When Recycling Isn't: Lessons from a Nuclear Industry Conference
I learned many things at the Nuclear Energy Institute's (NEI's) annual meeting, but perhaps none more surprising than this: When nuclear power executives discuss the state of their industry, they highlight many of the same issues as their environmentalist opponents.
Of course, the emphasis and even the language are different. But presenters at the "Nuclear Energy Assembly," held in Chicago from May 5 to 7, discussed financing for new nuclear plants, nuclear waste storage and nuclear weapons proliferation concerns.
Nuclear power opponents argue that the industry shouldn't expect or need government support, some fifty years into its existence. In a hotel conference room populated mostly with gray-suited older white men, industry executives repeatedly called for an expansion of federal loan guarantees for new nuclear plants.
Early on in the conference, NEI president and CEO Frank L. "Skip" Bowman said, "We use loan guarantees in this country to support ship building, steel making, student loans, rural electrification, affordable housing, construction of critical transportation infrastructure, and for many other purposes. Please don't tell me that America's electric infrastructure is any less important." He added, "I wish someone would tell me when the word 'subsidy' became a slur, a four-letter word. ... What is there of value in American life that is not subsidized, to some extent?"
Nuclear power opponents argue that the radioactive waste generated raises serious environmental, health and safety issues, and the United States still hasn't figured out how to handle the waste from existing plants. At the NEI meeting, there was no "waste," only "spent fuel." And the answer to the storage issue is "recycling" -- not reprocessing -- spent fuel to obtain material that can again be used to fuel reactors.
"You still have a challenge of what to do with used fuel," admitted Craig T. Smith, a principal at the polling firm Penn, Schoen & Berland. "Recycling is a message that resonates with people. ... From a messaging perspective, it resonates with audiences that don't necessarily support, or are somewhat agnostic, with nuclear power."
Furthering the CASE
For me, Smith's talk was easily the highlight of the conference. His firm (which was co-founded by Hillary Clinton's campaign pollster, Mark Penn) has worked for nuclear industry for "several years," to "shape the image of nuclear power in the public policy marketplace," as Smith described it.
"Many of you may have heard of our firm because of the political work we do -- Bill Clinton, Tony Blair, [Silvio] Berlusconi, Michael Bloomberg," Smith explained at the beginning of his presentation. "But actually, 80 percent of the work we do is for corporations, and help position them ... not their products, but their image, their ideas, and what they're trying to do."
For the nuclear industry, much of that positioning has been accomplished via the "Clean and Safe Energy Coalition," or CASEnergy. That's the NEI-funded front group chaired by Greenpeace activist turned industry consultant Patrick Moore and former U.S. Environmental Protection Agency chair turned industry consultant Christine Todd Whitman. As the Center for Media and Democracy has reported, journalists are all too willing to accept Moore's and Whitman's self-description as environmentalists who just happen to support nuclear power, without asking or disclosing to news audiences who signs their paychecks.
While Hill & Knowlton handles the PR work for NEI / CASEnergy, the polling is done by Penn, Schoen & Berland. "Part of what I do is I work with an organization called CASEnergy," Smith said. "What we have done at CASEnergy is we've gone out and recruited opinion leaders around the country, who are supportive of nuclear power and ready to talk to people about that, to write letters to the editor. ... CASE goes to [nuclear plant] relicensing hearings, and ... provides a presence there. We have materials that we get out. We've done a lot of work in Illinois and Michigan and Florida and Iowa and New Hampshire, and we're going to be working in some additional states as we try to raise the public profile of nuclear power."
Smith patted himself and NEI / CASEnergy on the back, for successfully "positioning" nuclear power as an energy source that doesn't significantly contribute to greenhouse gas emissions. Future CASEnergy talking points will focus on the benefits of used fuel "recycling" and the jobs created by building new nuclear power plants, he said.
Another Patrick Moore?
Craig Smith identified various groups who "need some additional convincing" about the benefits of nuclear power. These include women, people of color, young people, health care providers, environmentalists, people who live in cities and those who live in the Midwest.
Not surprisingly, these are the groups that CASEnergy is now focusing on winning over. While he didn't speak at the conference, Patrick Moore was in Chicago during the event, meeting with the editorial board of the respected African-American newspaper the Chicago Defender.
The speaker following Smith, Gwyneth Cravens, meets some of the nuclear industry's desired outreach demographics. She identifies as an environmentalist and former opponent of nuclear power, a mother, an organic gardener and a yoga enthusiast. She credits an acquaintance who worked on nuclear risk assessment issues with her gradual conversion into a supporter of nuclear energy, a process detailed in her book "Power to Save the World: The Truth About Nuclear Energy."
Is Cravens following in Patrick Moore's and Christie Whitman's footsteps? Only time will tell. If that's the plan, Cravens needs a little more PR coaching. Her stated commitment to environmentalism and her exhortations to avoid an "us versus them" mentality rang a little hollow, when -- during the same speech -- she referred to environmentalists as "anti's" and "tree huggers."
Much of the rhetoric at the NEI conference was similar; it sounded good, until you listened more closely. To the industry executives gathered, issues like nuclear waste and the considerable price tag of and lack of private investment in new plants are challenges, not to be overcome so much as "repositioned" with poll-driven spin and managed via state and federal lobbying campaigns. This approach has been disturbingly successful to date. With not just our energy policy but also our environmental well-being on the line, hopefully legislators and journalists will start listening more closely and asking more questions.
Diane Farsetta is the Center for Media and Democracy's senior researcher.
Comments
Nuclear Subsidies
Renewable energy advocates beware -- the nuclear industry is poised to shove its way to the front of the line, and eat your lunch! The industry and its new mouthpiece John McCain are asking for hundreds of billions in Federal loan guarantees and other subsidies.
Nuclear power is so costly its advocates admit no nuclear power plants can be built without Federal backing. Contrast this to a robust renewable energy industry backed by billions in private venture capital, with no Federal guarantees.
McCain got it right calling for a free market based "Cap and Trade" plan for carbon emissions. If you cap the carbon emissions from utilities, the utilities will find the most cost-effective means to meet the mandate. If nuclear power can prove it is competitive with other options such as conservation, wind, and solar, then it may get some of those contracts.
The nuclear industry is not content to compete on a level playing field, however. The proposed subsidies for nuclear would exceed Federal help to all other energy sources combined.
Sounds like Energy Pork all over again. Round One was the corn ethanol lobby. Now we have Round Two -- the nuclear lobby.
Lets cut the pork and let the economy decide the best way to meet the emissions caps, with everybody competing on a level basis.
See my detailed article at The Public Record at:
http://www.pubrecord.org/index.php?view=article&catid=8%3Acommentary&id=149%3Anuclear-not-only-way-to-generate-a-kwh-&option=com_content&Itemid=11
Craig Severance, CPA, is co-author of "The Economics of Nuclear and Coal Power" (Praeger, 1976)
Nuclear fission obstacles erected by fossil competition
I have some mixed emotions on the issue of subsidies for any energy industry. As a libertarian leaning individual who has been working for a decade and a half to get a nuclear energy company off of the ground, I would love to play on a level playing field where there were NO subsidies, mandates or special fees. Unfortunately, the energy business is one with plenty of vested interests who have been playing the political game for a very long time. They have successfully erected many barriers to fair competition.
It is grimly amusing to me that the officially sanctioned "renewable" energy industry includes such dirty technologies as waste-to-energy incinerators and paper company wood chip boilers. It is also amazing that the government provides "renewable" energy subsidies to such companies as GE (the largest US manufacturer of wind turbines), BP (one of the world's largest solar panel producers), and the infamous ADM (one of the world's largest agribusinesses).
What many people do not understand about the challenges that nuclear power project developers face in terms of obtaining private financing is that VCs and investment bankers are discouraged by the very long and unpredictable lead times (4-7 years for a license approval) and the need to pay large and uncontrollable fees to the Nuclear Regulatory Commission for license applications and reviews.
The NRC is required by law - courtesy of the Reagan Administration - to collect essentially all of its costs from fees on the industry that it regulates. The current fee structure for new license applications includes a $250,000 initial fee and an hourly charge of $258 per hour for every billable staff hour. Imagine daily or weekly review meetings with 10-20 NRC employees around the table for a couple of hours. The cost estimate for a single license is currently between $60 and $120 million with no firm rules on what is acceptable and what is not. That is a range that is difficult to stomach for an investor who would like just a bit more certainty.
Since my company's technology is a bit different from what the US regulators are used to seeing, we have the added challenge of paying fees to the US Government to teach their employees how to understand the differences between our gas cooled reactors (proven and tested in Germany and China and under development in South Africa) and the water cooled reactors that have been the primary power producers in the US nuclear industry. We expect that our fees will fall to the high end of the range and our review schedule would probably be more like 7-10 years under current rules.
In contrast, there is NO federal license review for a coal or natural gas fired power plant.
I know that the vast uncertainty in cost and schedule for initial start-up are THE issues for our potential investors. I have made the presentations to enough different groups to realize that they are the currently difficult-to-answer parts of our business plan.
When potential investors have heard our plans for smaller, simpler plants, our plans for series production to enable quality and cost controls and our ability to produce power without any greenhouse gas emissions using a fuel that costs about 5% of the cost of oil, they get extremely interested. So far, however, we have not been able to overcome the acceptance barriers caused by regulatory financial uncertainty and cost hurdles that the establishment has erected to discourage the competition that innovators represent.
Therefore, if the NEI is successful in helping congressional leadership to recognize that nuclear power has a role to play in reducing our dependence on fossil fuels and our production of greenhouse gas emissions, we will gladly modify our presentations and spreadsheets to show the benefits of provisions like project loan guarantees and carbon taxes - which would be preferable to "cap and trade" provisions that reward long time polluters.
It is time to add some additional points of view to the nuclear energy debate. The people who support nuclear fission as a fossil fuel combustion competitor are not all from big companies. We are not the bogeyman; we do not want to despoil the earth for private gain; we are not trying to sell a failed technology.
Please think about the people and organizations that benefit by discouraging nuclear power plants that have proven that they can reduce the need to burn coal, oil and natural gas in electrical power plants and oil on board ships. If you think about the impact to fossil fuel profitability if there really is a viable alternative, you might recognize that accepting nuclear power is a progressive position that could make a huge difference in the world's general prosperity and fair distribution of resources.
Rod Adams
Editor, Atomic Insights
Host, The Atomic Show Podcast
Founder, Adams Atomic Engines, Inc.
thanks
While I'm responding to other comments here, I wanted to thank you, Rod, for adding your perspective. No one is trying to make bogeymen out of anyone, and I agree that the way in which federal energy subsidies (like farm subsidies) are allocated is often illogical.
I also agree that there are problems with continuing to rely on coal and natural gas for electricity. And I understand that potential investors in nuclear power are scared off by the long and uncertain lead times for new plants -- as well as the industry's tendency (historically in the U.S. and currently around the world) to have nuclear plant construction projects go significantly over budget and over time. As we have [:node/7506|noted], the NRC has responded to such concerns by streamlining the new plant licensing process -- unfortunately in ways that reduce opportunities for public input.
At the same time, I think that nuclear power plants raise specific issues -- waste storage, safety and environmental, not to mention changing reactor designs and a current shortage of skilled labor experienced in building new plants -- that warrant a rigorous oversight process.