Department of Energy APR 23 1981 Honorable Richard L. Ottinger Conservation and Power Dear Mr. Chairman: Thank you for providing a copy of your alternative proposals for a FY 1982 Department of Energy budget. The following information is provided in response to inquiries made during hearings on the Nuclear Energy budget by the Sub" committee on Conservation and Power when specific information was requested by you concerning the impact of a 54 percent reduction in the Nuclear Energy budget in FY 1982. I find I am unable to support your alternative budget proposal after careful review of the consequences of such a major reduction. All of the Administration's initiatives aimed at reviving the nuclear energy industry and renewing confidence in the nuclear option would be eliminated. Specifically, our program to break the impasse at Three Mile Island and our light water reactor system initiatives would be eliminated except for certain safety activities; the Clinch River Breeder Reactor Project would be terminated jeopardizing the industrial base for breeders; the Water Cooled Breeder would be shut down without realizing the full potential of the unique U233 Thorium fuel system and without being able to conduct the end-of-life program, including the proof-of-breeding determination; the Advanced Isotope Separation Technology Program termination would eliminate our long-term program to remain competitive with foreign enrichment sources; the Congressionally mandated West Valley Demonstration project (P.L. 96-368) would be terminated and we would drastically reduce the activities legislated by the Uranium Mill Tailings Radiation Control Act of 1978 (P.L. 95-604); and finally, Commercial Waste Management activities to provide an early test and evaluation facility and support our proposal to the Nuclear Regulatory Commission confidence rule-making would be eliminated, jeopardizing future licensing of reactors. The enclosed table identifies the drastic reductions implied by your proposal. 2 While I know your proposal reflects a deep concern for our nation's economy as well as a desire to develop a balanced energy program, I am convinced that our budget proposal submitted to the Congress on March 10 in support of the President's Economic Recovery Program provides a better balance and much more focused program. I believe strong support of a viable nuclear energy alternative is vital to our program to decrease our reliance on foreign oil. We need to demonstrate to the Nuclear Energy industry as well as current and prospective nuclear energy power customers that we are committed to reviving this important energy alternative. I appreciate the opportunity to provide this additional information concerning your alternative energy and budget proposals and I would be pleased to provide any additional information you may require in support of the Department's budget request. Enclosures Sincerely, Wallon Bates Mahlon E. Gates Acting Assistant Secretary for Nuclear Energy |