STATEMENT OF BEN C. RUSCHE Mr. Chairman and Members of the Subcommittee: I am pleased to appear before you today to present the FY 1987 budget for the U.S. Department of Energy's (DOE's) Office of Civilian Radioactive Waste Management. I will highlight the major activities planned for FY 1987 under the Nuclear Waste Fund program, as well as under the Civilian Radioactive Waste Research and Development program and provide a current status of implementation of and plans under the Nuclear Waste Policy Act of 1982 (NWPA). Since the NWPA requires the annual submission of a triennial budget under the Nuclear Waste Fund, in my discussion of the FY 1987 Nuclear Waste Fund program, I will include estimates for FY 1988 and FY 1989. BUDGET OVERVIEW The NWPA created the Nuclear Waste Fund which is financed by fees collected from owners and generators of spent nuclear fuel and high-level radioactive waste. The FY 1987 budget request for the Nuclear Waste Fund is $769.3 million, compared to $499.0 million for FY 1986. The Nuclear Waste Fund budget estimate for FY 1988 is $863.0 million and for FY 1989 is $799.2 million. Research and development (R&D) activities not financed under the Nuclear Waste Fund are funded under the Energy Supply R&D appropriation in a program entitled Civilian Radioactive Waste R&D. The FY 1987 budget request for Civilian Radioactive Waste R&D is $6.5 million, compared to $16.0 million in FY 1986. The FY 1986 budget request for budget authority funded by the Nuclear Waste Fund is summarized in Table 1. The FY 1987 Departmental budget request for Civilian Radioactive Waste R&D is summarized in Table 2. Under the Nuclear Waste Fund, the increased FY 1987 request will provide for extensive site characterization activities to begin exploratory shaft design and construction and to conduct intensive engineering tests and analyses to support the waste package and repository designs for the first repos.co. These activities will be conducted at each of the three candidate repository sites approved by the President for site character cation DOE plans to formally recommend three sites for maracterization to the President in Spring 1986. The increase in FT 1987 will also provide for preparation for site field investigations in crystalline rock under consideration for a second repository and design of the second repository. While construction of a second repository as not authorized by Congress, other activities involving siting and design of a second repository are required under the NWPA. In addition to an increase in the budget related to the repository activities, the FY 1987 budget request also represents a significant increase over FY 1986 in activities related to Monitored Retrievable Storage MRS), should Congress adopt the proposal required by Section 141 of the NWPA. The FY 1987 request of $46 million compared to $3.0 million in FY 1986 supports Congressional approval to proceed with activities that are critical to the deployment of an MRS facility. In that proposal, DC will recommend the construction of an MRS to receive, consolidate and package spent fuel for bulk shipment to a repository. The program proposed to be funded from the Nuclear Waste Fund puts first priority on the first geologic repository and the associated transportation, integration and management systems. Second priority is given to MRS because of its potential for improving the overall system, followed by a third priority to the second repository siting activity. Neither the MRS nor the second repository is authorized for construction by the NWPA, but it is clear that the MPS offers the earliest and best means for assuring that the objectives of the NWPA are carried out. 292 292 Based on projected gross nuclear electricity generation Based on average yield of Treasury security portfolio. TABLE 2 FY 1987 CONGRESSIONAL BUDGET ENERGY SUPPLY RESEARCH AND DEVELOPMENT ACTIVITIES a/ Reflects a general reduction of $30,000; APD Reduction, and a reduction of $631,000 in compliance with the Gramm-Rudman-Hollings Deficit Reduction Act, PL 99-177. An increase in Transportation and Systems Integration in FY 1987 is also requested. The FY 1987 request of $33.4 million compared to the FY 1986 appropriation of $21.3 million from the Nuclear Waste Fund represents an effort to be initiated during FY 1986 for the private sector to design, fabricate and test prototype casks for DOE to consider in developing transportation casks for shipping spent fuel from reactors directly to a repository or from reactor to an MRS. The FY 1987 budget request under the Civilian Radioactive Waste R&D program of $6.5 million represents a decrease from the FY 1986 budget of $16.0 million. Essentially, this results from the fact that no funds are being requested for research and development concerning alternatives for permanent disposal of spent fuel and high-level waste. During FY 1986 and previous years, the principal alternative disposal concept funded has been subseabed disposal. Activities related to research and development in alternative disposal concepts called for in Section 222 of the NWPA are not proposed for funding after FY 1986. NUCLEAR WASTE FUND PROGRAM With the overview of the FY 1987 budget request in mind, I would like now to give a brief status of the program. The NWPA calls for DOE to site, design, construct, operate and close the Nation's first geologic repository for spent fuel and high-level waste; to site and design a second repository; to submit a proposal to Congress on the need for and feasibility of Monitored Retrievable Storage facilities; to develop a transportation system and carry out certain other activities in support of the development of a disposal system. It established a method of disposal, a schedule, technical processes and a funding mechanism- the Nuclear Waste Fund ensure successful implementation of the NWPA. to Interwoven throughout these activities is the requirement for an extensive system of interactions providing checks and balances to ensure Federal accountability to the States, affected Indian Tribes, the public, the electric utilities, their ratepayers and the Congress. To ensure the accountability of the Federal Government specifically, DOE to the other parties - and concerned citizens, we have on many occasions expanded the interactive process beyond that called for in the NWPA. We have been undertaking steps to ensure that the affected States and Indian Tribes can provide early input to DOE's decisionmaking processes. For example, we have invited affected States and Indian Tribes to participate in the Office of Civilian Radioactive Waste Management internal coordinating groups on socioeconomic and environmental issues. In spite of these actions, DOE is often criticized by many of the affected parties for not providing the opportunity for "effective" participation. In passing the NWPA, Congress found |