HOUSE PASSED ENERGY AND WATER APPROPRIATIONS BILL

ECA Staff | 10/27/2023

After three weeks of nominations, votes, and chaos, the House finally has their speaker. On October 25th, Congressman Mike Johnson (LA-R-04) was elected as the Speaker of the House. On Thursday, October 26th, the House passed their second bill with their new speaker. 

H.R. 4394 - Energy and Water Development and Related Agencies Appropriations Act, 2024 was first introduced in the House on June 30th, 2023. ECA initially released a summary of both House and Senate Energy & Water Appropriations that can be read here. 

This bill provides $56.958 billion in discretionary spending that will support and advance our national security, energy security, amd economic competitiveness. The $56.958 billion is $2.963 billion below the FY 2024 Presidential request. This bill provides $32.513 billion in defense spending, which is an increase of $1.113 billion above the FY23 enacted level. It also provides $24.445 billion in non-defense spending, which is a decrease of $857 million below the FY23 enacted level and $2.63 billion below the Presidential request. 

This includes $24 billion for the National Nuclear Security Administration. Under the Department of Energy, this includes $7.073 billion in Defense Environmental Cleanup. As well as $341 million for Non-Defense Cleanup. 

This bill also supports domestic uranium enrichment capabilities, including high-assay low enriched uranium (HALEU) availability. As well as advancing small modular reactor and advanced reactor demonstration projects. 

The next step for this would be for the Senate to pass the bill. However, both chambers have differing priorities that will need to be worked through in committee. 

ECA will continue to follow the Energy and Water Bill and provide updates as it continues to move across the chambers. For more information read the ECA Energy and Water Appropriations summary here. 

ECA WEBINAR: CLEANUP TO CLEAN ENERGY: How to Develop a Project Federal Land

Join ECA on Tuesday, October 31 at 2pm for an engaging discussion on DOE's Cleanup to Clean Energy Initiative "Cleanup to Clean Energy: How to Develop a Project on Federal Land". Register to learn more from experts, Candice Robertson, Senior Policy Advisor, DOE-EM, Seth Kirshenberg, ECA Executive Director, and Peter Flynn, Bostonia Partners.

• Hanford Site, Richland, WA
• Idaho National Laboratory, Idaho Falls, ID
• Nevada National Security Site, Nye County, NV
• Savannah River Site, Aiken, SC
• Waste Isolation Pilot Plant, Carlsbad, NM

Reach out to Faith Sanchez, ECA Program Manager (faiths@energyca.org) with any questions. 

HANFORD WASTE TREATMENT PLANT COSTS - IG Questions Consts Bechtel National, Incs.'s Proposal Estimates for Baseline Change Proposal 02 And Its Contract Modification 384 Counterpart For The Waste Treatment and Immobilization Plant (DOE-OIG-23-34)

DOE- Office of Inspector General | 09/28/2023

After initial issuance of this report on September 28, 2023, the Department requested the opportunity to provide revised Management Comments that conformed to DOE Order 224.3A, Audit Coordination, Resolution, and Follow-up. Those revised comments dated October 5, 2023, are attached to this report.

In February 2014, the Department of Energy, Office of River Protection requested Bechtel National, Inc. (Bechtel) prepare a cost proposal for designing modifications to the Waste Treatment and Immobilization Plant to enable a direct feed to the Low-Activity Waste Facility and completing and commissioning the Low-Activity Waste Facility, Balance of Facilities, and Analytical Laboratory by December 31, 2021.

The Office of River Protection received Bechtel’s proposal in September 2014.  We initiated this audit to determine whether Bechtel utilized reasonable cost proposal estimates for baseline change proposal 02 and its contract modification 384 counterpart.

We found that Bechtel did not utilize reasonable cost proposal estimates for baseline change proposal 02 and its contract modification 384 counterpart at the Waste Treatment and Immobilization Plant.  First, Bechtel did not always use adequate estimating practices.  Second, Bechtel was unable to reconcile management reserve amounts to identified risks and demonstrate how estimates reconciled to the Risk Management Plan.  Finally, Bechtel’s use of its Monte Carlo simulation was not consistent with industry practice, which resulted in overstated hours and costs.

We attributed these issues to inadequacies in Bechtel’s estimating system and Department oversight.  We identified several weaknesses related to Bechtel’s labor hour estimates.  The labor hour estimates account for approximately $1.8 billion of the total proposed $4.5 billion.

These issues resulted in estimates that were likely unreasonable, could not be adequately supported, and potentially benefited Bechtel improperly and disadvantaged the taxpayer.  In addition, the issues identified indicate an inadequate estimating system could impact every future estimate Bechtel makes on this project.  We identified over 1 million direct labor hours added through Bechtel’s questionable application of Monte Carlo.

To address the issues identified in this report, we have made eight recommendations that, if fully implemented, should help ensure that the Department receives cost proposal estimates that are based on reasonable estimates.

Read full report here. 

UPCOMING EVENTS

Adding Nuclear to the Mix: NEI, EPRI, NETL, WVU, AND GAIN

This event serves as a platform to bring together diverse stakeholders including local communities, policymakers, utility companies, and energy innovators to delve into the dynamic landscape of enhancing energy portfolios. Attendees will gain valuable insights into the evolving energy industry, focusing on the integration of innovative value-added energy solutions. By participating, you'll have the opportunity to learn about the current developments and opportunities in the nuclear and sustainable energy generation space. Whether you're seeking to better understand the future of energy, explore ways to support local economies, or foster resilient energy practices, this conference offers a unique chance to connect, learn, and contribute to the ongoing transformation of our energy systems.

The conference registration is live: https://gain.inl.gov/SitePages/2023.11.1415_AddingNuclearToTheMix.aspx

Check out ECA's latest report! 

DISPOSAL DRIVES CLEANUP: RE-ENERGIZING MOMENTUM FOR DISPOSAL SOLUTIONS FOR RADIOACTIVE WASTE

This report calls on the Department of Energy to launch the initiative to develop the actual waste disposition approaches. The Department could potentially save hundreds of billions of dollars in cleanup costs by using its available tools and implementing the report’s recommendations.

NEW MEDIA

NucleCast: Admiral Hyman Rickover: Establishment of the U.S. Navy's Nuclear Submarine Program

Marc Wortman, PhD, is an independent historian and freelance journalist. He is the author of four books on American military and social history, most recently Admiral Hyman Rickover: Engineer of Power (Yale University Press, 2022), which was named a National Review Book of the Year and received an honorable mention for the John Lyman Award in biography from the North American Society for Oceanic History. His other books are 1941: Fighting the Shadow War, A Divided America in a World at War (Atlantic Monthly, 2016); The Bonfire: The Siege and Burning of Atlanta (PublicAffairs, 2009), and The Millionaires’ Unit: The Aristocratic Flyboys Who Fought the Great War and Invented American Air Power (PublicAffairs, 2006). A multi-prize-winning feature-length documentary based on The Millionaires’ Unit is available on streaming services.