activity is the UC development project for the irradiation of six capsules for evaluation of fuel elements containing hypostoichiometric uranium carbide sodium bonded to type 304 stainless steel cladding. The planned fiscal year 1964 program covers the extended irradiation of some of these capsules, associated irradiation unit and irradiation service charges, and waste disposal and scrap recovery requirements of the program.

(2) Fast reactor systems R. & D.

Fiscal year 1963 costs cover the completion of core B research and development, the start of irradiation testing and fabrication process development of core B fuel elements, and consulting and miscellaneous services.

In fiscal year 1964, further research and development will be conducted on this core; hot cell examination of irradiated U-10 Mo/Zr-2 fuel assemblies from core A will be performed; and consulting and miscellaneous services will be provided. An increase in the authorization from $3,600,000 to $4,309,000 is being requested in fiscal year 1964 for this project.

E. OTHER DEMONSTRATION PROJECTS, $9,202,000

The 86th Congress, by Public Law 86-457, dated May 13, 1960, authorized the use of "funds not to exceed $15 million in the aggregate, to provide research and development assistance in support of unsolicited proposals from the utility industry to construct nuclear powerplants." Public Law 87-315, dated September 26, 1961, authorized the use of an additional $7 million in the aggregate for the same purpose. Public Law 87-701, dated September 26, 1962, authorized an additional $3 million for carrying out the Commission's power reactor demonstration program in accordance with the terms and conditions provided in section 110 and 112 of Public Law 86-50.

Public Law 87-701 also states that "Funds authorized and appropriated to the Commission and authorized waivers of the Commission's use charges, available for the third round of the Commission's power reactor demonstration program, shall also be available to the Commission for use in a supplemental program of third-round cooperative arrangements in accordance with the criteria heretofore submitted to the Joint Committee on Atomic Energy and in accordance with the provisions of subsections 111 (b) and (f) of Public Law 85-162. Under any such arrangements the Commission may furnish funds for design assistance without regard to the provisions of section 169 of the Atomic Energy Act of 1954.” 3

Public Law 87-701 further states that "Funds authorized and appropriated to the Commission and authorized waivers of the Commission's use charges, available in support of unsolicited proposals from the utility industry to construct nuclear powerplants, shall also be available to the Commission for use in a cooperative arrangement with any person or persons for participation in a nuclear reactor project to generate electricity, process heat, or both. Any such arrangement shall be entered into in accordance with the criteria for the third round of the Commission's power reactor demonstration program, including the provisions of section 111(b) of Public Law 85-162: Provided, however, That under any such arrangement the Commission may furnish funds for design assistance without regard to the provisions of section 169 of the Atomic Energy Act of 1954."

The Commission has requested an additional authorization of $5 million for fiscal year 1964 for the same purposes as stated above.

The estimated costs for fiscal year 1963 and fiscal year 1964 would be incurred for the types of proposals authorized. The Commission has currently under negotiation three proposals for research and development or design assistance for large-size reactor plants; namely, Southern California Edison, city of Los Angeles, Calif., and Connecticut Yankee Atomic Power Co. It is expected that these three proposals will be finally negotiated in fiscal year 1963. In addition, the Commission plans to support two proposals in fiscal year 1964-possibly one for a large-size reactor plant and one for a small-to-medium-size reactor plant-under which research and development and design assistance could be provided.

The following tabulation portrays the prior year and planned funding pattern for the various reactors which comprise the cooperative power reactor demonstration program.