, DOE reimbursed the U.S. Treasury approximately $265 million, the total amount owed on the appropriated debt transferred to the Nuclear Waste Fund upon enactment of the NWPA. In April 1985, the President accepted DOE's recommendation to dispose of defense waste in a commercial repository. The Federal Government, therefore, will pay a fee equivalent to that paid by utilities. This use of the repository will generate additional revenue for the Fund. As stated in DOE's March 1986 Nuclear Waste Fund Fee Adequacy: An Assessment, it is assumed at this time that approximately $3.4 billion (in 1985 dollars) will be collected for costs of handling atomic energy defense wastes over the life of the program. This assumption is made based upon review of several alternatives being considered for the calculation of such fees and, therefore, these estimates are not included in the revenue projections below. The revenue projections based on the one mill per kilowatt hour fee are shown in Table 3. a/ b/ Based on projected gross nuclear electricity generation |