ML20092H417

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Nuclear Industry Recommendations for Economic Recovery Letter from Maria Korsnick, NEI
ML20092H417
Person / Time
Site: Nuclear Energy Institute
Issue date: 03/19/2020
From: Korsnick M
Nuclear Energy Institute
To: Kudlow L, Munchin S
NRC/OCFO, US Dept of the Treasury, US Executive of the President, Committee on Homeland and National Security
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References
Download: ML20092H417 (3)


Text

MARIA KORSNICK President and Chief Executive Officer 1201 F Street NW, Suite 1100 Washington, DC 20004 P: 202.739.8187 mgk@nei.org nei.org March 19, 2020 The Honorable Steven T. Mnuchin The Honorable Lawrence A. Kudlow Secretary of the Treasury Assistant to the President for Economic Policy U.S. Department of the Treasury and Director of the National Economic Council 1500 Pennsylvania Avenue, N.W. The White House Washington, D.C. 20220 Washington, D.C. 20500

Subject:

Nuclear Industry Recommendations for Economic Recovery

Dear Secretary Mnuchin and Director Kudlow:

The U.S. nuclear energy industry is committed to working with the administration to provide clean, reliable and affordable electricity as the nation addresses the COVID-19 crisis.

On behalf of the NEI member companies 1 who operate, service and supply reactors across the country, let me express our deepest appreciation for the commitment that the President, the Vice President, and you have demonstrated to ensuring that our nations workers and businesses have the support they need during this difficult time. Our member companies are anticipating - or are already experiencing - severe financial strain as product orders are delayed or canceled, as industrial electricity demand falls, and as workforce availability becomes increasingly constrained. To help in addressing these near-term challenges, we have identified specific policy and legislative proposals that would be of immediate benefit in helping the people and the companies of our nations nuclear energy sector to withstand the ongoing operational and economic disruption:

Enabling essential support for nuclear infrastructure - As advocated by the Edison Electric Institute, lifeline sectors including the nuclear power industry may need to share 1

NEI is responsible for establishing unified policy on behalf of its members relating to matters affecting the nuclear energy industry, including the regulatory aspects of generic operational and technical issues. NEIs members include entities licensed to operate commercial nuclear power plants on the United States, nuclear plant designers, major architect and engineering firms, fuel cycle facilities, nuclear materials licensees, and other organizations involved in the nuclear energy industry.

The Secretary of the Treasury and the Director of the National Economic Council March 19, 2020 Page 2 essential personnel, including line and field workers, control room operators, and anyone else deemed essential, to address workforce shortages. Advanced-approved travel and regulatory waivers will be essential to the timely movement and sharing of personnel, especially when crossing state or local county lines. Any federal, state, or local travel restriction declarations must accommodate the timely and secure movement of lifeline sector assets and essential personnel. Additionally, critical employees - employees with day-to-day responsibility to maintain the operation and reliability of critical infrastructure including ongoing and planned refueling of reactors - should have prioritized access to (1) testing; (2) anti-viral and other treatments for sick individuals; (3) vaccines, when vaccines are tested and proven safe for the public; and (4) personal protective equipment such as N95 respirator masks, Tyvek suits, and nitrile gloves.

Provide grants for COVID-19-related paid leave - Authorize the Secretary of Energy to provide grant assistance to project owners of large critical infrastructure projects utilizing Department of Energy loan guarantees to defray the costs of paid leave granted to employees to address work interruptions related to COVID-19. This is necessary to ensure workforce and project continuity at the Plant Vogtle 3 and 4 nuclear construction site in Waynesboro, Georgia.

Incentivize investments in resilient nuclear generation - Supporting near-term investments in the operation and maintenance of nuclear power reactors will ensure their availability to provide around-the-clock electricity for up to 24 months at a time. The bipartisan Nuclear Powers America Act (H.R. 2314/S.1134) would provide a 30 percent investment tax credit for certain expenditures, helping to ensure the financial viability of the nations nuclear fleet which provides nearly 20% of Americas electricity. As was done under Section 1603 of the American Recovery and Reinvestment Tax Act of 2009, these credits should be convertible to payments in lieu of tax credits.

Provide temporary regulatory fee relief - Various agencies, including the U.S. Nuclear Regulatory Commission, the Federal Emergency Management Agency, the Federal Energy Regulatory Commission, and the U.S. Army Corps of Engineers, collect fees from licensees to offset their operating budgets. These fees amount to approximately $15 million annually for a typical two-unit nuclear power station. Temporarily waiving these fees will result in expeditious savings for consumers as well as increased revenues that can be invested by industry for various capital needs. 2 2

As a general matter, regulatory enforcement-related fees should not be waived.

The Secretary of the Treasury and the Director of the National Economic Council March 19, 2020 Page 3 As the longer-term ramifications of the COVID-19 crisis become more clear, we expect to identify additional nuclear energy sector needs. We will also work with our members to identify opportunities for the nuclear energy sector to contribute to our nations economic recovery. But recognizing the need for a prompt response, the four proposals identified above, if enacted, would have an immediate and extremely beneficial effect on the workers and the companies across the nations nuclear energy sector. We urge your support for these proposals, and we stand ready to work with you to ensure our nations energy needs are met safely, reliably and affordably - today, tomorrow, and for the long-term.

Sincerely yours, Maria Korsnick c: The Honorable Mitch McConnell, Majority Leader, U.S. Senate The Honorable Charles Schumer, Democratic Leader, U.S. Senate The Honorable Nancy Pelosi, Speaker, U.S. House of Representatives The Honorable Kevin McCarthy, Republican Leader, U.S. House of Representatives The Honorable Dan Brouillette, Secretary of Energy