ML19246A562

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Forwards CA Energy Commission Comments on Des. Discusses Only Need & Alternatives Sections,Since Proposed Plant Location Is Outside CA
ML19246A562
Person / Time
Site: Palo Verde  Arizona Public Service icon.png
Issue date: 06/26/1979
From: Urban M
State of CA, Energy Commission
To:
Office of Nuclear Reactor Regulation
References
NUDOCS 7907030369
Download: ML19246A562 (28)


Text

{{#Wiki_filter:= STATE OF CALIFORNI A-THE RESOURCES AGENCY EDMUND G. BROWN JR., Co ernor CALIFORNIA ENERGY COMMISSION . v. 1111 HOWE AVENUE SACRAMENTO. Calif 0RNIA 95825 Nb$ (916) 920-6257 June 26, 1979 Director, Division of Site Safety and Environmental Analysis Office of Nuclear Reactor Regulation U.S. Nuclear Regulatory Commission Washington, D.C. 20555

Dear Sir:

Attached is a copy of the California Energy Commission's Comments on the Nuclear Regulatory Commission Staf f Draft Environmental Statement (DES) on Palc Verde Nuclear Generating Station, Units 4 & 5. Since the facility is not proposed to be located in California, the comments cover only the need and alternatives sections (Chapters 8 and 9) of tne DES. The comments are also limited to the California participants in the proposed project. The comments are generally based upon recent utility submittals to the California Energy Commission and continuing Commission studies of future electricity demand and alternative available resources. The California Energy Commission staff would be pleased to provide documents or other assistance to the NRC staf f in their efforts to complete the final environmental statement. Sincerely yours, l MARK J. URBAN Deputy General Counsel cc: Applicants & Intervenors il OfL, ('O b G. \' \ 7 9 0 7 0 3 0 3 Ut - .

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CALIFORNI A ENERGY CD'OtISSON LO:"4ENT5 ON THE NUCLEAR REG"LATORi CO!O1IS3 ION STAFF DRAFT ENVIRCN'4 ENTAL STATEMENT n'!

                   ?ALO VERDE NUCLEAR PROJECT L'N I T S 4 e 5 hG (1 W                       .

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j.j ;07-) 1b '4 u k}u/t.,N The discussion of need for Palo Verde Nuclear Generating Station, Units 4& 5 ("Palo Verde 4 & 3") is generally adequate.

   "ost of the seventeen pages on this sr.bject in the draft er . :.ronmental statement (DES) sheds little light an wherre.

each of the California participants need the capaciti 2. - energy that Palo Verde 4 & 5 would generate in the prop;c timeframe. A much more extensive analysis on need is ner:ssary for a properly complete final envircemental impact s tateme r.t . A. Forecasts. The most glaring deficien:f in the DES a s s e s s r.en  : ..e energy and capacity needs of the participants is the failure to rely upon the California participants ' own rest recent demand forecasts. The e forecasts are signif;cantly lower than the "RC staff estimate contained in the CES. The Cal:.fornia parti-cipants have lowered their peak demanf forecas: for 1991 b; 1,000 negawatts, compared to estimates made in 1972. The; now forecast 1991 peak needs of 29,2 00 me 7 r.za tts , ahich :.3 an an ual peak demand growth of 3.31. Th  ::RC staff estimate, in contrast, is 3.5%. The DES concluded that the ':2??. f: recast, because it eas econometric and end use rather than 5: 2 orical, 72s most reason-able. Since the Energy Cormissian re _ ired a s i:-ilar me thc do lo,, n- - q- , ma =& - M ' ',.;.. . ~

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Two specific alternatives not e v e .- mentioned are repcworing of Silvergate for San Diego Gas and Electric and purchases of alectricity from Mexico. Repcwering Of Silvergate, which is _- technically and economically feasible, could add 299 megawatts to the SDG&E system. The Cal- f ornia :nergy Commission staf f F13 3f* estimates that at least 300 megawatts of electricity is available C5C',, - vi,' to California from the Republic of "exico through 1992. Negotia-

                                                                                   .h tions between Mexico officials and SC3;E are      currentlyunderway.Ci3-7 cTm The analysis of alternatives also fails to discuss the               GdD#

Enu M feasibility of using combinations of alternatives (including

                                                                                 /t f'l fLi:.

conservation) in place of Palo 'lerde 4 & 5. Except fcr coal, gt. fc.f@_; r;

                                                                                        ,.e the
               - .                                                               d45..c2 cS tails to assess the eccnomic and environmental costs                m, ve ,'~t cjh@

and benefits of alternatives. This crission contradicts NRC's perm own regulations recuiring 7. cost benefit analysis of environ-mental and other impacts of the propczed facility and alternatives. (10 CFR S 51.23(c).) The only alternative analyzed ir fepth is a generic coal-fired plant. Coal is dismissef as a able alternative primarily because of lack of available coal su;;_tes, and greater relative costs and health impacts compared to .uclear power. These ccnclusions are based upon a CES anal, sis that is deficient and biased towards nuclear power. The DES subs tantially overstates -Me problem in obtaining a coal supply for a coal-fired altern2:ive to Palo Verde 4 & 5, and may, at the same time, unde re s ti.m a n a the problems with uranium supplies. (See Muclear Fuci :- cle below. ) Federal policy, as stated in the President's ;rigir.al energy plan and set into law as the Po'lerplant and Industrial Tuel U3e Act,

                                                                              ,          a*.)

L_ W - c;i

encourages production and ase of coal in place of oil and gas. Thus, the federal government has made _: a priority to remove gg7t w any barriers to coal utilization. The IES ignores this polici s-. a,wt Even assuming uncertainties in obtaining additional coal SEZ?> T:N lue to fadaral leasing and surface mic._ng policies, a good deal Eq$. 3C

                                                                            -     ,e of coal is still available since 16 billion tons of coal are so., v t already under federal lease, and substantial amounts ar2 under               t C%p,0.m state leases or are privatelv Owned as ' fee coal."
                                -                           Much of this   f.&'le y,g.3 is mineable underground and is not significantly affected by              thy "c.#

r5,T&". the Surface Mining Act. Two major coa _ gasification projects n . . .y9 ( *, - z n.2 in New Mexico, sited on . Native A.meric..- land, h a'/ e recentiv Egg c:." re y failed to receive approval from the tr;ces to calid the conver- g sion facilities because of expected er.;ssions. These leases, which involve several hundred million rrns of coal (sufficient for Palo Verde 4 & 5) may be put or th2 matnet soon. Colorado as extensive strip and deep .ineable reserves. Half of all colorado coal land is pritatelf owned, and a substantial portion should be available even without resured federal leasing, and 2ven under strict surface mining restr;;tions. Similarly, there are several hundred million tons of uncommitted coal being offered for sale now in Centrel 'tah, all deep mined. Although coal from outside Arizona ;c__d oe more expensive for an Arizona coal plant because of trans7crtation costs, it may be that a coal-Zired alternative sited :;;::lle of Ariscna would reduce costs. The DES also overstates the uncer ainties due to federal leasing policies and the lurface 'anir- 3 r- For example, the statorent in the DZS that "leasira of ~ 2deral land which containa ar q

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                                   =
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coal has been suspended for ar indefinite period," is misleadir . Leasing has been essentially suspende. since 177'. . :lowe ve r , the Secretary of the Interior nas pr -. sed promul? ation of a .1ew program in 1979, which will star: 0 bi 1980. So far, the _:s 1 1 n a ,u Department la on schedule; it _scue . .a On its preferred leasing program in April, 13 7 ~) . Carrently, .ne Secre-tary . alans to lease coal in Jtah anc : alorado rm a a r l'2 as 1931-32, under a special start-up procedura. The fell leasing prograr,

.. i th further leasing in Se.; Mexico a.:. Arirona, could produce its first leases as early as 1983.                                                                          5;nce it takes one or two

.c c a rs to le"elo.o a mine once the leas es ( an,' c t?.e r ce r.itc) are .

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for a plant as early as 1983. Even if the leasina. crcc> ram is . delayed for several years, it is 112.r./ that coal frcm new

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ana F.eclama tio Act (of 1977'; :.s in"._ iting expansion of coal e-= 8 mining bv. creat.ig . ore uncertain'". about -ininc. reculations " %,=- e A,

. . .             .'     Although the regulations pr mulua:a- ;.cer the Act ar.gr.j%

.ge aub4ec

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1-tion for April and May of 1973 is - r e 2 te. r than the year before ccKI.]

                                                                                                                                                                                                      $52 g"1TT4

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o _. ._ m... c. o t,. t Of concludes that elecrricit; costs af - . le ; - plants are 5' to

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                                                                                                                             '}         MP

111 cheaper than ~ rom coal plants. (DES, p. 9-l?.i The three major dete minants of electricity costs are capital costs, capacity factors, and fuel costs. The analyses ir the :2 of t, e va c, *i * .'. _' v- o s '-o- ' ..d-

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inadequata in se*. e ral significant .tays.  ; \g- p,) Q. Power .Olant Capital cos ts ha'/e incrcased r a c. :. d l"2 o'/cr the C_ Q _ _.4 3 . . .

                                                                                                                                                                                     ~. u
                                                                                                                                                                                                   ,3' last cecaae, watr, .uclear units showing a rate of increase                                                                                                                        - -
                                                                                                                                                                     '. s a approximately tw:.:e that of similarly sized coal units.                                                                                                                       y L%

result, the capital costs for nuclear units now acming er line p' e.r -n.3

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                                                                                                                                                                                           ~ ;,l capital c:s ts o f ~ 14 83/'cre for Palo verfe 4 9 3 an ~. 312 : _                                                                         _                        %'. e    r; . ,m for the ccal alternati'/e.                                           '
                                                                         .stttached as Appenc..- A                                                    s a chart                 (. . . ..)     c. -

u: , comparing DES cost estimates with generic nuclear plant cost ( b.,

                                                                                                                                                                                                     ~!
                                                                                                                                                                                                    .]

t estimates of arch:.:ect-engineer construction firms. As shown _ $ J J -

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projectior in the DES is approximately 25 percent ' relow the

   $1905/hWe estimate obtained when the generic estimates                                                                                                     are ad]usted to Palo 'Jerd e's operation lates.                                                                       The          'c o n -               Oticr estimate, 512 2 6 /h':e , is onl                                           about 12 corcent below the figure of $1368                  :".en adjusted for operation dates.                                                          Thcs, the :II estimates, though apparently low for both coal an                                                                                              nuclear, appear to be significantly less accurate for the nuclear :ption.

It also accears that the cao. ital cos'c estimate of the DES are outdated and do nct adequately reflect the experience of the last few fears. ' more reasonable can. ital cost. f :. u re tc ;se

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m' '~ h e " RC st2ff assures an annual capacit" factor of 55'. for noth 8:%, , -. u, - , e a . , . , - .~

u. -u.e ave. age u.
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a' b e c .- '~'- .. . M. - . ' - ..~;..-  ; y; . ... ~s GM stud" 1 cf c al-fired power plants shows an average capacit" -

                                                                                                                                                                                                                                                         ..       ..\n factor for these                                                  . ants of around 671. M                                                                    N r the rro re , lar:e                                                                     t.1:CY
                                                                                                                                                                                                                                                      -e s:     .m. .

s , - units (1002 egawa::s and more) of an'x' nar ticu l a r t'/c. e tend to - D ~'" ' '

                                                                                                                                                                                                                                                       ,yw-A 2 3 perform mere poor 1.                                                      than mid-size units (500-800 megawatts, of                                                                                                                                   (;Z.' G1         n)
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3 Consicering s o 2 a a. the cerformance. . or. e:. ;s tin e~ nuc. car :n; s , the c. redicted perf:rrance of Palo Verrie 4 & 5  ! based on its u .4 ., e , . o, e. 4

e. - 9
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                                                                                         .-. v= ,      1  nO- g P. C .h. 4 &- e *= - .3 *".                  m. "**   ~ .4 .] g a         -- **         C Aw ' J'C *- *- *- *- *- ' -* -* -" .*- *- ~ "~* * "' - *

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caoacity factors for the coal alternative shouh

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.in .         *.he 60-55 e e--c....                  .-                     -'.,e.
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percent for a plant such as Pal: Verde 4 & 5 and in the low-to miu-60 percent range for ec2' units such as the generic

oal alternative here. Data wh ch have accumulated since that study have tended stron~1 9 to reinforca its T.a.,or conclu-C& .m r.,,..

sions. In 197?, Sargent and Lund"1, a laading arch . tect-enci- .11 - s. g-neering firm, began to use a flat 60 percent for both coal and g ;;g

                                                                                                                                                             % ^J nuclear units in its publ shed generic estimates.                                                                            Its most
                                                                                                                                                               , -. a J

recent generic estimates continue to ;se the 60 percent figure. T7C" tm...a < 3ence capacity factor assumptiens above 60 percent, like the Uf'- r."_ET2 rocc.arative can. ital cost assum:tions ; sed in .

                                                                                                              ~ ~ - '*             .'      RC                 (cv,Ch m

ra Tw13 staff and applicants, reflects 2ndue Opticism abc; nuclear plant agg3g 16QTa

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. . ___m __ . gg for Palo Verde 4 & 5 and one of 60-65 percent for the coal {22T73 alternative in the generic comparison is much . ore reasonable than the DES estimates of 65 percent. Because of the possibil.t; na - ~^,1

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reliability, the 60 cercent fi ure ma . . be used for larc_er units anc 03 percent :or sma,ler units. The comparison of en.irar ental ircacts is also unacceptabl. biased in several respects in favor of the nuclear alternative. Because of advances in techncl:gy and envirorr. ental regulaticns, coal clants simo.lv. will not hace mar; ri the adverse impacts associated with existing coal plants. Iba most significant adverse effect of the coal f ue l c". .:le : c ob :b le. .nvolve air emissions. However, because of the n e: rochisticated technology th a t should be used on a new ::11 pl: tnt, air emissions fror new

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f._.. _ f , i i plants. Fo r i.".s ta nce , alv2nC0i air e.~1sSiCC Centrol equipmen t'

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rurrently being used in *he Un;:ad Sta: M, such as baghouses 7.,p,- a nd s cr"%e rs , .4111 opera te to recove 4.3 rerce .t of a coal g( r: .

.+

lant's particulate omissions . dust ar fly v; - ) and 95 percent ;Jl A

                                                                                                                                                                                                        ) I af its ;ulfur oxide ( S O;.;) amissions.                                                                                   ~ c:. abi;e r ;

as. also CLIA y v*y

 ;ubs tant'. ally reduce hyd rocarian eniss ..,.ns wn i eb are a major
                                                                                                                                                                                                                 . ~

f .. ,& ,aracursor to the formation of ,rhotochenical scog. Selective ,,'W" hh,

;atalytic reduction could remoce up to M je rcu. t of oxides of                                                                                                                                       g fc;; n AL4      -%

utrogen (::Ox) . A coal plant :illair: theso t.:cP. ologies wilt dG m.m.v g t#

e cleaner than an comc. arably sized cil- fired -int new o". cratina. . u%. 9 .

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quality benefit in areas that are not attainment for arbient air 'uality s . standards. EPA ru'_ncs cr:.ide that no new power . -lant can be built if its constructior and operatica woula cause

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2.-'.b ie n t a i r c.ua ll t'.? Standard. Neverth21ess, e .c power plaits n a'1 ce built in areas that h a'. . =in a.b;2nt ai" quality standard

.iolation b', securing emission :ffsets 2: " L . a a e - o f f r. " .                                                                                                                '"hese aniasion of fcets are obtained b; reducing the allowable emissions
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.3ignificant De:erioration (P5;? Prcgr'- is designed to assure .k.... . . a,~,v,..c,.

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this program, cmissions frc= all new s urces cannot cause ambient concentrations of 30.. and narticulate matter in the designated areas to increase by ar amount in excess of a 3Ca-g.- deterioration increment which is spe cified b; feders' statute. , . " . 4-

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These increments of deterioration are sufficientl; small to n. C.' .. assure that there will be limited adverse air quality impacts V'~ in the designated areas cause" '" 1

                                                                                                            .. .e, w m' ar p new sources, such as power plants.                                                                                             K5 W M

E C.". 5~ 3ecause the emissions frcr any na./ coal plants would be g- j-{,. muen lower than emissions fror existing plants, a large part gzS:B t._..A o _c ..g _-.e_-n

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w. . e-er plants would probably not occur. s-F u r t n' e r = c r a , federal and g1C32 s tate ambient air quality standards establish a maximum safe 1mbient level for pollutants that have been shown to cause a public health probler. Further analy2;s is needed in the DES
f the health impacts for a ec21 alter.atize .:hi ch a ccura te l'.

accounts for: (a) health impacts fr; a facility sited in a remote, unpopulated area in Californi2: (b) health impacts fron a facility complying with Cle-" Air ..2: ';ew dource Review requirerents, including attai. ment of 1mbient air quality standards by 1992; and (c) hea_':h irc:::s fror a faciliti using scrubbers, electrostatic cercicators or hac.hauses, and selective catalytic reduction to reduce 30 .s, TSO, h'. l r o c a rb o n , and :;O,, emissions. Potential radioactive releases f r:r coal ourning do not appear to present significant health :: encironmental impacts. Oc=bustion of coal should not r2 suit _r the major uncontrolled qr,.' release to the environment of radicact.fe r a c. i um , thorien, ,nd b awc,# ,-P N

aranium since these substances will largely bc controlled b5 2he aavanced air emission control ecu r.cnt. Pacific Cas anc

lectric Compan"1 (PG&E) recently assessed the potential radio-
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                                                                                                                                                                                                          .,n chev concluded that resultant potential whole y?

J coal facility. - i .. .m bocy dose exposure to person, 1ving near such a raci ity

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m'/ h resulting from plant releases (with 99.7 percent particulate f-f~g ccntrol) would amount to less than one percent of th a t received from average ambient backgrounf radia-ion exposures.

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c,~.,9~' . gf k'h.n possible. The sludge can be converted into cvesum of suf ficient --- t- ; r.r , tW. .. 2# auality to use for wallboard and the f13 ash can be a s c.- c T (M la concrete additive in roadbeds

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1 4 .. 3 *. .iC C '". u' .". C. e a~ . changes would be the raising of terc.eratures due to a " reenhouse" . effect of incr>ased atmospheri: carbor dicxide gas of which coal burnin~u is one source. ~he DES -propriately describes . a. _. ,,ro ~s t

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inpact of operating one new coal plan: cn the global climate. i'inally e the DES' comrarison of :?.e coal alternative to Palo Verde i & 5 seriousi, underestim :es T.any at the social, economic, and environmental sts of Palo Verdc 4 & 3. In ,,,...ag.,,u . 3 .,. , w u..n nt g c

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o accident risks, decre as ed 7.il.: acce ::.ca, Aesign and oper'- usse

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tion changes, a:'d associated costs due to the Three ".ile A"a .' a n d .r e a v- ..'.,' . a s~ ~ .- .' ' n t ,

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W = ='} Palo Verde 4 5 5 .ith its relativel'/ poorer performance : _'d . g3 P w.;-$ have one of : .10 passible ef#ects. One result woul; be pcc o ". s ' e . . - n. .' . _' '. . .' - _ ;

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all 3abcock :. 'lilcox reactors Of a simi ar desie,n.

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A. Fue l <'c/a i l ab ili ty . wTs g[,' The DES is unduly optimistic in its analysis f uranium p railability for Palo Verde 4 o 5. 'lt ili tiea ir the U:.i te d hg, ytc 3tates currently plan to build 15 6,0 0 0 -.cgawatts of nuclear g>D .,n (:

cwer capacity by the year 1933 and ar
und 138,000 megawatts
~
-s         1909.   <

ew

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ccwer plants planned by domestic util. ies will recu:.re cumulatively around S75,000 short tons of uraniu- through the

v. ear 2000. This estimate does not i n : '. .:d e any fuel rec.uirements .

after the year 2000.

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.<nown domestic uraniun reserves and pr:bable (but as .z e t

nciscovered) resources av ailab le at a f o rw ,.r d cu t-o f f e c s t

.c

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of the a ount of uranium whic'r is ecc.:.".ical y recoverable at s

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31. "ichael Lieberman of tne - ..cers_:-
                .                                                                                                                 o .'      e' : 11:orria calculated a     r-r; 4

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Lil resources than did the meth:folog'. ;3ed by C^f for uranium.Y,T*yh e s cl<

^ieberman estimated that domest:c res:;rces oco.nomicall,.                                                                                                 -                 (-d.h   .-m pm recoverable at market 7 .- 14 ".-- o c -_-_                                  '        ". -* *. .           .n1".           , 9 7. , 9.9. .    .^ a-.". o -. *m                  " ' ' 5I#

y .. .. 4.9, tons. Both methodolo-ies u roc ...i e '.'.'. ad'.4~ m..a7 4 a_-,.4....

m. . PMC
   .ay be found and recovered at costs substantially above curre:.ffy)
                                                                                                                                                                                  =nGtG market prices.                                                                                                                                                                    pst_al g r3
                .   :. the Lieberman estimate ;s usen, current.,v cconomic 1                                                                                                                        -                                                2-4.,

G domestic uranium resources will be exhaustea by about 1995 UN ..r3

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ander cresent utility plans for nuclear power letalopment. If *** } tr. 'zv>x,

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32 s 111 be exhausted before 2010. In ei:'.er t 225 , :nure woul .ct u,.cc_e-u 4 e... o-n c . ao..A,s .- 1 c um,, . . .4 . 4a_s

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nuclear plants coming on line in the 1^30's and 1990's through-out their full operating lifetimes. T.us , under either scenario, -o . . *. .' . . "d e a e-^ . .e n. i ' v^ e.-a*.4un =

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_ ..-..n- _ _ _ . " . . . ~-. ~ ~ " 213coveries of domestic resources, m2. :r and as jet uns p e ci f i e '. technological breakthrouchs in resource re co re r". , or substantial _.<e "

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of nuclear fuel (such as the President's recent fecision not to pursue development of a breefer re2::Or, ..ch produces more fuel than it consumes) .

3. Fuel Processinc.

Palo Verde 4 & 5 also faces pc:ent;al fuel supply problems related to uranium mining, mi l li .- ~ , in; e n r i c'.n me n t c;pacity.

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tion will be approximately 24, .'] short tons of J 3 0s in 1913.

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reactor. The United States Department of nergy is the scle Cfd:.*

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s.4..~s .= s* O u - capacity and is npected to reach around 27.3 illion SWU in g56 ' n?S 1986. DOE has calculated that the derestic demand for en: ch- 0

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_ _ _m_. a . . t.,.....u..n..... .olant. Iloweve r , this precedure would require .s e a s tan ti ally increased amounts of raw urani;m, thus n:acer'c a t ing the uranium sucol"i croblem already discussed. Ir 2;dition. :CZ has accided to construct an enrichment fac. lit; s_rc a -ew technological ,, ~,vess a . o ". ".A

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Verde 4 . 5 means the costs of disposal are essen-ially ;n.< n ow n . -s.e , .,. .. accun .ation of spent ne t .' c t e n c i a m3 .t v. wiu ._m s e. aralze -,3u .- . g ,..,.,&.4-.-

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hi the effects of inst; tutional instabi lity in a casa invoi cing E 'ZG'7 nuclear w2.3te, Ins Nuclear Fuel Services' (NFS) ~est Valley

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