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4. Civilian Reactor Development Program - Operating costs for the reactor development program are estimated at $320.8 million in 1974, compared with 1973 estimated costs of $293.1 million and 1972 actual costs of $260.4 million. In a June 4, 1971 message to Congress, the President outlined a broad range of actions to assure an adequate supply of clean energy for the years ahead. ΤΟ facilitate research and development for clean energy the President included a commitment to complete the successful demonstration of a liquid metal fast breeder reactor (LMFBR) by 1980. The President's message stated:

"Our best hope today for meeting the Nation's growing demand for economical clean energy lies with the fast breeder reactor. Because of its highly efficient use of nuclear fuel, the breeder reactor could extend the life of our natural uranium fuel supply from decades to centuries, with far less impact on the environment than the power plants which are operating today."

The development program on Liquid Metal Cooled Fast Breeder Reactors (LMF BR) will be increasingly oriented to the engineering requirements necessary to achieve reliable, safe and economic breeder power plants including an LMF BR demonstration plant in the 350-400 MWe range. A memorandum of understanding setting forth the basic arrangements for a demonstration plant project was executed by AEC with the Commonwealth Edison Co. of Chicago, the Tennessee Valley Authority (TVA) and two new, not-for-profit corporations have been established for coordinated participation in the project by the nation's public and private utilities. This memorandum was submitted to the Joint Committee on Atomic Energy. Negotiations are underway. The plant is to be located on a TVA site on the Clinch River near Oak Ridge, Tennessee. Westinghouse has been selected as the lead reactor manufacturer and Burns & Roe has been selected as the architect-engineer for the plant.

The estimates provide for research and development in reactor technology, and in nuclear safety with added emphasis directed toward light water reactor safety and breeder reactor safety. The division of Naval Reactors plans to conclude its use of the Engineering Test Reactor (ETR) at the National Reactor Testing Station in Idaho by the end of April 1973; however, modifications are under way to continue use of the ETR for the breeder reactor safety program by installing a fuel element failure propagation test loop.

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Applied Energy Technology Program Operating costs for the Applied Energy Technology Program are estimated at $ 8.0 million in 1974 compared with estimated costs of $14.2 million in 1973 and actual costs of $12.6 million in 1972.

In 1974, the General Energy Development subprogram will continue research and development on energy transmission and storage technologies. These efforts are directed toward the transmission of electricity through underground cables utilizing superconducting materials, and the storage of off-peak generated electricity in lithium/sulfur secondary batteries.

The Isotopes Development Technology activities will be limited to the development of a prototype radioisotope-powered artificial heart system. All other activities in the development of isotope production and applications technology are being phased out in FY 1973.

The applications of underground explosions subprogram will be limited to laboratory development efforts, along with cooperative studies with industry on application of the technology to areas such as gas stimulation and copper leaching.

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6. Space Nuclear Systems Program Operating costs for the Space Nuclear Systems Program are estimated at $26.1 million in 1974, compared with 1973 estimated costs of $38.1 million, and 1972 actual costs of $41.8 million. In 1974, the program includes only the Space Electric Power Development effort which is developing the technology and the nuclear radioisotope sources to provide electrical power for operating spacecraft instrumentation during space missions. The nuclear rocket propulsion program and the space electric power reactor development program will be terminated in 1973.

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7. Physical Research Program Operating costs for the Physical Research Program are estimated at $250.0 million in 1974, as compared with $240.8 million in 1973 and actual costs of $233.8 million in 1972. This program provides support for both theoretical and experimental basic research in the physical sciences. Investigations are conducted at the boundaries of scientific knowledge in order to develop an understanding of the properties and behavior of both matter and energy. The basic foundation for advances in the development, use and control of atomic energy is developed through research in the fields of physics, mathematics, chemistry, and metallurgy and materials. Within high energy physics the 200 Bev accelerator will receive increased funding to support the first full year of operation of this new research machine. Support for all other high energy physics accelerators will be reduced. The Commission serves as executive agent for the nation's high energy physics research. estimates for this program are $25,000 for the Fermi award and $25,000 for the Ernest 0. Lawrence awards.

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8. Controlled Thermonuclear Research Program Operating costs for the Controlled Thermonuclear Research Program are estimated at $44.5 million in 1974, as compared wi th $37.0 million in 1973, and actual costs of $31.0 million in 1972. While the ultimate objective of this program is the development of practical fusion reactors for the production of electrical and thermal energy, the current emphasis is on understanding of the plasma state, preparations for new experimental programs aimed at demonstrating the scientific feasibility of fusion, and development of the necessary supporting technology. Controlled fusion power, if feasible, would be one of the very few options available to meet the projected exponential rise in power demands. Fusion reactors would offer the following significant advantages: plentiful and inexpensive fuel, inherent safety against nuclear runaway, and minimal environmental impact.

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9. Biomedical and Environmental Research Program Operating costs for the Biomedical and Environmental Research Program are estimated at $98.7 million for 1974, compared with estimated costs of $93.1 million in 1973 and actual costs of $88.5 million in 1972. This program will continue to generate information required by the AEC in both its operations and regulatory functions to assure the safety of man and the preservation of his environment. Health studies will be conducted which evaluate the adverse effects of radiation on man and to explore new uses of radioisotopes and radiation in early detection and treatment of disease. Environmental studies will continue to determine more information about the distribution, transport and fate of radionuclides in the environment. Biological studies are necessary to obtain fundamental information necessary for quantitative assessment of the effects of radiation on living organisms. Finally, techniques and analyses will be conducted toward the development of advanced technology in support of the health, environmental and biological research studies. The major portion of the total program effort is either directly or indirectly related to environmental research and development activities. In 1974 environmental R&D accounts for $71.2 million of the program request. This compares with an estimate of $66.4 million in 1973 and actual costs of $62.6

million in 1972.

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Operating costs for the regulation activities estimated at $54.5 million in 1974, compared with Regulation Activities estimated costs of $39.3 million in 1973 and actual costs of $26.8 million in 1972. Estimates for this program cover the salary and other expenses of Commission personnel engaged in the discharge of regulatory functions including development of policies, standards and procedures; administering licenses and regulations applicable to licensees; compliance and safeguards inspections for licensees; cooperation with states in regulatory activities; and advisory, review and appeal boards and panels. 11. Program Support Operating costs for program support are estimated at $151.2 million in 1974, compared with estimated costs of $148.0 million and 1972 actual costs of $143.8 million. The 1974 estimates include $127.5 million for Operational Program Direction. This estimate provides for an end-strength of 4,849 employees, an increase of 21 positions over 1973. under this program for 1974 are (1) $5.6 million for assistance payments to the former communities of Oak Ridge, Tennessee, and Los Alamos, New Mexico, in accordance with the Atomic Energy Community Act of 1955, as amended; (2) $7.0 million for security investigations of persons to be employed on work involving access to restricted data, under the provisions of the Atomic Energy Act, as amended, performed by the Federal Bureau of Investigation and the Civil Service Commission; (3) $6.4 million for information services activities including provision for the dissemination of complex technical information to the scientific and technical community through specialized reference tools and to the public through exhibits, films and other media; expansion of AEC information data base reflecting AEC's increased statutory responsibility to develop more efficient methods to meet the nation's energy needs and preserve the environment; expansion of computerized systems needed to process, retrieve and communicate technical information effectively and (4) $4.7 million for training and education in nuclear technology. Efforts include administration of cooperative programs between universities and laboratories primarily for education of graduate and undergraduate students at AEC sites, and operation of the Puerto Rico Nuclear Center.

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Cost of Work for Others Program Cost of work for others is estimated to be $7.8 million in 1974, compared with 1973 estimated costs of $21.0 million and actual costs of $17.9 million in 1972. This program includes costs incurred by the Commission in furnishing materials and services to industrial organizations and other private parties apart from those which it provides normally for its own basic program. The costs are incurred only upon the request of others. Charges are made for these materials and services and the revenues derived are included under "Revenues Applied".

13. Increase or Decrease in Selected Resources This program covers change in inventory stock held by AEC and its contractors, other deposits, and goods and services on order under contract. The appropriation requirements for these items are based on the changes in balances from the previous fiscal year. Balances at the end of 1974 are estimated at $1,053.7 million, as compared with $931.6 million at the end of 1973 or an increase of $122.1 million in 1974. Balances at the end of 1972 were $813.0 million. 14. Revenues Applied This program includes income from sale and lease of products and from services rendered and other miscellaneous income items. These revenues are applied against Atomic Energy Commission appropriation requirements. Revenues are estimated at $692.0 million for 1974, compared with an estimate of $490.4 million for 1973 and actual revenues in 1972 of $259.5 million. The 1974 estimate includes an amount of $580.0 million related to the charges for separative work in providing uranium enrichment services to the private sector pursuant to Sec. 161v of the Atomic Energy Act of 1954, as amended. The $580.0 million estimate includes an amount of $160.0 million in estimated prepayments related to a proposed revision in contract provisions. Income from license fees in 1974 are estimated at $32.1 million.

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The proposed change in language is indicated as follows: language enclosed in brackets indicates proposed deletion; indicates proposed insertion. language underscored

1. "$2,138,800,0007 $1,754,750,000 and any moneys (except sums received from disposal of property under the Atomic Energy Community Act of 1955, as amended (42 U. S. C. 2301)) received by the Commission, notwithstanding the provisions of section 3617 of the Revised Statutes (31 U.S.C. 484), to remain available until expended: "

This change reflects the FY 1974 appropriation amount.

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The proposed changes in the language for the administrative provisions are described below. indicates proposed deletions.

Language enclosed in brackets

No part of any appropriation herein shall be used to confer a fellowship on any person who advocates or who is a
1. "Sec. 102.
member of an organization or party that advocates the overthrow of the Government of the United States by force or violence or
with respect to whom the Commission finds, upon investigation and report by the Civil Service Commission on the character,
associations, and loyalty of whom, that reasonable grounds exist for belief that such person is disloyal to the Government of the
Provided, That any person who advocates or who is a member of an organization or party that advocates, the over-
throw of the Government of the United States by force or violence and accepts employment or a fellowship the salary, wages,
United States:
stipend, grant, or expenses for which are paid from any appropriation contained herein shall be guilty of a felony, and, upon
conviction, shall be fined not more than $1,000 or imprisoned for not more than one year, or both: Provided further, That the
above penal clause shall be in addition to, and not in substitution for, any other provisions of existing law."

This change is recommended since the fellowship restrictions contained in the language proposed for deletion are no longer considered necessary.

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