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Energy and Water Development Appropriations for Defense Nuclear Nonproliferation: In Brief

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Energy and Water Development
December 8, 2020June 10, 2021
Appropriations for Defense Nuclear
Mary Beth D. Nikitin
Nonproliferation: In Brief
Specialist in Specialist in
Nonproliferation Nonproliferation
The Department of Energy’s (DOE’s) nonproliferation and national security programs The Department of Energy’s (DOE’s) nonproliferation and national security programs

provide technical capabilities provide technical capabilities to support U.S. efforts to “prevent, counter, respond” to to support U.S. efforts to “prevent, counter, respond” to
the proliferation of nuclear weapons worldwide, including by both states and non-state 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- 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 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 nuclear weapons stockpile, providing nuclear fuel to the Navy, nuclear and radiological emergency response, and nuclear
nonproliferation activities. NNSA’s Office of Defense Nuclear Nonproliferation is funded under the Defense nonproliferation activities. NNSA’s Office of Defense Nuclear Nonproliferation is funded under the Defense
Nuclear Nonproliferation (DNN) account.Nuclear Nonproliferation (DNN) account.
This report addresses the programs in the DNN account, appropriated by the Energy and Water appropriations This report addresses the programs in the DNN account, appropriated by the Energy and Water appropriations billbil . .
The The FY2021FY2022 request for DNN appropriations was $2. request for DNN appropriations was $2.031 billion26 bil ion. The proposal included unobligated prior year . The proposal included unobligated prior year
balances. The reduction continues an earlier trend to reduce prior-year carryover balances. According to the balances. The reduction continues an earlier trend to reduce prior-year carryover balances. According to the
budget justification, 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.
The FY2020 Further Consolidated Appropriations Act (P.L. 116-94) funded the NNSA DNN accounts at $2.164
billion. The FY2021 Continuing Appropriations Act (P.L. 116-159) continued funding at this level through
December 11. As in past years, the FY2020increase of $4 mil ion, or 0.2%, from the FY2021-enacted level includes increases in Nonproliferation and Arms Control and DNN R&D programs, offset by the completion of Material Management and Minimization and Global Material Security. FY2021 Energy and Water Development funding was enacted by Division D of the Consolidated Appropriations Act, 2021 (P.L. 116-260), signed by the President on December 27, 2020, and included $2.26 bil ion for Defense Nuclear Nonproliferation. As in past years, the FY2021 appropriations included a provision prohibiting funds in the Defense appropriations included a provision prohibiting funds in the Defense
Nuclear Nonproliferation account for certain activities and assistance in the Russian Federation. Nuclear Nonproliferation account for certain activities and assistance in the Russian Federation. Appropriations
bills Appropriations bil s have prohibited this since FY2015. have prohibited this since FY2015.
The FY2021 Energy and Water Development appropriations bill was been included as Division C in a seven-bill
“minibus” (H.R. 7617) that passed the House on July 31. The House bill approved DNN appropriations at $2.24
billion. The Senate Appropriations Committee majority draft bill for FY2021 energy and water development
appropriations includes $2.095 billion for Defense Nuclear Nonproliferation, $30 million designated for the
Uranium Reserve Program.

Congressional Research Service Congressional Research Service


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Contents
Budget Structure ............................................................................................................................. 1
FY2021 1 FY2022 Request .............................................................................................................................. 2
U.S. Plutonium Disposition ....................................................................................................... 3
FY2021 Appropriations ................................................................................................................... 3
House ........................................................................................................................................ 3
Senate ............. 4 Tables Table 1. DOE Defense Nuclear Nonproliferation Appropriation, FY2018-FY2021, and FY2022 Request ........................................................................................................................... 4

Tables
Table 1. DOE Defense Nuclear Nonproliferation Appropriation, FY2018-FY2021 ....................... 2

2 Contacts
Author Information .......................................................................................................................... 4

Congressional Research Service Congressional Research Service

Energy & Water Development Appropriations for Defense Nuclear Nonproliferation

Budget Structure
The Defense Nuclear Nonproliferation (DNN) The Defense Nuclear Nonproliferation (DNN) programs were reorganized starting with the
FY2016 request. There are two main mission areas under the DNN appropriationappropriation is organized under two main mission areas: the Defense : the Defense
Nuclear Nonproliferation Program and the Nuclear Counterterrorism and Nuclear Nonproliferation Program and the Nuclear Counterterrorism and Incident Response 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 sixProgram (NCTIR).1 The DNN Program’s FY2022 request proposes moving the National Technical Nuclear Forensics Research and Development (NTNF R&D) into a subprogram of Defense Nuclear Nonproliferation Research and Development (DNN R&D).2 The FY2022 request is divided into the following functional areas: functional areas:
  Materials Management and Minimization (M3) conducts activities to reduce conducts activities to reduce
and, where possible, eliminate stockpiles of weapons-useable material around the and, where possible, eliminate stockpiles of weapons-useable material around the
world. Major activities include conversion of reactors that use highly enriched world. Major activities include conversion of reactors that use highly enriched
uranium (useable for weapons) to low enriched uranium, removal and uranium (useable for weapons) to low enriched uranium, removal and
consolidation of nuclear material stockpiles, and disposition of excess nuclear consolidation of nuclear material stockpiles, and disposition of excess nuclear
materials. materials.
  Global Material Security (GMS) has three major program elements: has three major program elements: international
international nuclear security, radiological security, and nuclear smuggling nuclear security, radiological security, and nuclear smuggling detection and detection and
deterrence. Activities toward achieving those goals include the provision of deterrence. Activities toward achieving those goals include the provision of
equipment and training, workshops and exercises, and collaboration with equipment and training, workshops and exercises, and collaboration with
international organizations. international organizations.
  Nonproliferation and Arms Control (NPAC) implements programs that aim to implements programs that aim to
strengthen international nuclear safeguards, control the spread of dual-use strengthen international nuclear safeguards, control the spread of dual-use
technologies and expertise, and verify nuclear reductions and compliance with technologies and expertise, and verify nuclear reductions and compliance with
treaties and agreements. This program conducts reviews of nuclear export treaties and agreements. This program conducts reviews of nuclear export
applications and technology transfer authorizations. applications and technology transfer authorizations.
  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 National Technical Nuclear Forensics Research and Development (NTNF
R&D) examines and examines and evaluates nuclear materials and devices, nuclear test evaluates nuclear materials and devices, nuclear test
explosions or radiological dispersals, and post-detonation debris through nuclear explosions or radiological dispersals, and post-detonation debris through nuclear
forensics development at the national laboratories. The program includes a field forensics development at the national laboratories. The program includes a field
capability to assist the interagency response in the event of a nuclear or capability to assist the interagency response 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.
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Energy radiological incident.  The Nonproliferation Construction program supports M3 and the Surplus Plutonium Disposition Project (SPD), details 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. 1 Programs were reorganized starting with the FY2016 request, and NCT IR was previously funded under Weapons Activities. According to the FY2016 budget justification, “ T hese transfers align all NNSA funding to prevent, counter, and respond to nuclear proliferation and terrorism in one appropriation.” 2 T he $40 million in funding for NT NF was moved from the DNN R&D Nuclear Detonation Dete ction subprogram in FY2021. Congressional Research Service 1 Energy & Water Development Appropriations for Defense Nuclear Nonproliferation

Table 1. DOE Defense Nuclear Nonproliferation Appropriation, FY2018-FY2021, and FY2022 Request
($ thousands) ($ thousands)
FY2018
FY2019
FY2020
FY2021
FY2021FY2022

Enacted
Enacted
Enacted
Request
HouseEnacted Request
Material Management Material Management and
308,594 308,594
293,794 293,794
363,533 363,533
400,711 400,711
400,711
342,946 and Minimization Minimization
Global Material Security Global Material Security
390,108 390,108
407,108 407,108
442,909 442,909
400,480
508,939528,939 497,941
Nonproliferation and Nonproliferation and Arms
134,703 134,703
129,703 129,703
140,000 140,000
138,708
148,000
148,000 184,795 Arms Control Control
National Technical National Technical Nuclear
0 0
0 0
0 0
40,000 40,000
40,000
Forensics 0 Nuclear Forensics R&D R&D
Defense Nuclear Defense Nuclear
556,504 556,504
575,570 575,570
533,163 533,163
531,651
601,900601,900 672,736
Nonproliferation R&D Nonproliferation R&D
Nonproliferation Nonproliferation
335,000 335,000
220,000 220,000
299,000 299,000
148,589 148,589
148,589156,000
Construction Construction
Nuclear Nuclear Counterterrorism
282,360 282,360
319,185 319,185
372,095 372,095
377,513 377,513
377,513370,782 Counterterrorism
Legacy Contractor Legacy Contractor Pensions
40,950 40,950
28,640 28,640
13,700 13,700
14,348 14,348
14,34838,800 Pensions
Subtotal Subtotal
2,048,219 2,048,219
1,949,000 1,949,000
2,164,400 2,164,400
2, 2,031260,000 ,000
2, 2,240264,000 ,000
Use of Prior Year Use of Prior Year Balances
0 0
-25,000 -25,000
0 0
-21,000
0 Balances
Rescission Rescission of Priorof Prior Year Year
-49,000 -49,000
-19,000 -19,000
0 0
0
0
Balances Balances
Total Total
1,999,219 1,999,219
1,930,000 1,930,000
2,164,400 2,164,400
2, 2,031260,000 ,000
2, 2,240264,000 ,000
Source: Department of Energy CongressionalDepartment of Energy Congressional Budget Requests, Volume 1Budget Requests, Volume 1; H.Rept. 116-449.
FY2021. FY2022 Request
The The FY2021FY2022 request for DNN appropriations totaled $2. request for DNN appropriations totaled $2.031 billion264 bil ion, reflecting a , reflecting a 6.2% decrease
from FY20200.2% increase from FY2021-enacted levels. The budget justification says that this -enacted levels. The budget justification says that this decrease is mainly change is due to due to the
completion completion of funding for Molybdenum-99 cooperative agreements and activities to address recovery and decontamination efforts associated with a container breach and release of material in Seattle, WA.3 Decreases in the M3 and GMS accounts are to be offset by increases in the NPAC and DNN R&D accounts and use of prior year balances. The NPAS program proposes an “acceleration of a multilateral nonproliferation enrichment testing and training capability to improve current and future IAEA verification capabilities.” DNN R&D increases are “to develop arms control capabilities and vulnerability assessments, to establish an emerging and disruptive technologies initiative, to establish a nuclear forensics R&D university consortium,” and to accelerate the development of nonproliferation-related “testbeds” to identify threats. 3 See also NNSA, “As Cleanup of Contaminated Seattle Building Nears Completion, T wo Remediation Managers Discuss Lessons Learned,” December 9, 2020, https://www.energy.gov/nnsa/articles/cleanup-contaminated-seattle-building-nears-completion-two-remediation-managers. Congressional Research Service 2 Energy & Water Development Appropriations for Defense Nuclear Nonproliferation As in past years, the FY2022of funding for contractual termination” of the Mixed Oxide Fuel Fabrication Facility
(MOX) project at the Savannah River Site. Funding for that program would decrease 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 Replacement 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 molybdenum-99 production technologies in the United States that do not
use high enriched uranium (HEU), which can be used for nuclear weapons.
The National Technical Nuclear Forensics Research and Development (NTNF R&D) is a new
program in FY2021. The budget request says that the program would 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 appropriations included a provision prohibiting funds in the Defense
Nuclear Nonproliferation account from being used for certain activities and assistance in the Nuclear Nonproliferation account from being used for certain activities and assistance in the
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Energy & Water Development Appropriations for Defense Nuclear Nonproliferation

Russian Federation. Appropriations Russian Federation. Appropriations billsbil s have prohibited this since FY2015, although a waiver is have prohibited this since FY2015, although a waiver is
possible.possible.14
U.S. Plutonium Disposition
The The FY2021FY2022 budget justification requests funds related to the U.S. plutonium disposition program budget justification requests funds related to the U.S. plutonium disposition program
in the M3 Materialin the M3 Material Disposition subprogram and Nonproliferation Construction Surplus Plutonium Disposition subprogram and Nonproliferation Construction Surplus Plutonium
Disposition subprogram. The United States pledged to dispose of 34 metric tons of U.S. surplus Disposition subprogram. The United States pledged to dispose of 34 metric tons of U.S. surplus
weapons plutonium, which was weapons plutonium, which was originallyoriginal y to be converted into fuel for commercial power to be converted into fuel for commercial power
reactors.reactors.25 The U.S. facility for this purpose was to be the Mixed Oxide Fuel Fabrication Facility The U.S. facility for this purpose was to be the Mixed Oxide Fuel Fabrication Facility
(MFFF), which had been under construction at the DOE Savannah River site in South Carolina. (MFFF), which had been under construction at the DOE Savannah River site in South Carolina.
The MFFF faced sharply escalating construction and operation cost estimates, and the Obama The MFFF faced sharply escalating construction and operation cost estimates, and the Obama
Administration proposed to terminate it in FY2017. After congressional approval, in 2018 DOE Administration proposed to terminate it in FY2017. After congressional approval, in 2018 DOE
ended MFFF construction and began pursuing ended MFFF construction and began pursuing a replacementan alternative disposal method, Dilute and Dispose disposal method, Dilute and Dispose
(D&D), for this material. (D&D), for this material.
The D&D method consists of “blending plutonium with an inert mixture, packaging it for safe 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 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 request. The Nonproliferation Construction account’s proposed decrease of $150 millionmil ion in in
FY2021 FY2021 iswas due to the final steps in ending construction of the MFFF. In her testimony before the 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 House Appropriations Committee, NNSA Administrator Lisa Gordon-Hagerty said that decrease
reflectsthe decrease reflected the completion of the MOX contractual termination settlement. She said that the completion of the MOX contractual termination settlement. She said that the the
requested $148.6 requested $148.6 million mil ion would be used for the Surplus Plutonium Disposition (SPD) project, in 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 support of the D&D method. FY2021 activities would include “execution of early site preparation
and long lead procurements activities, as and long lead procurements activities, as well wel as continuing the maturation of the as continuing the maturation of the design for design for all
al major systems supporting the plutonium processing gloveboxes.”major systems supporting the plutonium processing gloveboxes.”6 The House Appropriations Committee report on the FY2021 Energy and Water Development funding bil (H.Rept. 116-449) says that it did not provide any funds for transfer of plutonium from South Carolina to Nevada and recommended “efforts to engage the interagency and international partners as appropriate on mutual y beneficial plutonium disposition protocols.” The FY2022 request says NNSA wil use prior year balances to close out MFFF activities in FY2022. The proposed appropriation would support “the completion at the Savannah River Site of the first glovebox fabrication, shipment, receipt, and fabrication of the HEPA Filter Housings and Diesel Generator, completion of site preparation activities, and final design in support of Critical Decision (CD)-2/3, as wel as continues longlead procurements for the SPD Project.” It would also add glovebox capacity “to accelerate plutonium dilution and aid in the removal of plutonium from the state of South Carolina.” 4 See the 2017 version of this report for more detailed background information. 5 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
FY2021 Appropriations
House
The House passed the FY2021 Energy and Water Development appropriations bill July 31, 2020,
as part of the second FY2021 Consolidated Appropriations Act (H.R. 7617). The House-passed
measure includes DNN appropriations of $2.24 billion, the same as recommended by the House
Appropriations Committee and an increase of $209 million (10%) over the Administration
request. The Senate has not acted on the bill.
The House Appropriations Committee report on the FY2021 Energy and Water Development
funding bill (H.Rept. 116-449) says that it does not provide any funds for transfer of plutonium
from South Carolina to Nevada and recommends “efforts to engage the interagency and
international partners as appropriate on mutually beneficial plutonium disposition protocols.”

1 See the 2017 version of this report for more detailed background information.
2 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 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 October 2016 due to what it called “hostile actions” by the United States. Both countries appear to be continuing their
plans for surplusplans for surplus plutonium disposition. Seeplutonium disposition. See CRS CRS Report R43125, Report R43125, Mixed-Oxide Fuel Fabrication Plant and Plutonium
Disposition: ManagementManagem ent and Policy Issues
, by Mark Holt and Mary Beth D. Nikitin, by Mark Holt and Mary Beth D. Nikitin . 6 A glovebox is a sealed, transparent chamber with openings in the sides where sleeves and gloves are attached. Workers can put their hands in the gloves to manipulate radioactive materials inside without becoming contaminated. Congressional Research Service 3 Energy & Water Development Appropriations for Defense Nuclear Nonproliferation FY2021 Appropriations The House passed the FY2021 Energy and Water Development appropriations bil July 31, 2020, as part of the second FY2021 Consolidated Appropriations Act (H.R. 7617). The House-passed measure included DNN appropriations of $2.24 bil ion, the same as recommended by the House Appropriations Committee and an increase of $209 mil ion (10%) over the Administration request. The Senate Appropriations Committee majority draft bil for FY2021 energy and water development appropriations al ocated $2.095 bil ion for Defense Nuclear Nonproliferation, to include $30 mil ion for the uranium reserve program.7 The Senate Appropriations Committee did not act on the bil . FY2021 Energy and Water Development funding was enacted in Division D of the Consolidated Appropriations Act, 2021 (P.L. 116-260), signed by the President on December 27, 2020. The measure included $2.26 bil ion for Defense Nuclear Nonproliferation. Author Information Mary Beth D. Nikitin Specialist in Nonproliferation .
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Energy & Water Development Appropriations for Defense Nuclear Nonproliferation

The committee report also recommends
 not less than $5 million for “research and engagement on applications of nuclear
security, safeguards and export controls for advanced nuclear reactor designs”;
 $21.5 million for the Green Border Security Initiative within NSDD and
“recognizes the importance of improving the security of border crossings to
prevent nuclear smuggling and accelerating partnerships, particularly within
Eastern Europe”;
 $25 million within the Domestic Radiological Security account for the Cesium
Irradiator Replacement Program and up to $10 million to address a 2019
container breach in Seattle, WA, and notes “the importance of accelerating the
removal of cesium devices to permanently reduce the risk of terrorist use of a
radiological dispersal device in the U.S.”; and
 $60 million within Material Management and Minimization for “a new
competitively awarded funding opportunity to expedite the establishment of a
stable domestic source of Mo-99” and requests a report to the committee
detailing costs and plans to establish a domestic capability to produce Mo-99
without the use of HEU.
Senate
The Senate Appropriations Committee majority draft bill for FY2021 energy and water
development appropriations allocates $2.095 billion for Defense Nuclear Nonproliferation, to
include $30 million for the uranium reserve program.3




Author Information

Mary Beth D. Nikitin

Specialist in Nonproliferation


3 See CRS In Focus IF11505, Uranium Reserve Program Proposal: Policy Implications, by Lance N. Larson.
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Energy & Water Development Appropriations for Defense Nuclear Nonproliferation



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7 See CRS In Focus IF11505, Uranium Reserve Program Proposal: Policy Implications, by Lance N. Larson. Congressional Research Service Congressional Research Service
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