About 2,200 Metric Tons of Spent Nuclear Fuel Is Expected to Accumulate Annually, Mostly in Wet Storage, but This Pace Is Expected to Change as Reactors Shut Down

Spent nuclear fuel is expected to accumulate at an average rate of about  2,200 metric tons per year in the United States, mostly in wet storage, but  this rate and the amount in wet storage are expected to decrease as  more reactors, as projected, begin to shut down in the 2030s. By 2067—after the  last of the currently operating reactors have shut down—nearly all the  139,000 metric tons of spent fuel expected to be generated by currently  operating reactors is expected to be in dry storage. Federal Liability for Spent Nuclear Fuel Management Is Based on Costs Incurred Because DOE Has Not Met Contract Obligations

Federal liability for managing spent nuclear fuel has been based on costs  that owners and generators of this fuel have paid because DOE has not  met its contractual obligations to begin disposing of this fuel, and DOE’s  estimate of future liability—$21.4 billion through 2071—is based on how  long the federal government is expected to pay these costs. Under the standard contract, DOE was obligated to take  title to and dispose of a certain quantity of spent nuclear fuel beginning in  1998. DOE’s estimate of future liability is based on how long DOE expects the  federal government to continue to pay for managing spent nuclear fuel  that DOE was obligated to have begun disposing of if it had begun picking  up the fuel in 1998. This estimate assumes that DOE will begin  accepting spent nuclear fuel in 2021 and complete the process in 2071,  ending the federal government’s liability. However, DOE has previously  extended the dates in its liability estimates several times. Experts and Stakeholders Identified Challenges to and Suggestions for Managing Spent Nuclear Fuel at Interim Storage Facilities within DOE’s Time Frames

Experts and stakeholders in the area of spent nuclear fuel management,  including DOE and other government officials, identified four major types  of challenges to the federal government’s ability to meet DOE’s time  frames for managing spent nuclear fuel at consolidated interim storage  facilities. Fourth, achieving sustainable public acceptance of transporting and  storing spent nuclear fuel is a societal challenge that will need to be  addressed irrespective of any policy that is implemented and that experts  said DOE could mitigate with a coordinated outreach strategy. DOE officials said, however, that the  agency’s strategy could not be fully implemented until Congress provides  direction on a path forward. A coordinated outreach strategy would be an  important aspect of informing the public about spent nuclear fuel  management plans and DOE’s current management efforts irrespective of  which path Congress agrees upon. DOE officials confirmed that they do not have a coordinated outreach  strategy for communicating with specific stakeholders and the general  public about their activities related to spent nuclear fuel management. To identify the basis of federal liability for spent nuclear fuel management  to date and of DOE’s estimate of future liabilities, we reviewed documents  from the Departments of Energy (DOE) and Justice. To assess the challenges, if any, that experts and stakeholders have  identified to the federal government’s ability to meet DOE’s time frames  for managing spent nuclear fuel at consolidated interim storage facilities  and potential ways for DOE to mitigate the challenges, we identified  individuals with spent nuclear fuel management experience and  expertise. Under the Exelon Settlement agreements,  DOE is liable for spent nuclear fuel storage costs that owners and  generators would not have incurred if DOE had accepted and disposed of  the fuel at this rate. Dry Storage Costs: Costs to purchase canisters and casks, including  canisters that may be licensed for transport and casks for transferring  spent nuclear fuel to the dry storage facility; costs to load spent  nuclear fuel into and to transport canisters and casks to the dry  storage facility; costs of ancillary equipment for casks and cask  loading, such as crawler-type transporters, dollies, and vacuum-drying  equipment; costs to conduct initial loading demonstrations required by  the Nuclear Regulatory Commission (NRC); costs for training and  development of procedures; costs for cask-loading campaign  mobilization and demobilization; costs to study and to evaluate spent  nuclear fuel storage options; costs for quality assurance inspections of  cask vendors; costs for security improvements required by NRC for  the dry storage facility; costs of maintaining and operating the dry  storage facility; costs for security improvements or upgrades required  to comply with utility’s security plan approved by the NRC; and costs  to design, license and build the dry storage facility, including costs of  building the portion of the facility that will be required for the dry  storage of the utility’s spent nuclear fuel in addition to utility’s  allocations, provided that the utility can demonstrate that it was more  cost effective to incur the costs to design, license and build the dry  storage facility during the claim period rather than after termination of  the agreement. 3. Appendix V: Process and Costs of Transferring Spent Nuclear Fuel from Wet to Dry Storage (Text for Interactive Figure 7)

Appendix V: Process and Costs of  Transferring Spent Nuclear Fuel from Wet to  Dry Storage (Text for Interactive Figure 7)
Nuclear power reactor and spent nuclear fuel pools—Spent nuclear fuel typically  cools for at least 5 years in a pool before a canister ($700,000 to $1.5 million) is placed in  the pool, filled with spent nuclear fuel, removed from the pool, and dried.
Why GAO Did This Study

DOE is responsible for disposing of commercial spent nuclear fuel. DOE entered into contracts with owners and generators of spent nuclear fuel to begin disposing of it beginning in 1998, with plans for disposal in a national repository. DOE, however, was unable to meet the 1998 date and, as a result of lawsuits, the federal government has paid out about $3.7 billion for storage costs. DOE proposed a new strategy in January 2013 to build consolidated interim storage facilities—starting operations in 2021 and 2025.
GAO was asked to review issues related to DOE's strategy for managing spent nuclear fuel. This report (1) describes the expected rate of spent nuclear fuel accumulation in wet and dry storage, (2) identifies the basis of federal liability for spent nuclear fuel management to date and of DOE's estimate of future liabilities, and (3) assesses challenges, if any, that experts and stakeholders have identified to the federal government's ability to meet DOE's time frames for managing spent nuclear fuel at consolidated interim storage facilities and potential ways for DOE to mitigate the challenges. GAO reviewed documents from DOE and other agencies, and interviewed experts and stakeholders from industry, federal and state governments, interest groups, and independent entities.

What GAO Found

Spent nuclear fuel—the used fuel removed from nuclear power reactors—is expected to accumulate at an average rate of about 2,200 metric tons per year in the United States. This spent nuclear fuel is mostly stored wet, submerged in pools of water. However, since pools have been reaching their capacities, owners and generators of spent nuclear fuel (typically utilities and reactor operators) have been transferring it to canisters that are placed in casks on concrete pads for dry storage—which is an expensive and time-consuming process. When operating reactors' licenses begin to expire in the 2030s, the rate of spent nuclear fuel accumulation is expected to decrease, but the amount in dry storage will increase as the pools are closed and all spent nuclear fuel is transferred to dry storage. By 2067, the currently operating reactors are expected to have generated about 139,000 metric tons of spent nuclear fuel, nearly all of which is expected to be transferred to dry storage.
Federal liability for managing spent nuclear fuel has been based on costs that owners and generators of this fuel have paid because the Department of Energy (DOE) has not met its contractual obligation to dispose of spent nuclear fuel. DOE's estimate of future federal liability is based on how long DOE expects the federal government to continue to pay the costs for managing spent nuclear fuel to plant owners and generators. Generally, the damages paid—mostly for the costs of transferring spent nuclear fuel from wet to dry storage—have been for costs that owners and generators would not have incurred if DOE had begun disposing of the spent nuclear fuel. DOE's most recent estimate of future liability—$21.4 billion through 2071—assumes that DOE will begin taking title to and possession of spent nuclear fuel in 2021 and complete the process in 2071, thereby ending the federal liability. DOE has extended the expected date that the last of the spent nuclear fuel will be picked up several times, and each extension has added to the future federal liability.
Spent nuclear fuel management experts and stakeholders GAO spoke with identified several legislative, regulatory, technical, and societal challenges to meeting DOE's time frames for managing spent nuclear fuel at interim storage facilities. Although DOE has begun to take actions to address some of these challenges, officials noted that the department's strategy cannot be fully implemented until Congress provides direction on a new path forward. However, experts and stakeholders believe that one key challenge—building and sustaining public acceptance of how to manage spent nuclear fuel—will need to be addressed irrespective of which path Congress agrees to take. In this context, they suggested the need for a coordinated public outreach strategy regarding spent nuclear fuel management issues, including perceived risks and benefits, which would be consistent with the Administration's directive to be more transparent and collaborative. DOE officials stated they currently do not have such a strategy. Without a better understanding of spent nuclear fuel management issues, the public may be unlikely to support any policy decisions about managing spent nuclear fuel.

What GAO Recommends

DOE should implement a coordinated outreach strategy to better inform the public about federal spent nuclear fuel management issues. DOE generally agreed with the findings and recommendation in the report.