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Foreign Ownership Could Halt Licensing of South Texas Project Nuclear Reactors; NRC Says NINA Doesn’t Meet Their Requirements

Foreign Ownership Could Halt Licensing of South Texas Project Nuclear Reactors;
NRC Says NINA Doesn’t Meet Their Requirements

May 1, 2013

Contact:
Karen Hadden, Sustainable Energy & Economic Development (SEED) Coalition, 512-797-8481
Susan Dancer, South Texas Association for Responsible Energy, 361-588-2143

Download this release in pdf format for printing.

Contacts: Karen Hadden, SEED Coalition, 512-797-8481
Brett Jarmer and Robert V. Eye, Attorneys, 785-234-4040

Austin, Texas On Tuesday, the Nuclear Regulatory Commission told judges overseeing the licensing case for two proposed South Texas Project reactors that the applicant (NINA) is subject to foreign ownership control or domination requirements and does not meet the provisions of the Atomic Energy Act in this regard. This will help licensing opponents in the hearing that is anticipated this fall.

"This NRC notice is great for us as opponents of two proposed reactors at the South Texas Project," said Karen Hadden, executive director of SEED Coalition, a group that has intervened in the licensing process, along with the South Texas Association for Responsible Energy and Public Citizen. "We hope that we’ll soon see clean, safe energy developed in Texas instead of dangerous nuclear power. We must prevent Fukushima style disasters from happening here."

"Federal law is clear that foreign controlled corporations are not eligible to apply for a license to build and operate nuclear power plants. The evidence is that Toshiba is in control of the project and this precludes obtaining an NRC license for South Texas Project 3 & 4," said Brett Jarmer, an attorney also representing the intervenors.

"Foreign investment in U.S nuclear projects is not per se prohibited; but Toshiba is paying all the bills for the STP 3 & 4 project. This makes it difficult to accept that Toshiba doesn’t control the project," said Robert Eye.

Toshiba North America Engineering, or TANE, will assume exclusive, principal funding authority for the project, but they are a wholly owned subsidiary of Toshiba America, Inc, a Japanese corporation. Opponents contend that this makes them ineligible for licensing.

"National security and safety concerns justify NRC’s limits on foreign ownership and control of nuclear reactors," said Karen Hadden, Director of the Sustainable Energy and Economic Development (SEED) Coalition. "What if a foreign company was careless in running a U.S. reactor? International allegiances are known to shift. Our own reactors could become a weapon to be turned against us in the future and be used to threaten civilians in a war against the U.S. The NRC is right to protect against this possibility."

"Even if the reactors are operated by the South Texas Nuclear Operating Company, they will get their orders from foreign owners. What if their concerns are more about cost-cutting and less about safety?" asked Susan Dancer, President of the South Texas Association for Responsible Energy. "Japanese investors would have us believe that they can come to America and safely build, own and operate nuclear plants, and that we should not concern ourselves with passé laws and regulations, but the recent Fukushima disaster has demonstrated the flawed Japanese model of nuclear safety and the lack of protection afforded the Japanese people. In such an inherently dangerous industry, the American people deserve protection through federal law, including that our nuclear reactors are controlled by the people most concerned about our country: fellow Americans."

"Foreign Ownership, Control or Domination policy is spelled out in the Atomic Energy Act (AEA) of 1954," said Tom "Smitty" Smith, director of Public Citizen’s Texas Office. "In Section 103d it says that no license may be issued to an alien or any corporation or other entity if the Commission knows or has reason to believe it is owned, controlled, or dominated by an alien, a foreign corporation, or a foreign government."

The NRC interprets this to mean that these entities are not eligible to apply for and obtain a license. According to Commission guidance, an entity is under foreign ownership, control, or domination "whenever a foreign interest has the ‘power,’ direct or indirect, whether or not exercised, to direct or decide matters affecting the management or operations of the applicant." There is no set percentage point cut-off point used to determine foreign ownership. The factors that are considered include:

  • The extent of foreign ownership
  • Whether the foreign entity operates the reactors
  • Whether there are interlocking directors and officers
  • Whether there is access to restricted data
  • Details of ownership of the foreign parent company.

For further information please visit www.NukeFreeTexas.org

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Related Material:

The Nuclear Regulatory Commission (NRC) staff issuance determination letter in the South Texas Project, Units 3 and 4
4/30/13

Fire at South Texas Project Nuclear Reactor Site – Just Before Re-licensing Hearing

Media Release:
January 11, 2013

Contact:
Karen Hadden, Sustainable Energy & Economic Development (SEED) Coalition, 512-797-8481
Susan Dancer, South Texas Association for Responsible Energy, 361-588-2143

Download this release in pdf format for printing.

Austin, TX A fire that shot 50 foot flames into the air erupted January 8th in the main transformer at the South Texas Project site near Bay City, Texas, about 90 miles southwest of Houston. Reactor 2, which was out of commission for five winter months in 2011-2012, has not been operating since the fire.

The fire occurred just one week prior to a hearing on re-licensing the two South Texas Project reactors, which will be held January 15th from 2-5 pm and 7-10 pm at the Bay City Civic Center, 201 Seventh St.

“Nuclear reactor fires and explosions create serious safety risks, and are of great concern to those of us who live close by. While the South Texas Project fire was burning I found myself trying to decide which of our rescue ranch horses we could take if my family had to evacuate due to radioactive releases, and which we would have to leave behind,” said Susan Dancer, who lives 8 miles from the reactors.

“The two South Texas nuclear reactors have been here for decades but Matagorda County still has no full-time, paid fire department. Who knows how long it would take for Houston teams to arrive if needed. Meantime, plant managers have been busy cutting personnel in hopes of higher profits, instead of putting safety first.” The STP reactors are owned by NRG, Austin Energy and San Antonio’s CPS Energy.

“Any nuclear reactor is at risk from fires, explosions, hurricanes, tornadoes, floods, earthquakes, lack of cooling water and terrorist attacks, as well as accidents due to human error and mechanical failure,” said Karen Hadden, Director of the Sustainable Energy and Economic Development (SEED) Coalition.

“This is like a used car deal – made fourteen years in advance. Why not wait until 2025 to see what shape the reactors are in before even considering re-licensing? The reactors, now 24 and 25 years old, are licensed to run 40 years – until 2027 and 2028. It’s time to plan for their replacement, not court disaster by giving aging reactors twenty additional years.”

The NRC Event report and hearing information are online at www.NukeFreeTexas.org.

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Foreign Ownership Could Halt Licensing of South Texas Project Nuclear Reactors; NRC Decision to Deny a License for Calvert Cliffs Bodes Well

For Immediate Release:
Sept. 4, 2012

Contact:
Karen Hadden, SEED Coalition, 512-797-8481
Brett Jarmer and Robert V. Eye, Attorneys, 785-234-4040

Download this release in pdf format for printing.

Austin, Texas On Thursday, the Nuclear Regulatory Commission denied an operating license to Unistar Nuclear Energy for its planned third reactor at Calvert Cliffs in Maryland because it is fully owned by France’s Électricité de France (EDF)-a foreign entity. Federal law prohibits a foreign entity from completely owning or controlling a U.S. nuclear plant. The company was given 60 days to find a U.S. partner, which it has been unable to do in the past two years, and if it fails to do so the license application will be fully terminated.

"This decision sets good precedent for us as opponents of two proposed reactors at the South Texas Project," said Karen Hadden, executive director of SEED Coalition, a group which has intervened in the licensing process, along with the South Texas Association for Responsible Energy and Public Citizen. "We hope to see clean, safe energy be developed in Texas instead of dangerous nuclear power. We must prevent Fukushima style disasters from happening here."

"From a regulatory perspective, the Calvert Cliffs decision shows that the prohibition against foreign ownership means what it says. This could be a major setback to the nuclear industry if foreign capital is unavailable for U.S. nuclear projects, said Robert Eye, attorney for the intervenors. "Domestic investors and lenders won’t put their money in nuclear projects without massive government subsidies and loan guarantees. Considering tight budgets, more government money for dangerous and expensive nuclear power doesn’t make sense when cheaper and safer renewable sources are available."

"Federal law is clear that foreign controlled corporations are not eligible to apply for a license to build and operate nuclear power plants. The evidence is that Toshiba is in control of the project and this precludes obtaining an NRC license for South Texas Project 3 & 4," said Brett Jarmer, an attorney also representing the intervenors.

"Foreign investment in U.S nuclear projects is not per se prohibited; but Toshiba is paying all the bills for the STP 3 & 4 project. This makes it difficult to accept that Toshiba doesn’t control the project," said Robert Eye.

Toshiba North America Engineering, or TANE, will assume exclusive, principal funding authority for the project, but they are a wholly owned subsidiary of Toshiba America, Inc, a Japanese corporation. Opponents contend that this makes them ineligible for licensing.

How did foreign ownership become a problem? New Jersey based NRG announced on April 19, 2011 that it would write down its investment in the development of South Texas Project units 3 & 4. Engineering work and pre-construction activities were halted, and NRG stated that Toshiba North America Engineering – TANE – would be responsible for funding ongoing costs to continue the licensing process. TANE is a subsidiary of Toshiba America, Inc., a Delaware corporation that is a wholly owned subsidiary of Toshiba Corporation, a Japanese company.

"National security and safety concerns justify NRC’s limits on foreign ownership and control of nuclear reactors," said Karen Hadden, Director of the Sustainable Energy and Economic Development (SEED) Coalition. "What if a foreign company was careless in running a U.S. reactor? International alliances are known to shift. What if a nation that is friendly toward the U.S. today becomes hostile in the future? Our own reactors could become a weapon to be turned against us to threaten civilians in a war against the U.S."

"Even if the reactors are operated by the South Texas Nuclear Operating Company, they will get their orders from foreign owners. What if their concerns are more about cost-cutting and less about safety?" asked Susan Dancer, President of the South Texas Association for Responsible Energy. "Japanese investors would have us believe that they can come to America and safely build, own and operate nuclear plants, and that we should not concern ourselves with passé laws and regulations, but the recent Fukushima disaster has demonstrated the flawed Japanese model of nuclear safety and the lack of protection afforded the Japanese people. In such an inherently dangerous industry, the American people deserve protection through federal law, including that our nuclear reactors are controlled by the people most concerned about our country: fellow Americans."

Foreign Ownership, Control or Domination policy is spelled out in the Atomic Energy Act (AEA) of 1954. In Section 103d it says that no license may be issued to an alien or any corporation or other entity if the Commission knows or has reason to believe it is owned, controlled, or dominated by an alien, a foreign corporation, or a foreign government.

The NRC interprets this to mean that these entities are not eligible to apply for and obtain a license. According to Commission guidance, an entity is under foreign ownership, control, or domination "whenever a foreign interest has the ‘power,’ direct or indirect, whether or not exercised, to direct or decide matters affecting the management or operations of the applicant." There is no set percentage point cut-off point used to determine foreign ownership. The factors that are considered include:

  • The extent of foreign ownership
  • Whether the foreign entity operates the reactors
  • Whether there are interlocking directors and officers
  • Whether there is access to restricted data
  • Details of ownership of the foreign parent company

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A District Court ruled today that Texas’ environmental agency should have allowed a contested case hearing prior to licensing WCS low level radioactive waste dump in West Texas

For Immediate Release:
Tuesday, May 8, 2012

For More Information:
Tom "Smitty" Smith – 512-797-8468
Trevor Lovell – 512-477-1155

Statement of Tom "Smitty" Smith, Director of the Texas office of Public Citizen, on Today’s State District Court Ruling Remanding the License for the WCS Radioactive Waste Facility in West Texas to TCEQ for a Contested Case Hearing

——————————————————————————–
This case has national significance because it involves Harold Simmons, one of the largest contributors to Republican political campaigns and attack ads. The amount and types of waste could be vastly expanded by Congress thus increasing the amount of money Simmons can make off of the dump, increasing the funds he has available to donate to future political campaigns

New data shows high water levels near the site.

(Austin) Travis County State District Court Judge Livingston, overturned a decision made by the TCEQ three years ago that denied Sierra Club its right to a contested case hearing on the license given to Waste Control Specialists (WCS) for its radioactive waste site. Sierra Club subsequently filed a lawsuit in District Court, and the hearing has been delayed for three years. The Judge ruled today that the nearby residents should have been granted a contested case to prove how they were impacted and why the site might be flawed.

When Waste Control Specialists applied for a license, the staff at TCEQ reviewed the application and recommended its rejection because of their concerns about the possibility of the water intrusion and contamination. The TCEQ’s executive director overruled the recommendation of the staff and recommended issuing the license. Sierra Club and its members requested a hearing on the application. That request was denied and the license was issued by two of the three TCEQ commissioners -appointed by Governor Perry – whose second largest donor is Harold Simmons, the chief financial investor of WCS. Six months later TCEQ’s executive director went to work for WCS.

New information has recently come to light about the WCS site pertaining to the potential for water to come into contact with radioactive materials. According to data provided by TCEQ, water has been detected in monitoring wells at the facility for the last several months. An expert report authored by geologist George Rice and entitled, Occurrence of Groundwater at the Compact Waste Facility Waste Control Specialists Facility Andrews County, Texas, points out that infiltration of rainwater and movement of groundwater was already occurring within the buffer zone of the "Compact Waste Site" as recently as this March.

"This is a big victory for the citizens of Texas and New Mexico. The TCEQ knew this case was likely to be decided today but rushed to sign off on the dump site late last month, allowing radioactive waste to start coming into Texas, showing just how much political pressure Simmons can exert on Texas politics and agencies. The first shipments of radioactive waste arrived just 10 days ago. We call on TCEQ to act responsibly and reverse their decision granting that permit," said Karen Hadden of the Sustainable Energy and Economic Development (SEED) Coalition.

Rose Gardner lives within four miles of the WCS radioactive waste facility and was represented in this case by Sierra Club. "I’m very glad about the judge’s decision today, since we’ll now have a hearing where we can fully examine radioactive risks to our land and water. We now have more livestock than ever before and having the WCS radioactive waste dump nearby threatens our health and safety. TCEQ blocked this hearing before and needs to be more open with information and opportunities for citizens to participate," said Gardner.

"This case is of national significance because the dump’s biggest investor is Harold Simmons, one of the largest contributors to Republican political campaigns and attack ads. He helped to fund the "Swift Boat Veterans for Truth" and the "Obama is a Muslim" attack ads. The Wall Street Journal has reported that Simmons has spent $18 million so far this election cycle and plans to spend a total of $36 million before the end of this cycle. Why would he spend that kind of money? The amount and types of waste could be vastly expanded by a Republican President or Congress thus increasing the amount of money Simmons can make off of the dump and increasing the funds he has available to donate to future political campaigns. And if anyone doubts that his political spending will pay off in favorable treatment, all they have to do is look at how successful he’s been in Texas" said Tom "Smitty" Smith of Public Citizen’s Texas Office.

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Tom "Smitty" Smith
Director, Texas Office
Public Citizen
1303 San Antonio St.
Austin, TX 78701
Phone: 512-477-1155
Cell: 512-797-8468

Burnam Requests AG Ruling on Disclosure of TCEQ Documents Related to Possible Radioactive Contamination

Press Release
For Immediate Release
April 16, 2012

Contact: Craig Adair
(512) 463-0740

TCEQ preparing to allow site to open despite massive water presence underground at site in violation of license terms

(Austin, Texas) ­ Today, Rep. Burnam called on the Executive Director of the Texas Commission for Environmental Quality (TCEQ) to protect public health and safety by not allowing the low-level radioactive waste disposal site in West Texas to open until key questions are answered about the presence of groundwater inside the 100 feet buffer zone around the facility.

The private company licensed to operate the facility, Waste Control Specialists (WCS), which stands to reap millions in profits in disposal fees once the site is operational, is pressing for the agency to allow the site to open even though documents show significant groundwater present at the site, confirming the worst fears of TCEQ scientists that objected to issuance of the license five years ago due to the likelihood of groundwater intrusion at the site in future years.

“It appears that serious public health and safety risks are being ignored in the interest of getting this site up and running,” Burnam said in a press conference at the State Capitol today.

“Until we know the source of this water, the likelihood of groundwater contamination, and the risk to the public, it’s simply irresponsible to open this site,” Burnam added.

If the site opens before monitoring wells inside the buffer zone are dry, WCS could violate license condition 65 which states, “In the event that saturated conditions are detected inside the buffer zone, the Licensee shall cease all waste disposal operations and notify the executive director immediately.”

“How can TCEQ let the site open if WCS would be in violation of its license on its first day of operation?” Burnam asked.

Burnam called on TCEQ to not issue the final certification letter until:

  1. water is no longer present within the buffer zone,
  2. the agency knows the source and extent of groundwater currently present inside the buffer zone and can demonstrate that the Ogallala Aquifer is not at risk of contamination, and
  3. the Attorney General has ruled on the confidentiality of the secret internal documents.

Also today, Rep. Burnam requested a ruling by Attorney General Greg Abbott whether secret TCEQ documents about the site that he obtained through a 2009 open records request may be disclosed in the interest of public health and safety. The agency initially withheld the documents but last year was ordered to release them due to a court ruling.

“As my letter to the AG today explains, I don’t think the statutory criteria for keeping these documents secret have been met,” Burnam said, “especially when you consider the very serious public health and safety implications involved.”

The documents discuss the agency’s concerns with WCS’ license application and the risks of possible radioactive contamination of nearby groundwater tables, but Rep. Burnam is prohibited from sharing the documents with the public under a confidentiality agreement signed in September 2009 at the insistence of TCEQ.

“The public has a right to know what the scientists — whose salaries are paid by their tax dollars — thought about the adequacy of the site, the possibility of groundwater contamination, and the risks to their safety,” Burnam added. “I hope the AG will allow me to respect that right by removing the gag order.”


Related Documents:

REPORTS