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HRG. 107–144 (Pt. 1) NATIONAL ENERGY ISSUES HEARINGS BEFORE THE COMMITTEE ON ENERGY AND NATURAL RESOURCES UNITED STATES SENATE ONE HUNDRED SEVENTH CONGRESS FIRST SESSION TO RECEIVE TESTIMONY ON THE ADMINISTRATION’S NATIONAL ENERGY POLICY REPORT, AND TO RECEIVE TESTIMONY ON THE PRICE-ANDERSON ACT PROVISIONS OF PENDING ENERGY LEGISLATION, INCLUDING S. 388, THE NATIONAL ENERGY SECURITY ACT OF 2001; S. 472, NU- CLEAR ENERGY ELECTRICITY SUPPLY ASSURANCE ACT OF 2001; AND S. 597, THE COMPREHEN- SIVE AND BALANCED ENERGY POLICY ACT OF 2001 TO RECEIVE TESTIMONY ON PROPOSED AMENDMENTS TO THE PRICE-ANDERSON ACT (SUBTITLE A OF TITLE IV OF S. 388; SUBTITLE A OF TITLE I OF S. 472; TITLE IX OF S. 597) AND NUCLEAR PRODUCTION AND EFFICIENCY INCENTIVES (SUBTITLE C OF TITLE IV OF S. 388; AND SECTION 124 OF S. 472) NATIONAL ENERGY SECURITY ACT AND OTHER PENDING LEGISLATION MAY 24, 2001 JUNE 26, 2001 JULY 12, 2001 PART 1 ( Printed for the use of the Committee on Energy and Natural Resources U.S. GOVERNMENT PRINTING OFFICE 75–354 PS WASHINGTON : 2001 For sale by the Superintendent of Documents, U.S. Government Printing Office Internet: bookstore.gpo.gov Phone: (202) 512-1800 FAX: (202) 512-2250 Mail: Stop SSOP, Washington, DC 20402-0001 VerDate 11-MAY-2000 13:09 Oct 02, 2001 Jkt 000000 PO 00000 Frm 00001 Fmt 5011 Sfmt 5011 75-354 SENERGY2 PsN: SENERGY2 COMMITTEE ON ENERGY AND NATURAL RESOURCES FRANK H. MURKOWSKI, Alaska, Chairman PETE V. DOMENICI, New Mexico JEFF BINGAMAN, New Mexico DON NICKLES, Oklahoma DANIEL K. AKAKA, Hawaii LARRY E. CRAIG, Idaho BYRON L. DORGAN, North Dakota BEN NIGHTHORSE CAMPBELL, Colorado BOB GRAHAM, Florida CRAIG THOMAS, Wyoming RON WYDEN, Oregon RICHARD C. SHELBY, Alabama TIM JOHNSON, South Dakota CONRAD BURNS, Montana MARY L. LANDRIEU, Louisiana JON KYL, Arizona EVAN BAYH, Indiana CHUCK HAGEL, Nebraska DIANNE FEINSTEIN, California GORDON SMITH, Oregon CHARLES E. SCHUMER, New York MARIA CANTWELL, Washington BRIAN P. MALNAK, Staff Director DAVID G. DYE, Chief Counsel JAMES P. BEIRNE, Deputy Chief Counsel ROBERT M. SIMON, Democratic Staff Director SAM E. FOWLER, Democratic Chief Counsel BRYAN HANNEGAN, Staff Scientist COMMITTEE ON ENERGY AND NATURAL RESOURCES JEFF BINGAMAN, New Mexico, Chairman DANIEL K. AKAKA, Hawaii FRANK H. MURKOWSKI, Alaska BYRON L. DORGAN, North Dakota PETE V. DOMENICI, New Mexico BOB GRAHAM, Florida DON NICKLES, Oklahoma RON WYDEN, Oregon LARRY E. CRAIG, Idaho TIM JOHNSON, South Dakota BEN NIGHTHORSE CAMPBELL, Colorado MARY L. LANDRIEU, Louisiana CRAIG THOMAS, Wyoming EVAN BAYH, Indiana GORDON SMITH, Oregon BLANCHE L. LINCOLN, Arkansas JIM BUNNING, Kentucky PETER G. FITZGERALD, Illinois CONRAD BURNS, Montana ROBERT M. SIMON, Staff Director SAM E. FOWLER, Chief Counsel BRIAN P. MALNAK, Republican Staff Director JAMES P. BEIRNE, Republican Chief Counsel Note: Senator Bingaman assumed the Chairmanship on June 6, 2001. (II) VerDate 11-MAY-2000 13:09 Oct 02, 2001 Jkt 000000 PO 00000 Frm 00002 Fmt 5904 Sfmt 5904 75-354 SENERGY2 PsN: SENERGY2 COMMITTEE ON ENERGY AND NATURAL RESOURCES JEFF BINGAMAN, New Mexico, Chairman DANIEL K. AKAKA, Hawaii FRANK H. MURKOWSKI, Alaska BYRON L. DORGAN, North Dakota PETE V. DOMENICI, New Mexico BOB GRAHAM, Florida DON NICKLES, Oklahoma RON WYDEN, Oregon LARRY E. CRAIG, Idaho TIM JOHNSON, South Dakota BEN NIGHTHORSE CAMPBELL, Colorado MARY L. LANDRIEU, Louisiana CRAIG THOMAS, Wyoming EVAN BAYH, Indiana RICHARD C. SHELBY, Alabama DIANNE FEINSTEIN, California CONRAD BURNS, Montana CHARLES E. SCHUMER, New York JON KYL, Arizona MARIA CANTWELL, Washington CHUCK HAGEL, Nebraska THOMAS R. CARPER, Delaware GORDON SMITH, Oregon ROBERT M. SIMON, Staff Director SAM E. FOWLER, Chief Counsel BRIAN P. MALNAK, Republican Staff Director JAMES P. BEIRNE, Republican Chief Counsel (III) VerDate 11-MAY-2000 13:09 Oct 02, 2001 Jkt 000000 PO 00000 Frm 00003 Fmt 5904 Sfmt 5904 75-354 SENERGY2 PsN: SENERGY2 VerDate 11-MAY-2000 13:09 Oct 02, 2001 Jkt 000000 PO 00000 Frm 00004 Fmt 5904 Sfmt 5904 75-354 SENERGY2 PsN: SENERGY2 C O N T E N T S Hearings: Page May 24, 2001 ..................................................................................................... 1 June 26, 2001 .................................................................................................... 33 July 12, 2001 ..................................................................................................... 77 STATEMENTS MAY 24, 2001 Abraham, Hon. Spencer, Secretary, Department of Energy ................................ 7 Akaka, Hon. Daniel K., U.S. Senator from Hawaii .............................................. 5 Bayh, Hon. Evan, U.S. Senator from Indiana ....................................................... 19 Bingaman, Hon. Jeff, U.S. Senator from New Mexico .......................................... 7 Campbell, Hon. Ben Nighthorse, U.S. Senator from Colorado ............................ 3 Cantwell, Hon. Maria, U.S. Senator from Washington ........................................ 30 Feinstein, Hon. Dianne, U.S. Senator from California ......................................... 23 Graham, Hon. Bob, U.S. Senator from Florida ..................................................... 26 Johnson, Hon. Tim, U.S. Senator from South Dakota .......................................... 4 Landrieu, Hon. Mary L., U.S. Senator from Louisiana ........................................ 28 Murkowski, Hon. Frank H., U.S. Senator from Alaska ....................................... 1 Smith, Hon. Gordon, U.S. Senator from Oregon ................................................... 6 Wyden, Hon. Ron, U.S. Senator from Oregon ....................................................... 17 JUNE 26, 2001 Bingaman, Hon. Jeff, U.S. Senator from New Mexico .......................................... 33 Bradburne, John, President and Chief Executive Officer, Fluor Fernald, Inc., Cincinnati, OH, on behalf of Energy Contractors Price-Anderson Group ....... 45 Domenici, Hon. Pete V., U.S. Senator from New Mexico ..................................... 34 Fertel, Marvin S., Senior Vice President, Business Operations, Nuclear En- ergy Institute ........................................................................................................ 49 Fygi, Eric J., Deputy General Counsel, Department of Energy ........................... 34 Gray, Joseph R., Associate General Counsel for Licensing and Regulation, U.S. Nuclear Regulatory Commission ................................................................ 38 Landrieu, Hon. Mary L., U.S. Senator from Louisiana ........................................ 70 Murkowski, Hon. Frank H., U.S. Senator from Alaska ....................................... 43 Pica, Erich, Economic Policy Analyst, Friends of the Earth ................................ 60 Quattrocchi, John L., Senior Vice President, Underwriting, American Nuclear Insurers, West Hartford, CT ............................................................................... 53 JULY 12, 2001 Aurilio, Anna, Legislative Director, U.S. Public Interest Research Group ......... 159 Bingaman, Hon. Jeff, U.S. Senator from New Mexico .......................................... 77 Blake, Francis, Deputy Secretary, Department of Energy ................................... 90 Burton, Bill, Partner, Jones, Day, Reavis & Pogue, Houston, TX ....................... 116 Campbell, Hon. Ben Nighthorse, U.S. Senator from Colorado ............................ 77 Clusen, Charles M., Senior Policy Analyst, Natural Resources Defense Coun- cil ........................................................................................................................... 122 Durbin, Hon. Richard J., U.S. Senator from Illinois ............................................ 109 Fertel, Marvin S., Senior Vice President, Business Operations, Nuclear En- ergy Institute ........................................................................................................ 150 Hood, Jerry, Special Assistant to the General President for Energy; Principal Officer of Local 959 in Alaska, International Brotherhood of Teamsters, Anchorage, AK ...................................................................................................... 131 Johnson, Hon. Tim, U.S. Senator from South Dakota .......................................... 78 (V) VerDate 11-MAY-2000 13:09 Oct 02, 2001 Jkt 000000 PO 00000 Frm 00005 Fmt 5904 Sfmt 5904 75-354 SENERGY2 PsN: SENERGY2 VI Page Johnston, Hon. J. Bennett, Chairman, Johnston & Associates, LLC, Washing- ton, D.C. ................................................................................................................ 110 Murkowski, Hon. Frank H., U.S. Senator from Alaska ....................................... 79 Norton, Hon. Gale, Secretary, Department of the Interior .................................. 81 Thadani, Ashok C., Director, Office of Nuclear Regulatory Research, Nuclear Regulatory Commission, Rockville, MD ............................................................. 156 Young, Tom, Vice President of Business Development, Mariner Energy, Inc., Houston, TX, on behalf of the Independent Petroleum Association of Amer- ica .......................................................................................................................... 134 APPENDIXES APPENDIX I Responses to additional questions .......................................................................... 165 APPENDIX II Additional material submitted for the record ........................................................ 171 VerDate 11-MAY-2000 13:09 Oct 02, 2001 Jkt