REPATRIATING SPENT ELK RIVER FUEL FROM ITALY -

UNCLAS ROME 003592

SIPDIS


DOE FOR JOSEPH MC MONIGLE AND FOR OFFICE FOR GLOBAL THREAT
REDUCTION

E.O. 12958: N/A


TAGS: ENRG PREL KNNP KSCA IT
SUBJECT: REPATRIATING SPENT ELK RIVER FUEL FROM ITALY -
SECRETARY ABRAHAM'S RESPONSE TO PRIME MINISTER'S OFFICE

SIPDIS

Refs: A) Rome 3471 B) 03 Rome 2847 C) Milliken-Sellen
8/31/04 email


1. This is an action request. Please see paragraph 13.

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SUMMARY
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2. This report is further to ref A report of Secretary
Abraham's call on Prime Ministry Under Secretary Letta
August 25. In that call, U/S Letta asked Secretary
Abraham's personal help to permit Italy to ship spent
nuclear fuel to the DOE Savannah River Center for storage.
(The fuel is currently stored in Italy, but originated from
the Elk River Reactor under a 1959 U.S.-Italy cooperative
research program.) Secretary Abraham agreed to help U/S
Letta. The Embassy wishes to encourage a timely response to
U/S Letta, since he is 1) key to getting the Megaports
program initiated in Italy; 2) one of the best and senior-
most contacts for this embassy and someone to whom we turn
for help on issues critical to the U.S. interest; and 3)
someone who has seldom asked for our help. Please see
paragraph 13 below for action requested. End summary.

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INTRODUCTION
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3. In the context of Secretary Abraham's August 25 visit to
Rome and his appeal to Italy for support on the U.S. Global
Threat Reduction Initiative (GTRI),U/S Letta asked for
Secretary Abraham's personal help in repatriating to the

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United States, spent nuclear fuel now stored in Trisaia in
southern Italy (Ref A). Secretary Abraham responded that
this type of below-weapons-grade fuel was just the kind of
material that the GRTI was attempting to secure better, and
that he would have his technical staff review the request
and respond very soon to U/S Letta's request.


4. Shortly thereafter, Ivo Tripputi, from SOGIN Nuclear
Plants Dismantlement Division, contacted Embassy staff to
underscore the interest of SOGIN, the firm with
responsibility for the fuel in question, in repatriating the
fuel to the U.S. Tripputi confirmed that SOGIN would
finance the transfer of the spent fuel to the United States.
Note: SOGIN is a state-owned company since it belongs to
the Ministry of Economy and Finance but is overseen by the
Productive Activities Ministry, which is responsible for
energy issues. SOGIN is in charge of the Italian
decommissioning program, which includes five nuclear power
plants and four fuel cycle facilities. End note.

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BACKGROUND
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Bilateral Nuclear Fuel Cooperation
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5. Reportedly, after the Elk River Reactor (ERR) shut down
in January 1968, all fuel was removed from the reactor and
shipped from the site from 1968-1970. Eighty-four
assemblies were sent to the Trisaia Research Center (ITREC),
in southern Italy, in three shipments. The transfer was
further to a 1959 agreement between the U.S. Atomic Energy
Commission (USAEC) and Italy's CNRN (then CNEN, now ENEA,
the Italian National Agency for New Technologies, Energy and
Environment). The fuel was to be used in examining the
technical/economic feasibility of the uranium-thorium
nuclear fuel cycle. When the research program was
terminated in the seventies, only twenty assemblies had been
actually reprocessed at ITREC. Since then, the remaining 64
ERR fuel assemblies have been stored in the ITREC plant pool
in stainless steel capsules.


6. The remaining 64 have the following configuration:
-- 20 elements are contained in latest design capsules (type
II);
-- 16 previously dismantled elements have been reassembled
in special 5x5 quivers, then placed in type II capsules; and
-- 28 elements have been contained since the date of receipt
in first design capsules (type I).


7. Note: According to SOGIN, there is precedent for
storing Elk River spent fuel at the DOE Savannah River Site.
The GOI understands there are already 190 assemblies of Elk
River fuel stored in 38 bundles, in the L-Basin, now being


conditioned and awaiting transfer to Yucca Mountain. End
note.

Italy's Nuclear Waste Storage Problem
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8. Italy has been bedeviled with finding a safe,
politically acceptable solution for nuclear waste disposal
for many years (ref B). Some nuclear waste is a by-product
of research, industrial, or medical activities; but most
resulted from the dismantling of nuclear power stations. In
November 2003, the GOI identified the area of Scansano
Ionico, in the region of Basilicata, as a possible waste
site. Unfortunately, however, the GOI did not consult with
local authorities beforehand; and the community raised
vigorous objections over their perceived threat to this well-
endowed center of tourism and organic agriculture. The
community's and local governments' strong political
objections forced the GOI to back down, and to ask Nuclear
Waste Commissioner General Carlo Jean, also President of
SOGIN, to identify an alternative site.


9. According to the GOI, it is not possible to
reprocess/condition the spent fuel in Italy or Europe, writ
large. The GOI sees as its options either transferring the
64 assemblies in question either to the DOE Savannah River
Center or exporting them temporarily to Russia. The GOI
prefers the first solution; and should the USG agree to
accept the spent fuel, Italy would provide full funding for
transport to the United States.

Waste Container Issue Makes a U.S. Response to Accept the
Fuel Urgent.
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10. Until now, SOGIN has stored the 64 elements still in
Italy in a pool at ITREC. However, the pool structure is
old; and SOGIN must find another solution very soon. Any
solution would require transport from the present site, and
the decision on where the spent fuel goes dictates the type
of transport/storage container. Because of the long lead-
time required to construct a customized storage container,
SOGIN is considering signing an extremely expensive contract
with a French firm for two custom-designed, EU-standard,
transport/dry-storage containers for the 64 elements. This
decision on the container would cover the very unlikely
solution of either further storage in Italy (politically
impossible) or transport to Russia (also difficult
politically). However, should the United States be able to
accept the spent fuel, SOGIN would need to know

-- U.S. standards for transport/storage containers and how
SOGIN could arrange to have those containers made by a U.S.
manufacturer;
-- Alternatively, if U.S. standards for shipment/storage of
this spent fuel are the same as EU standards whether SOGIN
should continue to pursue the expensive option of EU-
standards containers;
-- Alternatively, once again, if the United States would
store the spent fuel in a pool, in which case, SOGIN would
not sign the expensive contract with the French firm and
begin talks with U.S. authorities over transport/storage
container specifications for pool storage. (Please see
action requested below.)

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PROTOCOL AND LEGAL REQUIREMENTS
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11. Once DOE staff has examined enough of the particulars
of the request from the GOI to decide how to respond to the
GOI request, Embassy would suggest that Secretary Abraham
transmit a letter to U/S Letta 1) confirming the USG intent
to find a timely solution in repatriating the last remaining
64 elements of spent fuel still in Italy; and 2) inviting
the GOI to begin work with DOE on a written agreement of
terms and conditions for removal of the spent fuel to the
United States, including title and identification of the
entity responsible for custody of the material during
transfer. Embassy would suggest DOE cable the text of such
a letter, which the Embassy would be pleased to convey to
U/S Letta in the Office of the Prime Minister.


12. As a help to DOE, we are providing below the names and
titles of major players here in Italy as we decide whether
the United States can accept the spent fuel in question.


Under Secretary (Prime Minister's Office) Gianni Letta -
arguably, the second most powerful person in Italy and key
to us on many other important issues, including Megaports.

General Carlo Jean - the Italian Nuclear Materials Safety
Commissioner and President of SOGIN, the state-owned firm in
charge of the Italian decommissioning program.

Professor Sergio Garribba - DG for Energy at the Ministry of
Productive Activities.

Engineer Bruno Agricola - DG for Environmental Protection at
the Ministry of Environment.

Engineer Giorgio Cesari - Director General of APAT (the
Agency for Environmental Protection and Technical Services).

Engineer Giancarlo Bolognini - CEO of SOGIN.

Engineer Ivo Tripputi - Chief of SOGIN Division for Nuclear
Plant Dismantlement, and the technical point of contact for
solving this issue.

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Action Requested
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13. With the knowledge that Italy has asked us to move very
quickly to help them make the best and most economical
decision on transport/storage containers, please
-- provide guidance soonest whether DOE can accept the last
64 elements of spent fuel now in Italy for storage in the
United States;
-- indicate how the material will be stored (dry storage or
in pools);
-- provide a contact point SOGIN could use to begin
discussions on the type of transport/storage container
required; and
-- transmit the text of a letter for U/S Letta from
Secretary Abraham by cable indicating whether the USG will

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be able to accept the spent fuel for storage and inviting
the GOI to begin negotiations on an agreement to
transfer/store the spent fuel. End action requested.


14. Embassy appreciates Department of Energy assistance.
Sembler


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2004ROME03592 - Classification: UNCLASSIFIED