The Department of Energy's (DOE'Energy and Water Development June 10, 2021 Appropriations for Defense Nuclear Mary Beth D. Nikitin Nonproliferation: In Brief Specialist in Nonproliferation 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 thenuclear nonproliferation activities. NNSA’s 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 FY2021bil . The FY2022 request for DNN appropriations was $2.031 billion26 bil ion. The proposal would includeincluded 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.

The Defense Nuclear Nonproliferation (DNN) programs were reorganized starting with the FY2016 request. There are two main mission areas under the DNN appropriation budget justification, the increase 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 Nuclear Nonproliferation account for certain activities and assistance in the Russian Federation. Appropriations bil s have prohibited this since FY2015. Congressional Research Service link to page 4 link to page 5 link to page 6 link to page 6 link to page 5 link to page 5 link to page 7 Energy & Water Development Appropriations for Defense Nuclear Nonproliferation Contents Budget Structure ............................................................................................................ 1 FY2022 Request ............................................................................................................. 2 U.S. Plutonium Disposition ......................................................................................... 3 FY2021 Appropriations.................................................................................................... 4 Tables Table 1. DOE Defense Nuclear Nonproliferation Appropriation, FY2018-FY2021, and FY2022 Request .......................................................................................................... 2 Contacts Author Information ......................................................................................................... 4 Congressional Research Service Energy & Water Development Appropriations for Defense Nuclear Nonproliferation Budget Structure The Defense Nuclear Nonproliferation (DNN) appropriation is organized under two main mission areas: the Defense Nuclear Nonproliferation Program and the Nuclear Counterterrorism and Incident Response Program (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:  : 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."

• 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 (GMS) 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 (NPAC) 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. This program conducts reviews of nuclear export 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 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 interagencyinteragency response in the event of a nuclear or 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) FY2018 FY2019 FY2020 FY2021 FY2022 Enacted Enacted Enacted Enacted Request Material Management 308,594 293,794 363,533 400,711 342,946 and Minimization Global Material Security 390,108 407,108 442,909 528,939 497,941 Nonproliferation and 134,703 129,703 140,000 148,000 184,795 Arms Control National Technical 0 0 0 40,000 0 Nuclear Forensics R&D Defense Nuclear 556,504 575,570 533,163 601,900 672,736 Nonproliferation R&D Nonproliferation 335,000 220,000 299,000 148,589 156,000 Construction Nuclear 282,360 319,185 372,095 377,513 370,782 Counterterrorism Legacy Contractor 40,950 28,640 13,700 14,348 38,800 Pensions Subtotal 2,048,219 1,949,000 2,164,400 2,260,000 2,264,000 Use of Prior Year 0 -25,000 0 Balances Rescission of Prior Year -49,000 -19,000 0 Balances Total 1,999,219 1,930,000 2,164,400 2,260,000 2,264,000 Source: Department of Energy Congressional 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).

FY2021 Request

The FY2021Budget Requests, Volume 1. FY2022 Request The FY2022 request for DNN appropriations totaled $2.031 billion264 bil ion, reflecting a 6.2% decrease from FY20200.2% increase from FY2021-enacted levels. The budget justification says that this decrease is mainly due to the "change is due to 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 was decreased by 50% (-$150 million).

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

, although a waiver is possible.4 U.S. Plutonium Disposition

The FY2021FY2022 budget justification requests funds related to the U.S. plutonium disposition program in the M3 Material Disposition subprogram and Nonproliferation Construction Surplus Plutonium Disposition subprogram. The United States pledged to dispose of 34 metric tons of U.S. surplus weapons plutonium, which was originallyoriginal y to be converted into fuel for commercial power reactors.² 5 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. 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 ended MFFF construction and began pursuing a replacementan alternative 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 millionmil ion in FY2021 iswas 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 the decrease reflectsreflected the completion of the MOX contractual termination settlement. She said that the requested $148.6 million mil ion 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 wel as continuing the maturation of the design for all al major systems supporting the plutonium processing gloveboxes."