the station. The office area will be used for processing personnel to and from the generating station and perform several clerical operations of the station. There will be ample parking space for the operating personnel of the plant and personnel assigned to maintain and operate the shore support facility.

At this shore support facility there will be no storage, handling or transporting of nuclear fuel to or from the generating station. Shipment of nuclear fuel will be from an appropriate harbor or port.

3. Since the FNP can be located closer to major load centers than landbased plants of similar size, less land is needed for transmission cables from plants to distribution networks.

Transmission lines to shore are buried in the ocean bottom, thus there is only minimal and temporary bottom disturbance.

D. Water Use

All discharges from the Floating Nuclear Plant will be in accordance with State and Federal water quality regulations to insure that no alterations in previous uses of the water will occur.

E. Aesthetics

The offshore installation, when viewed from three miles, appears to be something like a large ship. The plant has a low silhouette and special attention is paid to the external appearance of the plant. Due to the minimum amount of land-based facilities required to support the offshore installation, the visual and aesthetic impact on land can be kept very small. The supporting shore structures and facilities can be low structures designed to biend attractively with the background and any existing buildings.

V. SAFETY OF FLOATING NUCLEAR PLANTS

Historical, analytical and empirical data are used to determine what environmental phenomena are to be considered and the magnitude of each. The phenomena considered in plant and breakwater design include: hurricane, tsunami, earthquake, tornado, thunderstorm, wave motion, etc.

The plant design bases are selected conservatively so that the plant and the breakwater design have a broad margin of safety.

The breakwater is deisnged to protect the FNP from the maximum storm waves that can be expected at the site and the largest ship that can operate or drift in the plant vicinity.

The plant is designed so it can be safetly shut down in a one-in-one-million year storm, in hurricane winds of 180 mph, tornadoes with 300 mph rotational and 60 mph translational velocities, and in an earthquake with horizontal ground accelerations up to 0.3 g, and vertical accelerations of 0.2 g. It can be safely shut down with a tidal variation of +20 feet or -6 feet from mean low water level.

Nuclear safety is otherwise similar to land-based plants. All systems important to safety are designed, fabricated, assembled, tested and have performance characteristics meeting all applicable Atomic Energy Commission regulations, specifically the AEC's 64 General Design Criteria. Quality assurance procedures are in accordance with 10CFR50 Appendix B. The proven safety systems and structures are comparable in design, reduncancy and capacity to those of land-based plants.

VI. STANDARDIZATION

In the past, little progress was possible toward the AEC goal of standardization in nuclear power plant design. Specific needs and siting conditions have varied widely, forcing costly custom engineering. The Floating Nuclear Plant, assembly-line produced and identical from site to site, presents the first opportunity to achieve total plant standardization with all its inherent advantages. The standardized design and manufacture of the FNP make possible reduced licensing reviews, reduced costs and time, and improved quality assurance.

Offshore Power Systems will build eight identical plants in the Jacksonville Manufacturing Facility. The concept of standardization underlies the layout of this facility and allows assembly-line manufacturing, much of it under con trolled factory conditions.

The ability to manufacture the plant (when compared with constructing it in the field) has several inherent advantages previously unavailable. Manufacture of the plants on a production line basis in a new facility using the same labor force results in a higher intrinsic level of quality in the plants. The quality assurance organization for the plant is centralized in the manufacturing facility. Manufacture of the first FNP will take fifty months but by the time the eighth plant is completed, projected improvements in labor efficiency and refinements in production techniques due to the standardized design will have reduced total manufacturing time to only twenty-six months.

Other factors in addition to quicker assembly contribute to a shorter lead time. Because the plant floats, is standardized, and is manufactured away from the the ultimate site, the concept lends itself to separate and concurrent licensing for the plant and site. The AEC has publicly endorsed standardization of nuclear plants and nuclear plant components as a means of eliminating costly and time-consuming individual reviews for each plant, therefore, considerably reducing plant lead times. The AEC will publish new regulations specifically tailored for factory production of standardized plants. Instead of the utility submitting the customary Preliminary Safety Analysis Report for the plant and site as part of its application for a Construction Permit, the manufacturer will apply for a generic Plant Manufacturing License for a series of identical plants by submitting one Plant Design Report. The Offshore Power Systems plant Design Report has been completed and the application for a Plant Manufacturing License for eight plants was filed with the AEC on January 23, 1973. It is expected that a Manufacturing License will be issued about March 1975 in advance of the start of manufacturing operations on the first of the platform structure components.

Using a standard floating nuclear plant, a number of potentially suitable utility sites can be evaluated independently of the plant construction schedule. This results in increased flexibility in the utility's site selection and development schedule. Site delays need not delay plant construction schedules.

Savings in time means savings in cost. Shorter payment schedules will result which will significantly reduce the cost of interest during construction and escalation of increased labor and material costs. These savings in cost will allow the utility to pass on the savings to the consumer in the form of lower electricity rates.

VII. HUMAN RESOURCES

The demands for construction craft labor throughout the United States will soon exceed the availability. This unbalance will seriously affect the nation's ability to construct the necessary electric generating capacity required in the decades immediately ahead unless measures are taken to alleviate it or a completely new approach to power plant construction is inaugurated.

We believe that Offshore Power Systems has that new approach. It is one in which optimum utilization of the available labor force is made under controlled conditions of productivity. In addition, it involves a training program to increase the number of skilled craft workers in the labor force. Without such optimum use of human resources, it will be impossible to provide the additional generating plants of the future.

Offshore Power Systems will ultimately need over 14,000 employees to manufacture four floating nuclear plants per year. The vast majority of these employees will be shop personnel involved in production. Where will this large labor force having all of the necessary building skills be recruited?

The City of Jacksonville with its population of 529,000 in 1970 has one of the lowest unemployment rates in the United States-it averages about 5,000 persons at any given time. But Jacksonville has one of the highest under-employment rates in the nation-estimates place it at 60,000 people. Under-em

ployed persons are those whose potential skills are not being fully utilized by the jobs they presently hold. They are underemployed because first, they have not received the necessary training to enable them to perform the skills which they are potentially capable of performing and second, because heretofore there have been essentially no job openings at levels higher than the jobs they are holding.

Offshore Power Systems can provide the job openings but a special training program is clearly necessary if Offshore Power Systems is to have a satisfactory work force. The City of Jacksonville has seen the wisdom of such an effort and has already initiated a plan of action.

The first step was to determine how much of the required training the Jacksonville community would be willing and able to perform and how much should be performed by Offshore Power Systems. In initial discussions with local leaders there was general acceptance that basic skill training should be performed by the local school system, the Florida Junior College and the Federal programs, and that Offshore Power Systems should have the responsibility for the training necessary to turn these basic trainees into functional employees. The next problem was to locate a funding vehicle whereby Jacksonville would be able to obtain money for a training program. This vehicle was found in a dormant piece of legislation that created the Jacksonville Vocational Education Authority. The Authority can become the conduit through which state, federal and private funds are channeled into the local education program as facilities and/or equipment. Jacksonville has taken the necessary steps to resurrect this Authority and is presently mounting a campaign to request a special appropiration of $5 million from the State Legislature to be used in a pilot program. Concurrently Offshore Power Systems is working with the school system and junior college in the preparation of curricula that we jointly feel will turn out a good basic trainee-one who with a little additional training from Offshore Power Systems can become a functional employee.

This year we will begin a recruiting campaign which will be designed to direct those members of the underemployed who desire to improve their situation into courses that will be offered at the Florida Junior College, Adult Vocational Schools and Federal programs to prepare themselves ultimately for employment. Concurrently the high schools will begin their training programs. Specific courses will be offered beginning September, 1973. These courses will all have input from Offshore Power Systems and will be specifically designed to ready this work force within a two-year time span for the adult programs and three years for the high school students. Offshore Power Systems then needs only to begin designing its in-house training programs to receive and polish these trainees into functional employees.

VIII. ECONOMIC IMPACT OF THE FNP

A comparison of actual land-based nuclear plant construction costs projected to early 1980's operation and total FNP project costs indicate that the FNP is more economic. The total cost of the FNP concept for 1981 operation is estimated to range from $420/KW to $480/KW. Reasonable projections of today's actual costs reflect that the land-based plant costs against which the FNP is competing will be in the low to mid $500/KW range during the early 1980's. The labor productivity that Offshore Power Systems expects to experience on the first Floating Nuclear Plant manufactured in Jacksonville is comparable to the productivity a utility would experience in constructing any land-based plant in a high productivity area. However, Offshore Power Systems has reflected in its average pricing a 50 increase in productivity (or decrease in manhours/KW) between the first Floating Nuclear Plant and the eighth Floating Nuclear Plant. This standard plant manufacturing learning curve effect which is not available on a constructed land-based plant is based on actual Westinghouse and Newport News Shipbuilding shop manufacturing experience.

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In addition to the dollar saving to the utility, there is a considerable saving in manpower resources.

The fully distributed labor rate in a manufacturing facility is generally less than one-half that of field construction labor and, because of the diversity of manufacturing, this ratio will probably remain constant or increase. Jobs in a manufacturing facility are not seasonal and do not require the employee to travel long distances from home or live away from home for extended periods. The Floating Nuclear Plant is sold on a firm price subject to escalation based on government indices for labor and material whereas a land-based plant is generally bought under a time and material contract. The landbased plant estimated prices prepared by Architect Engineering firms and the utilities have historically been too low by a factor of two to three.

Based on projections of plant capital costs and nuclear fuel and fossil fuel costs, generating costs using the FNP will be about 7% less than comparable land-based nuclear plants; 9% less than coal-burning fossil plants; and 32% less than oil-burning fossil plants.

Each 1150 MW plant would require about 3.3 million tons of coal or 111⁄2 million barrels of oil if it were fossil-fueled rather than nuclear-fueled. Domestic production of oil could not support his increased demand so the oil would have to be imported, which would further increase the balance-of-payments deficit.

A. Introduction

IX. MANUFACTURING PLAN, CONCEPTS AND FACILITIES

A principal part of the Floating Nuclear Plant concept as developed by Offshore Power Systems is the manufacture of the complete plant on an assembly line basis in a new, specially designed shipyard-like facility. To assure that the plant manufacturing schedules can be met while improving overall plant quality, the manufacturing process will employ modern production planning, control and scheduling techniques as well as the latest in automated and mechanized shop processes and manufacturing equipment.

B. Manufacturing Plans

Offshore Power Systems has assembled an organization which has experience in both domestic and foreign shipyards, in nuclear power plant construction, and in the implementation of modern management systems and controls. This staff is actively engaged in functions which will assure a manufacturing plan and a facility to meet the objectives of producing a high quality product on time and within budget. The manufacture of Floating Nuclear Plants instead of their construction in the conventional sense results in decreased costs, improved quality control and on-schedule completion. These improvements result from:

1. Standardization.-Standardization of the product with a series of at least eight (8) nearly identical plants (making a good learning curve applicable), standardization of elements within the product resulting in quantity manufac ture, and standardization of the processes used in manufacture providing the opportunity for repetitive tasks.

2. Mechanization. A capital intense facility is planned using the latest technology available in the world applied to the standardized product, elements and processes. This type of facility will provide the basis for a high "value added" per manhour and the effective control of all operations.

3. Modular Assembly. This concept makes it possible to accomplish much of the detailed installation work in an efficient shop environment instead of onboard the plant. This not only improves efficiency and quality, but reduces the schedule time required for manufacture.

4. Systematic Control. The manufacturing concept, in a factory/shipyard environment, provides the basis for application of effective and proven control systems for cost, quality, schedule and material. These systems are now being developed from proven control functions and will be ready to begin their con trol responsibilities well ahead of actual manufacture.