Contents

• Budget Structure
• FY2018FY2021 Request
• U.S. Plutonium Disposition

Tables

• Table 1. DOE Defense Nuclear Nonproliferation Appropriation, FY2018-FY2021

Summary

The Department of Energy's (DOE's) nonproliferation and national security programs provide technical capabilities to support U.S. efforts to "prevent, counter, respond" to the proliferation of nuclear weapons worldwide, including by both states and non-state actors. These programs are administered by the National Nuclear Security Administration (NNSA), a semi-autonomous agency established within DOE in 2000. NNSA is responsible for maintaining the U.S. nuclear weapons stockpile, providing nuclear fuel to the Navy, nuclear and radiological emergency response, and nonproliferation. NNSA recently reorganized the Office of Defense Nuclear Nonproliferation, which is funded under the Defense Nuclear Nonproliferation (DNN) account.

This report addresses the programs in the NNSA's DNN account, appropriated by the Energy and Water appropriations bill. The FY2020 Consolidated Appropriations bill (P.L. 116-94) funded the NNSA DNN accounts at $2.164 billion.

The FY2021 request for DNN appropriations was $2.031 billion. The proposal would include unobligated prior year balances. The reduction continues an earlier trend to reduce prior-year carryover balances. According to the budget justification, the decrease of 6.2% from the FY2020-enacted level is due to "completion of funding for contractual termination" of the mixed-oxide fuel (MOX) project at the Savannah River Site. Request
• FY2017 Funding
• Issues for Congress
• U.S. Plutonium Disposition
• Cooperation with the Russian Federation
• Prior Years

Budget Structure

The Defense Nuclear Nonproliferation (DNN) programs were reorganized starting with the FY2016 request. There are now two main mission areas under the DNN appropriation: the Defense Nuclear Nonproliferation Program and the Nuclear Counterterrorism and Incident Response Program (NCTIR). NCTIR was previously funded under Weapons Activities. According to the FY2016 budget justification, "These transfers align all NNSA funding to prevent, counter, and respond to nuclear proliferation and terrorism in one appropriation."

The DNN Program is now divided into foursix functional areas, plus a funding line for Nonproliferation Construction:

• Materials Management and Minimization (M3) conducts activities to reduce and, where possible, eliminate stockpiles of weapons-useable material around the world. Major activities include conversion of reactors that use highly enriched uranium (useable for weapons) to low enriched uranium, removal and consolidation of nuclear material stockpiles, and disposition of excess nuclear materials.
• Global Material Security has three major program elements: international nuclear security, radiological security, and nuclear smuggling detection and deterrence. Activities toward achieving those goals include the provision of equipment and training, workshops and exercises, and collaboration with international organizations.
• Nonproliferation and Arms Control implements programs that aim to strengthen international nuclear safeguards, control the spread of dual-use technologies and expertise, and verify nuclear reductions and compliance with treaties and agreements, according to the FY2018 justification. This program conducts reviews of nuclear export applications and technology transfer authorizations.
• DNN R&D advances nuclear detection and nuclear forensics technologies. This includes both proliferation detection and nuclear detonation detection.
• The Nonproliferation Construction program consists of the Mixed-Oxide (MOX) Fuel Fabrication Facility (MFFF), which is being built in South Carolina to convert surplus weapons plutonium into nuclear reactor fuel. Like the FY2017 request, the FY2018 request proposes that this construction project be terminated and replaced with a different disposal method.

National Technical Nuclear Forensics Research and Development (NTNF R&D) examines and evaluates nuclear materials and devices, nuclear test explosions or radiological dispersals, and post-detonation debris through nuclear forensics development at the national laboratories. The program includes a field response capability to assist the interagency in the event of a nuclear or radiological incident.

Defense Nuclear Nonproliferation Research and Development (DNN R&D) advances U.S. capabilities to detect and characterize global nuclear security threats such as foreign nuclear material and weapons production, diversion of special nuclear material, and nuclear detonations.

The Nonproliferation Construction program consists of the Surplus Plutonium Disposition Project (SPD) and the Mixed-Oxide (MOX) Fuel Fabrication Facility (MFFF), which was to be built in South Carolina to convert surplus weapons plutonium into nuclear reactor fuel. This project was terminated and replaced with a different disposal method (see below).

The Nuclear Counterterrorism and Incident Response Program (NCTIR) evaluates nuclear and radiological threats and develops emergency preparedness plans, including organizing scientific teams to provide rapid response to nuclear or radiological incidents or accidents worldwide.

FY2018FY2021 Request

The FY2018FY2021 request for DNN appropriations totals $1.79 billion. The budget justification says that this decrease is due to the use of prior-year balances.

The biggest proposed decreases compared to the FY2017 appropriations are in the Global Material Security (-$30 million)—to reduce prior year carryover balances—and the Nonproliferation Construction (-$56 million) accounts—due to the proposed termination of MFFF construction. A new line item of a proposed $9 million was added under Nonproliferation Construction for the dilute and dispose strategy. The FY2018 request for Nonproliferation R&D is larger than the FY2017 request, but the FY2018 request amount is a (-$23 million) decrease from FY2017 appropriations.

An increase of approximately $44 million (compared to the FY2017 appropriations) was requested for the M3 account. The proposed activities include an increase for the HEU Reactor Conversion program using prior-year uncosted balances primarily from the U.S. plutonium disposition program. An increase was proposed for all subprograms under the Nuclear Counterterrorism account, with the largest for the Emergency Response subprogram, as in the FY2017 request.

FY2017 Funding

The Senate Report to the FY2017 Energy and Water Appropriations bill (S.Rept. 114-236) said that the committee "is concerned that there is disconnect between real-world threats and the planned work in nonproliferation." The report directs the NNSA to provide a report that prioritizes threats by mid-June 2017. The Senate recommended funding the full budget request but proposed moving $20 million from the Material Management and Minimization account into Global Material Security and Defense Nuclear Nonproliferation Research and Development accounts.

The House Appropriations Committee (H.Rept. 114-532) recommended the full budget request. The committee report recommended that an additional $20 million be spent on international nuclear security projects within the Global Material Security account. It also recommended an additional $14 million to develop alternative funds for high-performance research reactors, and moving this program to the Nonproliferation R&D account. The committee recommended the same funding for the MOX Fuel Fabrication Facility as in FY2016, $340 million, or $70 million above the request. It also prohibits the use of this funding to put the facility in cold standby. After a series of continuing resolutions, the FY2017 omnibus bill (P.L. 115-31) was passed in May 2017.

Issues for Congress

U.S. Plutonium Disposition

The FY2018totaled $2.031 billion, reflecting a 6.2% decrease from FY2020-enacted levels. The budget justification says that this decrease is mainly due to the "completion of funding for contractual termination" of the Mixed Oxide Fuel Fabrication Facility (MOX) project at the Savannah River Site. Funding for that program was decreased by 50% (-$150 million).

A $42 million, or 9.65%, decrease to the Global Material Security program was due to an increase in FY2020 funds for the Cesium Irradiator Replace Program.

The budget proposal requests a $37.2 million, or 10%, increase in funding for the Material Management Minimization program. The increase is mainly in the conversion subprogram, which is working to establish non-HEU based molybdenum-99 production technologies in the United States.

The National Technical Nuclear Forensics Research and Development (NTNF R&D) is a new program in FY2021. The budget request says that the program will allow NNSA to "take on a more active leadership role" in nuclear forensics. The $40 million in funding for NTNF was moved from the DNN R&D Nuclear Detonation Detection subprogram.

As in past years, the FY2020 appropriations included a provision prohibiting funds in the Defense Nuclear Nonproliferation account for certain activities and assistance in the Russian Federation. Appropriations bills have prohibited this since FY2015.¹

U.S. Plutonium Disposition The FY2021 budget justification requests funds related to the U.S. plutonium disposition program in the M3 Material Disposition subprogram and the Nonproliferation Construction accounts. The goal of this program is disposalSurplus Plutonium Disposition subprogram. The United States pledged to dispose of 34 metric tons of U.S. surplus weapons plutonium by converting it, which was originally to be converted into fuel for commercial power reactors.¹ 2 The U.S. facility for this purpose was to be MFFF,the Mixed Oxide Fuel Fabrication Facility (MFFF), which had been under construction at the DOE Savannah River site in South Carolina. The MFFF, which would make fuel for nuclear reactors out of surplus weapons plutonium, has faced sharply escalating construction and operation cost estimates, and the Obama Administration proposed to terminate it in FY2017. Instead, a Dilute and Dispose (D&D) program for this material is now in a preconceptual design phase. In late FY2017, the conceptual design phase began, and was expected to cost "between $3 and $5 million," according to the FY2017 congressional budget justification. The costs of the FY2018 request for this subprogram (M3 Material Disposition) reflect the use of prior year uncosted balances and the start of the D&D design activities.

In FY2015 and FY2016, Congress appropriated $345 million for the Mixed Oxide Fuel Fabrication Facility project (the same as the FY2016 request, but higher than the FY2015 request). The recommendation provided funding to sustain the current pace of construction on the MOX facility in FY2016 and included a provision that prohibits the use of MOX funding to place the project in cold standby. The House Appropriations Committee's summary of the Energy and Water portion of the FY2017 omnibus bill says that it includes $335 million for the MOX Fuel Fabrication Facility: "to help fulfill the international commitment by the U.S. to operate a Mixed Oxide (MOX) Fuel Fabrication Facility to dispose of surplus plutonium."

Cooperation with the Russian Federation²

In December 2014, the Russian Federation informed the United States that no new cooperative nonproliferation projects would be approved, but existing projects could continue until their expiration. Russia will continue to fund and carry out the removal and repatriation to Russia of highly enriched uranium fuel from Russian-origin research reactors worldwide, a joint program with the United States. Verification of plutonium shut-down and HEU and plutonium disposition plans would also continue. However, cooperation was to end on other cooperative projects such as fissile material security sustainability programs that ensure continued use and upgrades to physical security and border control systems. Then, following the Russian takeover of Crimea in April 2014, the Department of Energy further restricted cooperation with the Russian Federation, and Congress specifically prohibited new projects.

The FY2015 House Appropriations Committee report said that no new cooperative nonproliferation programs with the Russian Federation could be funded, and directed DOE to report to Congress on whether ongoing and new nuclear security programs with Russia are addressing U.S. national security goals. The FY2015 Consolidated Appropriations Act did not include requested funding for NNSA Global Material Security programs in Russia.

The FY2016 DNN budget request did not request any funds for specific projects in the Russian Federation but says, "Given the size of Russia's material stockpiles, GMS will continue to look for partnership opportunities with Russia, on the general assumption that each side shall independently bear its costs related to cooperative activities."

The FY2016 appropriations provided "no new funds to enter into contracts and agreements with Russia in fiscal year 2016," but did provide a waiver. H.Rept. 114-91 said that:

The recommendation provides no new funds for projects in Russia and the Committee awaits submission of a Secretarial waiver for nonproliferation work with the Russian Federation should such activities be determined to be in the national security interest by the Secretary of Energy. The Committee continues to view the NNSA's programs as important for reducing international dangers to U.S. national security posed by the proliferation of nuclear technologies to other nation states and the threat of nuclear terrorism, rather than focused on domestic security activities that are the responsibility of other agencies.

The FY2017 NDAA contained similar provisions. In the FY2017 request, no new funds for projects with Russia were proposed; $21.5 million of the prior-year funding from FY2016 Russia-related nonproliferation activities will be used in FY2017 for other DNN activities, according to the budget request.

On October 3, 2016, Russian President Vladimir Putin issued a decree suspending participation in a bilateral U.S.-Russia weapons plutonium disposal agreement (the 2000 Plutonium Management and Disposition Agreement, or PMDA). The next day, Russia suspended participation in a 2013 cooperative agreement on nuclear- and energy-related research and terminated a third from 2010 on exploring options for converting research reactors from weapons-usable fuel.

Continuing activities with Russia (that do not require payments to Russia) include monitoring visits in Russia under the U.S.-Russia Plutonium Production Reactor Agreement, removal of Russian-origin material from third countries, and hosting Russian monitoring visits to U.S. nuclear fuel fabrication facilities under the 1993 HEU Purchase Agreement.

Prior Years

For FY2015, the Administration requested $1,555.2 million for Defense Nuclear Nonproliferation programs and Congress appropriated $1,641.4 million. After rescissions and use of prior-year funds, the total appropriated was $1,616.4 million. The bill directed the use of prior-year balances from the Russian Fissile Material Disposition subaccount and did not fund the request for international material protection work in Russia. Overall, the FY2015 request included reductions in virtually all nonproliferation programs, in particular the U.S. plutonium disposition program (see below). Both the House bill and the Senate Appropriations Subcommittee increased funding for these programs.

Prior to the FY2016 reorganization, the DNN programs included five subprograms. Appropriations from FY2013 to FY2015 can be viewed in Table 2.

Footnotes

Disposition of surplus plutonium is required by a 1998 agreement, amended in 2010, between the United States and the Russian Federation. Each country agreed to convert 34 metric tons of surplus weapons-grade plutonium to a form that could not be returned to nuclear weapons, to begin in 2018. Russia suspended its participation in the agreement in October 2016 due to what it called "hostile actions" by the United States. Both countries appear to be continuing their plans for surplus plutonium disposition. See CRS Report R43125, Mixed-Oxide Fuel Fabrication Plant and Plutonium Disposition: Management and Policy Issues, by Mark Holt and Mary Beth D. Nikitin.

1.	For more details, see CRS Report R43125, Mixed-Oxide Fuel Fabrication Plant and Plutonium Disposition: Management and Policy Issues, by [author name scrubbed] and [author name scrubbed].
2.	See also, "The Future of Cooperation with Russia" in CRS Report R43143, The Evolution of Cooperative Threat Reduction: Issues for Congress, by [author name scrubbed] and [author name scrubbed] faced sharply escalating construction and operation cost estimates, and the Obama Administration proposed to terminate it in FY2017. After congressional approval, in 2018 DOE ended MFFF construction and began pursuing a replacement disposal method, Dilute and Dispose (D&D), for this material. The D&D method consists of "blending plutonium with an inert mixture, packaging it for safe storage and transport, and disposing of it in a geologic repository," according to the FY2021 request. The Nonproliferation Construction account's proposed decrease of $150 million in FY2021 is due to the final steps in ending construction of the MFFF. In her testimony before the House Appropriations Committee, NNSA Administrator Lisa Gordon-Hagerty said that decrease reflects the completion of the MOX contractual termination settlement. She said that the requested $148.6 million would be used for the Surplus Plutonium Disposition (SPD) project, in support of the D&D method. FY2021 activities would include "execution of early site preparation and long lead procurements activities, as well as continuing the maturation of the design for all major systems supporting the plutonium processing gloveboxes." Author Contact Information Mary Beth D. Nikitin, Specialist in Nonproliferation ([email address scrubbed], [phone number scrubbed]) Footnotes
1.	See the 2017 version of this report for more detailed background information.
2.