Archive for February, 2021

Systemic corruption in the American nuclear industry

February 18, 2021

Big money, nuclear subsidies, and systemic corruption, Bulletin of the Atomic Scientists, By Cassandra JefferyM. V. Ramana | February 12, 2021

The “largest bribery, money-laundering scheme ever perpetrated against the people and the state of Ohio” came to light during an unexpected press conference in July 2020 in Columbus. Speaking haltingly and carefully, US Attorney for the Southern District of Ohio David DeVillers announced “the arrest of Larry Householder, Speaker of the House of the state of Ohio and four other defendants for racketeering. The conspiracy was to pass and maintain a $1.5 billion bailout in return for $61 million in dark money.”

Unravelling an intricate web of alleged illegal activities used to launder money, DeVillers broke down the complicated modus operandi of “Company A.” With a gentle smile on his face, he said, “everyone in this room knows who Company A is, but I will not be mentioning the name of Company A because of our regulations and rules. They have not, and no one from that company has as of yet, been charged”.

Company A is FirstEnergy Solutions, a fact most Ohians had been aware of long before the July 2020 press conference. FirstEnergy, now called Energy Harbour, is one of Ohio’s largest utility corporations. For years, the firm lobbied to get a subsidy to continue operating its unprofitable nuclear plants and maintain its revenue flow. When lobbying efforts failed to produce subsidies, it resorted to bribery to gain legislative support for House Bill 6, 2019 legislation that forces state consumers to pay into something called “the Ohio Clean Air Fund.” The green language is a smoke screen for the real purpose: to siphon nearly $150 million annually to FirstEnergy to keep its Perry and Davis-Besse nuclear power plants and two coal-fired power plants operating, while simultaneously gutting Ohio’s renewable energy standards. Also gone were the state’s energy efficiency programs, which had saved consumers and corporations millions of dollars. When citizens tried to organize a referendum to repeal the bill, FirstEnergy indulged in various dirty tactics to thwart this democratic opposition.

Ohio is not alone in its nuclear energy corruption. Also in July 2020, Commonwealth Edison (ComEd), a subsidiary of Exelon, was charged with bribery to “Public Official A” in Illinois. Though not named, the filing makes it clear that “Public Official A” is Illinois House Speaker Michael Madigan, who has denied wrongdoing. ComEd has agreed to pay a $200 million fine to resolve this case. Exelon also finds itself at the centre of another ongoing investigation by the United States Securities and Exchange Commission. The focus of the investigation is reportedly Anne Pramaggiore, a former Exelon CEO who stepped down from the company and from his post chair of the Federal Reserve Bank of Chicago. As in Ohio, the corruption charges relate to lobbying for state subsidies and special treatment of nuclear power plants.

Three other states—New Jersey, Connecticut, and New York—have implemented similar subsidies (although, to date, no allegations of wrongdoing related to them have been made public). Changes in the economics of electricity markets are threatening the profitability of nuclear power plants, a shifting reality driving a demand for these financial bailouts. As the New Jersey-based energy company Public Service Enterprise Group (PSEG) explained in October 2020, across the nation “nuclear plants continue to struggle economically to survive. Since 2018, three nuclear plants have closed in the eastern US, all for economic reasons, and the impact has had a ripple effect.”

Changing economics of electricity generation. These “economic reasons” have to do with an ongoing massive transformation of the energy sector. Over the last decade, the cost of renewables like solar and wind have dropped substantially; these renewables can generate electricity at much lower costs than fossil fuels and, especially, nuclear power. In the United States, unsubsidized wind power costs fell by 71 percent between 2009 and 2020, whereas unsubsidized utility scale solar energy costs declined by 90 percent during the same period. Nuclear energy costs increased by 33 percent between 2009 and 2020. The International Energy Agency has dubbed solar energy “the new king of electricity” and foresees it dominating future deployment in the electricity sector for decades.

The major beneficiaries of the subsidies for nuclear plants are large corporations: PSEG in New Jersey and Dominion in Connecticut, besides Exelon and FirstEnergy. These, and other electrical utility companies in the United States, have historically invested primarily in nuclear reactors and fossil fuel plants. Thanks to the changing economics of electricity, these companies are finding it harder to maintain their profits while operating the older power plants that are now more expensive as sources of electricity.  

These companies and various associated organizations have engaged in extensive lobbying and large-scale propaganda campaigns to get governments pass legislation that makes consumers pay more for the electricity they use. In that sense, what has resulted would be better described as corporate welfare than as subsidies. The subsidies have improved these companies’ financial situation, which in turn contributes to their clout in state and national policy making and their ability to fund advocacy efforts—and even to pay politicians tidy sums of money. The larger significance of the political power these large utilities have amassed is their ability to block transition to a fully renewable and more environmentally sustainable energy system.

Financial subsidies. Subsidies take different forms in different states. In New York and Illinois, utility companies are required to purchase a specific amount of zero-emission credits from authorized nuclear generating stations, all of which are owned and operated by Exelon Corporation. Purchasing contracts in both states will be in effect for 10 to 12 years, and utility companies are mandated to tack on the cost to consumer bills. Over in New Jersey, “each electric public utility” is required to purchase “Nuclear Diversity Certificates” from nuclear power plants, with consumers paying for these programs through higher utility bills.

The deal that Dominion Energy struck in Connecticut was different, taking the form of a contract that requires the state’s two electric distribution utilities to purchase about 50 percent of the  electricity output of Dominion’s Millstone nuclear generating plant for 10 years. Millstone houses two operational nuclear reactors. In all of these cases, the annual financial benefits to these large corporations run in to the hundreds of millions of dollars.

The modus operandi was developed by multiple stakeholders and publicly released in 2016 in the form of a toolkit by the American Nuclear Society (ANS). Produced by a special committee consisting of senior nuclear officials, the toolkit outlined “a variety of policy pathways to support the current nuclear fleet and prevent early retirement.” The states mentioned above have implemented polices that incorporate one or more of the strategies outlined in the ANS toolkit, including amalgamations of low-carbon portfolio standards and mandated purchase of nuclear energy. The toolkit even went so far as to suggest that state government entities could acquire nuclear power plants or suspend collecting taxes, but these suggestions have not been implemented so far.

Building political support. While the American Nuclear Society led the policy-development charge, the Nuclear Energy Institute (NEI)—the nuclear industry’s lobbying arm—reinforced the advocacy message on the ground. The NEI’s 2017 report outlined specific plans and efforts instituted around the same time as many of these nuclear bailouts were pushed through state legislatures. Substantial resources were funnelled toward lobbying efforts aimed at key political and public actors. NEI’s deliberate intention, as outlined in the 2017 report, was to build political support to “avoid placing additional financial burden on US nuclear plants.”

Large-scale media dissemination, educational campaigns, relationship-building with regulatory bodies, think tanks, and policy institutions, and direct political lobbying are some of the tactics outlined in the report. Not all of the tactics aimed at subsidies; some were aimed at lowering expenses for nuclear companies by finding ways to lessen their environmental obligations. For example, the NEI managed to terminate annual fees charged to nuclear generating plants for hazardous material cleanup, which made taxpayers liable for these costs. The NEI took full credit for this shift: “After targeting the House and Senate Appropriations Committees, NEI successfully prevented reimplementation of a $200 million annual fee placed on the industry.”

The NEI also tried to influence the appointment of officials to oversight bodies, including the Nuclear Regulatory Commission (NRC), declaring that it “shared names of potential candidates with the Trump administration and worked with member companies to urge Congress to communicate with the White House the need to nominate and confirm commissioners.” The NRC is the agency tasked with overseeing safety, and in 2017, the NEI proudly announced that it had “worked with the House Appropriations Committee to again reduce the NRC’s budget.”

The institute took credit for engaging “across the Ohio state government to support enactment of zero-emission nuclear credit legislation,” for convening “meetings with the governor’s staff on the value of nuclear energy,” and for testifying “at legislative hearings on the issue.” Not surprisingly, NEI’s efforts were supported by large cash payments allegedly provided by FirstEnergy.

The power game. Many energy companies are actively involved in local or state-level lobbying. In recent years, Illinois has been a site of intense lobbying by Exelon and its subsidiary, Commonwealth Edison (ComEd), primarily to get more and more subsidies from the state. “At least two dozen former Illinois state lawmakers have lobbied on behalf of ComEd or Exelon since 2000,” according to Illinois Policy, an independent public policy organization. Exelon’s hold on Illinois decision-making has been characterized by David Kraft of the Nuclear Energy Information Service as “nuclear blackmail,” a result of politics that “forced environmentalists wanting to see new legislation pass that would expand renewables, into a reluctant and grudging alliance with Exelon, but on Exelon’s terms.”

The process works as follows. Every so often, Exelon or ComEd would declare that one or more of their nuclear plants are no longer profitable and threaten to shut the plants down within a year. The threats have tended to be successful; lobbyists can argue, with some truth on their side, that a shutdown will lead to job losses and a cut in tax revenue, also leaving Illinois with an energy shortage that may increase reliance on carbon-based sources.

The same strategy was used successfully in New YorkConnecticut, and New Jersey, where state officials described the process in colorful terms like “highway robbery” and “ransom.”  The nuclear sector has extensively resorted to this kind of power politics, even using it in regard to nuclear plants that eventually shut down, such as the Vermont Yankee Nuclear Power Station.

Money begets money. The effects of enacting laws that favor nuclear energy firms are clear from the financial status of these corporations. Exelon share prices increased from $34.63 on April 1, 2017 to a high of $50.95 exactly two years later, while Dominion’s stock price grew from $64.19 on May 1, 2018 to $83.70, as of November 6, 2020. Similar increases have been recorded by FirstEnergy and PSEG.

Apart from stock owners, the other major beneficiaries from the utility business are, of course, executives in these companies. CEOs like Dominion’s Thomas Farrell and Exelon’s Christopher Crane are among the highest paid executives in the electrical generation and utility industry………..

Dealing with corruption, legal and illegal. The crimes that people like Larry Householder and Michael Madigan are accused of committing are shameful; they are, however, just examples of the apparent systemic corruption that seems to permeate the nuclear industry.

While the actions taken against these individuals have captured headlines, the picture painted in the media still misses the mark on less egregious, everyday forms of political action. Lobbying by deep-pocketed industries and other efforts to capture regulators are pernicious but often go unremarked, in part because under the rules that govern politics in the United States, such actions are often legal. Addressing these problems with the urgency they require will necessarily involve confronting the economic and political system that privileges profits and capital over people and the environment.https://thebulletin.org/2021/02/big-money-nuclear-subsidies-and-systemic-corruption/

Busting the propaganda that the nuclear industry wants to reduce carbon emissions

February 18, 2021

Big money, nuclear subsidies, and systemic corruption, Bulletin of the Atomic Scientists, By Cassandra JefferyM. V. Ramana | February 12, 2021  ”………..Material interests and policy interests.

The most common argument used by these companies and those who support nuclear subsidies is the need to fight climate change. There are two problems with this argument.

First, it is based on the false idea that nuclear power, if shut down, will necessarily be replaced by fossil fuel plants. A June 2016 decision by Pacific Gas and Electric (PG&E) demonstrates the invalidity of this assumption. PG&E will close the last two nuclear power plants in California (the Diablo Canyon units) by 2024 and 2025, replacing the lost electrical capacity “with a cost-effective, greenhouse gas free portfolio of energy efficiency, renewables and energy storage.” This move to renewables is more cost-effective today than it was in 2016 because of declining costs of renewables and energy storage. As Matthew McKinzie of the Natural Resources Defense Council argued at that time, the decision “shows that given sufficient time to prepare, retiring nuclear capacity can transition smoothly to a mix of energy efficiency measures; clean, renewable resources; and energy storage without any role for fossil fuels – an outcome that can be optimal for the environment, the market, and the reliability of the electric grid.” At a larger scale, Germany has shown that it is possible to retire nuclear plants and reduce emissions at the same time.

The second problem is the assumption that corporations owning nuclear plants are primarily interested in rapidly reducing emissions. Many utilities have large fossil fuel investments— investments that suggest a shutdown won’t be happening anytime soon. This suggestion seems especially true with natural gas plants. Although utilities often describe natural gas as clean (for example, Exelon describes its fleet as powered by “clean burning natural gas”), the climate implications of continued natural gas use are substantial. Exelon, the company with the most nuclear plants in the country, also owns and operates, along with its subsidiaries, 11 oil-fired power plants, five dual-fuel (natural gas and oil-powered) power stations, and 10 natural gas-based power plants throughout North America. In addition to its four nuclear power plants, Dominion owns 17 power plants fueled by natural gas and 14 power plants fueled by coal or oil. The company’s estimate of carbon dioxide emissions from its power plants is around 40 million metric tons in 2018, roughly the same level as in 2012. Likewise, PSEG owns just two nuclear power plants, but the company owns or has a stake in 10 fossil fuel generating plants with one more natural gas powered plant under construction.

With such large stakes in fossil fuel-based power plants, it is clear that these utilities are not about to switch immediately to renewables—or even to nuclear power—and give up on years and years of future profits that they and their shareholders are hoping for. In all of the states that offered nuclear subsidies, and elsewhere, the utilities have tried to hold back the deployment of renewables in more or less obvious ways. US utilities are not alone. Studies show that electric utilities around the world have “hindered the transition of the global electricity sector towards renewables, which has to date mostly relied on non-utility actors (such as independent power producers) for expanding the use of renewables.”

Rather than adapting to the necessity of building up renewables, these utilities resort to tactics that have been used in the past to justify nuclear power plant construction. As former Nuclear Regulatory Commission member Peter Bradford listed at the beginning of the so-called nuclear renaissance, these include “subsidy, tax breaks, licensing shortcuts, guaranteed purchases with risks borne by customers, political muscle, ballyhoo, and pointing to other countries (once the Soviet Union, now China) to indicate that the US is ‘falling behind.’”…. https://thebulletin.org/2021/02/big-money-nuclear-subsidies-and-systemic-corruption/

The merging of the economic and the political power of big nuclear corporations

February 18, 2021

Big money, nuclear subsidies, and systemic corruption, Bulletin of the Atomic Scientists, By Cassandra JefferyM. V. Ramana | February 12, 2021,  ”………… the long-term impact of legislation that favors nuclear energy firms involves the great economic and political power that these large utilities possess. To better understand the basis of the economic power of these corporations, we analyzed financial data from electric utilities listed on the New York Stock Exchange (NYSE) between 1970 and 2019 on the standard Compustat database.

The first trend that is evident is one of increasing market concentration. From the 1970s through to the mid-1990s, there were roughly 80 to 85 companies listed in this sector on the NYSE. By 2000, that number had dropped to 56. The reason was a series of mergers and acquisitions through which large companies absorbed smaller companies. For example, Commonweath Edison became part of Unicom in 1994. Unicom and the Philadelphia Electric Company merged in 2000 to form Exelon. Similar mergers and acquisitions have continued, and by 2019 there were only 36 utility companies operating in the United States.

Measured through their market capitalization values, these 36 corporations are not equal. By and large, the corporations with the largest market cap values are the ones that own nuclear plants. Exelon is a good example, owning 17 of the 94 nuclear units that are operating in the United States as of November 2020. In 2019, Exelon’s average market capitalization was $44.3 billion. But Exelon is by no means the largest utility. Nextera Energy ($118 billion), Dominion ($69 billion), Duke ($67 billion), and American Electric ($47 billion) dominate the industry in terms of market capitalization. All of these five companies had a higher market capitalization in 2019 than the largest utility that did not own nuclear plants: Sempra Energy ($44.1 bn).

Over the last six years, when there have been no mergers or acquisitions among these companies, 11 out of the 14 companies that own nuclear assets have consistently held market capitalization values well above the median (based on 36 companies in all). Two of the remaining three hover near the median value, sometimes higher, sometimes lower. (The one remaining utility, El Paso, was recently bought out by JP Morgan, and will no longer be a publicly traded company.) On the whole, companies with nuclear plants have recorded larger market capitalization values than the median of 22 utilities that don’t own nuclear assets.

The legislative means used to take money away from electricity consumers and bail out economically failing nuclear plants owned by these large corporations helps further their market power, as illustrated by Dominion’s value rising from $49.5 billion in 2018 to $69.4 billion in 2019. While it is well known that wealthy corporations have a lot of political power, it seems from these examples that the converse might also be true: The political power enjoyed by these large corporations is at the root of their economic power. Indeed, as political economists Jonathan Nitzan and Shimshon Bichler have argued at length, the standard economic concept of capital symbolizes “organized power writ large,” challenging the conventional division between politics and economics. The various bills passed in state legislatures offer a political assurance to investors that revenues for these utilities are assured for the foreseeable future, which naturally translates into higher stock prices and market capitalizations.………https://thebulletin.org/2021/02/big-money-nuclear-subsidies-and-systemic-corruption/

Even a pro nuclear enthusiast admits that Small Nuclear Reactors cause toxic radioactive wastes

February 18, 2021

13 Feb 21 I was quite fascinated to note a paragraph in a long nuclear  propaganda article, (by Stikeman Elliott, in Mondaq) yesterday, in which this, hitherto rather hidden problem, gets a mention.

Of course, this pro nuclear writer is not really worried all that much about the actual problem.

Oh no –  his concern is about the public’s perception of it –  that public perception might hamper the develoment of the nuclear lobby’s newest gimmick. Can’t have that!

”…….efforts need to be made to address the perceived risks so as to establish confidence in the ability of SMRs to operate safely while proving to be a viable source of low-carbon energy. 

While SMRs produce less nuclear waste than traditional reactors, the issue of radioactive waste still exists. Nuclear waste needs to be safely stored and transported to secure facilities. SMRs have often been proposed as a solution for electricity generation in remote areas, but this proves problematic from a waste perspective as any nuclear waste would need to be transported over long distances. There is currently no permanent nuclear waste storage site in Canada……”

American media and politicians, including Biden, in the grip of the war profiteers

February 18, 2021

Who Are the Ultimate War Profiteers? A U.S. Air Force Veteran Removes the Veil, Covert Action Magazine By Christian Sorensen,  February 10, 2021  “………….The most well-known industry pressure comes in the form of lobbying both political parties and funding their congressional campaigns (with extra focus on members of pertinent committees, such as Armed Services, Intelligence, Appropriations, and Foreign Relations)

This produces tangible results. As Steven Semler of the non-corporate Security Policy Reform Institute calculated, Democratic votes on the National Defense Authorization Act

correlate strongly with the campaign cash members accepted from the war industry. On average, House Democrats who voted for the NDAA accepted four times the amount of war industry cash as those who voted against it. In the Senate, Democrats who cast supporting votes took in six times as much industry cash.

Warmonger-In-Chief

The Executive Branch is not exempt. Rapacious financiers—including hedge fund chiefs and venture capitalists—top the list of donors to the Biden Administration, though dark money groups prevent a full understanding of the overall campaign finance picture. Between July and September at least 67 billionaires and their spouses made contributions of more than $100,000 to committees supporting Joe Biden and the Democratic Party, according to records filed with the Federal Election Commission.

Biden’s campaign received over $9 million from Donald Sussman, CEO of Palmora Partners, a multi-billion dollar hedge fund, which has more than 260,000 shares in Raytheon, a preeminent weapons manufacturer and supplier of weapons to Saudi Arabia, which recently won a $100 million contract for Afghan Air Force training

Another of Biden’s top donors, Jim Simons, who gave over $7 million, founded Renaissance Capital, which owns 1.2 million shares in Raytheon worth over $75 million, and 130,000 shares in Lockheed Martin worth $50 million.

Big Tech is positioned prominently among donors to the Biden inauguration celebration. Biden has been clear on the campaign trail that he does not intend to cut the military budget, even going so far as stating, “I’ve met with a number of my advisors and some have suggested in certain areas the budget is going to have to be increased.” Biden’s advisors are part and parcel of the military-industrial-congressional complex. Cozying up to wealthy donors, Biden infamously assured them that “nothing would fundamentally change” in a Biden presidency. https://covertactionmagazine.com/2021/02/10/who-are-the-ultimate-war-profiteers-a-u-s-air-force-veteran-removes-the-veil/

Corporate Media Kool-aid

Corporate media prevent the public from understanding the nature of the problem. A handful of business interests owns media outlets in the United States. Profit drives corporate media. U.S. corporate media (e.g. CNN, MSNBC, FoxNews) share the same business model: air what attracts the highest ratings in order to get more advertising revenue.

Corporate media air info-tainment, designed not to inform or foster critical thinking. Informing the public is not a priority. Maintaining the existing economic order is.

To the extent that corporate media air any information at all, the information reflects the opinions of the ruling class and the dogma of Corporate America.

Politically conditioning the U.S. public, corporate media never blame the military-industrial-congressional complex or capitalism for any of the problems in the world. Aiming for high ratings and lucrative advertising revenue, corporate media self-censor and taper the spectrum of acceptable foreign policy debate. War corporations purchase advertisements on corporate “news” shows to further confine the debate. Corporate pundits and newscasters do not speak out against advertisers.

Corporate media hire career militants (e.g. former CIA Director John Brennan, MSNBC; former CIA Deputy Director Mike Morrell, CBS News; retired General Jack Keane, FoxNews) who further confine the debate. Retired generals and admirals regularly contribute to all forms of corporate media, often without disclosing existing ties to war corporations or financial investments in war.

The Smith-Mundt Modernization Act of 2012 allowed government to increase its propaganda in corporate media. Drawing funding from the wealthy donor class and large corporate interests, National Public Radio is similarly confined. NPR’s new CEO as of September 2019 is John Lansing, who recently led U.S. propaganda at the U.S. Agency for Global Media.
Other industry pressure comes in the form of funding and running pressure groups [e.g. National Defense Industrial Association (NDIA), Aerospace Industries Association (AIA), Association of the United States Army (AUSA)] to dominate the Pentagon, administer arms fairs, and push favorable policies; funding think tanks to keep the narrative neoliberal and pro-war; recruiting retired generals and admirals (e.g. Dunford at Lockheed Martin, Mattis at General Dynamics, Winnefeld at Raytheon) to leverage their knowledge for financial gain; and flooding the Pentagon’s civilian offices with corporate executives (e.g., Esper and then Austin, Secretary of Defense; Lord, Undersecretary for Acquisition and Sustainment; McCarthy, Secretary of the Army).  …………

Christian Sorensen is an Air Force veteran and author of the new book entitled Understanding the War Industry. See CAM’s review of the book: Wars R Us: A Review of Christian Sorensen’s New Book.  https://covertactionmagazine.com/2021/02/10/who-are-the-ultimate-war-profiteers-a-u-s-air-force-veteran-removes-the-veil/

Wall Street: the Ultimate War Profiteers

February 18, 2021

Wall Street plays the foundational role in the war industry by outright owning war corporations……

Big Finance sits at the top of the war industry by purchasing most shares of war corporations and by owning war corporations. Insatiable demand for profit places immense structural pressure on the Pentagon and Capitol Hill for sky-high U.S. military and intelligence budgets, broad deployment of troops overseas, and the opening up of governmental jobs to corporations. …………

Wars must be created and expanded, and military bases, through which to route goods and services, must be established and entrenched to satisfy investors. Notwithstanding, ending the wars first requires addressing the embedded profit motive, otherwise it is business as usual.

Who Are the Ultimate War Profiteers? A U.S. Air Force Veteran Removes the Veil, Covert Action Magazine By  Christian Sorensen February 10, 2021  

While war corporations, or so-called “defense contractors,” make billions in profits, Wall Street is the ultimate beneficiary of today’s nonstop wars. The prosaic nature of war profiteering—far from the work of a shadowy cabal—is precisely why the collusion is so destructive and should be outlawed.

The U.S. ruling class deploys the military for three main reasons: (1) to forcibly open up countries to foreign investment, (2) to ensure the free flow of natural resources from the global south into the hands of multinational corporations, and (3) because war is profitable. The third of these reasons, the profitability of war, is often lacking detail in analyses of U.S. imperialism: The financial industry, including investment banks and private equity firms, is an insatiable force seeking profit via military activity.

The war industry is composed of corporations that sell goods and services to the U.S. government and allied capitalist regimes around the world. Investment banks and asset management firms hold most shares of every major public war corporation.

The best-known financial firms holding the stock of war corporations include: Vanguard Group, BlackRock, State Street, JPMorgan Chase, Wells Fargo, and Wellington Management

Consider Parsons, a corporation that sells goods and services pertaining to construction, command and control, espionage, and day-to-day military operations. Parsons’ initial public offering in May 2019, valued at roughly $3 billion, earned it an industry Corporate Growth Award. The top holders of Parsons stock are investment banks and asset management firms—including the familiar Vanguard Group, BlackRock, and State Street.

Cyber Wars and Intelligence Go Mainstream as Emerging Corporate Frontiers

New business sectors of war are created and then flooded. For example, the provision of “cyber” was virtually nonexistent in U.S. military contracting until roughly four years ago. A war industry push to militarize IT infrastructure has yielded a bonanza in cyber contracts. Today, “cyber” goods and services are sold stand-alone or as additions to previous contracts.

Nearly every major war corporation sells cyber goods and services.

The top public war corporations include Lockheed Martin, Raytheon Technologies, Boeing, General Dynamics, Northrop Grumman, L3Harris, Textron, SAIC, Booz Allen Hamilton, Leidos, CACI, Honeywell, PAE, Accenture, KBRWyle, Amentum, Jacobs, and AECOM.

They all sell cyber. The main exception is Huntington Ingalls, a major shipbuilder, which does not sell stand-alone cyber goods, although it does mandate cybersecurity as part of its supply chain. The top private war corporations—Sierra Nevada Corp. and General Atomics, run by the billionaire Ozmens and Blue Brothers, respectively—also sell cyber goods and services.

This single business sector of war, cyber, is worth billions annually. Claims of Chinese and Russian cyber hacks, fabricated or hyped by war industry think tanks and media affiliates, fuel government purchases of cyber goods and services. For its part, the U.S. government—first to use devastating new weaponry, from atomic weapons to cyber weapons, and first to attack Moscow with cyber weapons—positions its aggression as purely defensive.

In November 2018, Parsons—whose leadership is packed with bankers, career war profiteers, military and intelligence retirees, and a coal tycoon—was contracted for cyberspace operations mission planning in Centerville, Virginia. In May 2019, Parsons was contracted with nine other corporations to expand the cyberspace backbone of the Naval Information Warfare Center Pacific of San Diego, California, a military unit whose mandate is to dominate all forms of space (cyberspace, airspace, and Earth’s orbit).

In January 2020, Parsons and other corporations were contracted by the same unit to further develop, oversee, and employ broad cyber technology integral to that mandate, from the continental United States, to Guam, Japan, Australia, and Singapore, to Bahrain, Djibouti, and Italy. This is just one example of one corporation. Corporate America blankets U.S. military cyber operations worldwide.

As recently as the early 1990s, it was considered sacrilege for corporate employees (“contractors”) to be involved in intelligence matters. Not anymore. U.S. intelligence (both civilian and military) is corporatized.

Consider the Defense Intelligence Agency. DIA was established in the 1960s to consolidate the military’s disparate intelligence activities. It did not consolidate much, as the individual military branches continued to run distinct military-intelligence operations.

Since the 1960s, DIA has expanded dramatically in size. Corporations carrying out DIA’s activities during the most recent fiscal year included work in its Science & Technology Directorate (five years, $990,000,000), its National Media Exploitation Center, and its Missile & Space Intelligence Center (MSIC).

Parsons carries out modeling and simulation and analysis within DIA’s MSIC. Corporations also run planning and analysis of DIA’s workforce, sell technical support to DIA, conduct employee vetting and background investigations, and work on technology transfer analysis and assessment.

Corporations even develop and run software that aids “in the identification of intelligence requirements, management of priorities, planning and production of intelligence products, enterprise data analytics, communication and other associated processes,” offering further opportunities for profit-hungry entities to steer the espionage ship. Corporations (e.g., AccentureBooz Allen HamiltonCACIGeneral DynamicsLeidosL3HarrisManTechPAE and SAIC, whose stocks are owned mostly by financial firms) functionally run U.S. military-intelligence, the operations of which ultimately enrich the U.S. ruling class.

Wall Street: the Ultimate War Profiteers

Wall Street plays the foundational role in the war industry by outright owning war corporations. Consider PAE, a subtle, potent corporation, which operates such diverse business sectors of war as vehicle maintenance, base operations, military construction, and military training. Gores Holdings III acquired PAE from Platinum Equity in early 2020. Gores then adopted the name PAE and took PAE public. PAE has since acquired the corporations CENTRA and Metis Solutions, which further increase PAE’s operations carrying out former governmental tasks within the U.S. military establishment and espionage agencies.

Again, all military and intelligence activity is up for grabs, even the Atlantic Undersea Test and Evaluation Center (AUTEC), a military range for testing and evaluating the war industry’s technology (e.g., anti-submarine weapons, sonar tracking, and communications). Some have nicknamed AUTEC the “Navy’s Area 51” because of the testing of high-tech unconventional weapons. [Area 51 is a testing range in Nevada where classified programs are worked on and experimental aircraft are flown.]

The Navy established AUTEC on Andros Island in the Bahamas to take advantage of the deep oceanic trench that runs along the east coast of the island. PAE is traditionally the go-to corporation that operates and maintains AUTEC, though a newly formed corporation known as Amentum recently took over some of these functions.

The private equity firm Lindsay Goldberg owns Amentum, which was created in 2020 when AECOM, a massive engineering and project management firm, sold its management services business. Amentum now directs this business. Overseas, this management services business has recently transported equipment, cargo, and personnel around Europe; run logistics for prepositioned matériel in Germany, Kuwait, and Qatar; supported drone operations in the Middle East; and repaired support equipment and helped with maintenance at Navy sites in Comalapa, El Salvador. These operations now all belong to Amentum.
In November 2020, Amentum made another move: It acquired DynCorp, a corporation reported to have a deep history of mercenary activity in Latin America and the Middle East.

According to contract announcements, DynCorp has recently overseen war reserve matériel in the U.S., Kuwait, Oman, Qatar, and the UAE; maintained military aircraft around the world, including in Honduras, Germany, Afghanistan, Iraq, and Kuwait; sold aircraft maintenance to Sweden and Saudi Arabia; and run substantial worldwide training and equipping of forces, emergency construction, and logistics.

Big Finance wheels and deals war corporations, viewing bases, troops, and warzones as numbers through which to profit.

Another prominent financial player is Veritas Capital, which once owned DynCorp and now owns such corporations as Alion and Peraton, the latter of which is about to acquire Northrop Grumman’s IT business. Peraton’s recent sales to the U.S. military establishment have included: portable systems to foil radio-controlled explosive devices that sundry groups use to attack Western military forces that invade or occupy their countries; work on undersea drones; work to ensure nuclear missiles reenter Earth’s atmosphere properly; IT work that “directly supports American national security interests on the continent of Africa,” according to the contracting announcement; cyber activities for the Air Force Research Lab; and commercial satellite communications for Central Command. All is fair in profit and war.

Big Finance sits at the top of the war industry by purchasing most shares of war corporations and by owning war corporations. Insatiable demand for profit places immense structural pressure on the Pentagon and Capitol Hill for sky-high U.S. military and intelligence budgets, broad deployment of troops overseas, and the opening up of governmental jobs to corporations. …………

Wars must be created and expanded, and military bases, through which to route goods and services, must be established and entrenched to satisfy investors. Notwithstanding, ending the wars first requires addressing the embedded profit motive, otherwise it is business as usual.

Christian Sorensen is an Air Force veteran and author of the new book entitled Understanding the War Industry. See CAM’s review of the book: Wars R Us: A Review of Christian Sorensen’s New Book.  https://covertactionmagazine.com/2021/02/10/who-are-the-ultimate-war-profiteers-a-u-s-air-force-veteran-removes-the-veil/

 

America’s ”fleet” of dangerously embrittled nuclear reactors

February 18, 2021
– 1 Feb 2021

Of all the daunting tasks Joe Biden faces, especially vital is the inspection of dangerously embrittled atomic reactors still operating in the United States.

A meltdown at any one of them would threaten the health and safety of millions of people while causing major impact to an already struggling economy. The COVID-19 pandemic would complicate and add to the disaster. A nuclear power plant catastrophe would severely threaten accomplishments Biden is hoping to achieve in his presidency.

The problem of embrittlement is on the top of the list of nuclear power concerns. The “average age”—length of operation—of nuclear power plants in the U.S., the federal government’s Energy information Agency, reported in 2019 was 38 years.
Now, in 2021, the “average age” of nuclear power plants in the U.S. is 40 years—the length of time originally seen when nuclear power began in the U.S. for how long plants could operate before embrittlement set in.

That’s why the operating licenses originally issued for the plants were limited to 40 years.

Here’s how Arnold “Arnie” Gundersen, a nuclear engineer with more than 44 years of experience in the nuclear industry, who became a whistleblower and is now chief engineer at Fairewinds Associates, explains embrittlement: “When exposed to radiation, metal becomes embrittled and eventually can crack like glass. The longer the radiation exposure, the worse the embrittlement becomes.”

A nuclear reactor is just like a pressure cooker and is a pot designed to hold the radioactive contents of the atomic chain reaction in the nuclear core,” continues Gundersen, whose experience includes being a licensed Critical Facility Reactor Operator. “And metals in reactors are exposed to radiation every day a plant operates”

“If the reactor is embrittled and cracks,” says Gundersen, “it’s ‘game over’ as all the radiation can spew out into the atmosphere.Diablo Canyon [a twin-reactor facility in California] is the worst, the most embrittled nuclear power facility in the U.S., but there are plenty of others that also could crack. Starting with Diablo, every reactor in the U.S. should be checked to determine they are too embrittled to continue to safely operate.”

Metals inside a nuclear power plant are bombarded with radiation, notes Gundersen. The steel used in reactor pressure vessels—which contain the super-hot nuclear cores—is not immune.

Every U.S. reactor has an Emergency Core Cooling System and a Core Spray System to flood the super-hot core in the event of a loss-of-coolant accident.

Embrittled metal would shatter when hit with that cold water.

The ensuing explosion could then blow apart the containment structure—as happened at the Chernobyl and Fukushima nuclear power plants—morphing into a radioactive plume moving into the atmosphere and be carried by the winds, dropping deadly fall-out wherever it goes.

This apocalyptic outcome was barely missed in Pennsylvania where, starting at 4 a.m. on March 28, 1979, fuel inside the Three Mile Island Unit Two nuclear power plant began to melt.

Its Emergency Core Cooling System was activated. But only the year before—in 1978—did the plant receive a license to operate and begin operating.

Had TMI, like so many of U.S. nuclear power plants now, been decades old and its metal pressure vessel embrittled and had shattered—a far greater disaster would have occurred. The entire northeastern U.S. could have been blanketed with deadly radioactivity

The “fleet” of old, decrepit nuclear power plants in the U.S.—with embrittled metal components—must be inspected. And with embrittlement they must be shut down.

Biden must jump into the situation—for the sake of American lives, for the sake of the nation’s future.

Nuclear power in the U.S. is under the jurisdiction of the Nuclear Regulatory Commission, or NRC. That acronym NRC should really stand for Nuclear Rubberstamp Commission. Whatever the nuclear industry wants, the NRC says yes to.

As the result of the series of globally infamous catastrophic nuclear power plant accidents—at Three Mile Island, Chernobyl and Fukushima—and the availability of safe, green, cost-effective, clean renewable energy, led by solar and wind, coupled with increasing energy efficiency, the nuclear industry is in its death throes.

Only two nuclear power plants are being built now in the U.S., Vogtle 3 and 4 in Georgia. At nearly $30 billion for the pair, they’re hugely over budget—and their construction costs are still rising. In fact, virtually all operating atomic reactors are producing electricity at much higher base costs than solar and wind.

The NRC is currently seeking to try to bail out the nuclear industry—to keep it going—by allowing nuclear power plants to operate for 100 years.

In recent years it agreed to let nuclear power plants to run for 60 years and then it upped that to 80 years.

On January 21 the Nuclear Rubberstamp Commission held a “public meeting” on its plan to now extend operating licenses for U.S. nuclear power plants and allow them to run for 100 years. Speaker after speaker protested this scheme.

“It’s time to stop this whole nuke con job,” testified Erica Gray nuclear issues chair of the Virginia Sierra Club, at the meeting. There is “no solution” to dealing with nuclear waste, she said. It is “unethical to continue to make the most toxic waste known to mankind.” And renewable energy” with solar and wind “can power the world.”

“Our position… is a resounding no,” declared Paul Gunter, director of the Reactor Oversight Project of the national organization Beyond Nuclear, for letting nuclear power plants run for 100 years.

Speakers cited the greatly increased likelihood of accidents if nuclear plants were allowed to run for a century.

Biden must step in and order the inspection for embrittlement of U.S. nuclear power plants.

The “fleet” of old, decrepit nuclear power plants in the U.S.—with embrittled metal components—must be inspected. And with embrittlement and other likely age-induced problems, they must be shut down.

Biden must act to prevent what would constitute nuclear suicide in the United States.

On January 27, Biden announced a climate change agenda transitioning the U.S. towards renewable energy. But taking action against fossil fuel is not enough. Nuclear power plants are also engines of global warming. The “nuclear fuel chain” which includes uranium mining, milling and fuel enrichment is carbon intensive. Nuclear plants themselves emit Carbon-14, a radioactive form of carbon.

Biden must take the lead. NOW!

Harvey Wasserman wrote the books Solartopia! Our Green-Powered Earth and The Peoples Spiral of US History. He helped coin the phrase “No Nukes.” He co-convenes the Grassroots Emergency Election Protection Coalition at www.electionprotection2024.org  Karl Grossman is the author of Cover Up: What You Are Not Supposed to Know About Nuclear Power and Power Crazy. He the host of the nationally-aired TV program Enviro Close-Up with Karl Grossman (www.envirovideo.com)

Unsafe plan for abandoning nuclear reactors onsite, and developing Small Nuclear Reactors

February 18, 2021

“IAEA guidance that entombment is not considered an acceptable strategy for planned decommissioning of existing [nuclear power plants] and future nuclear facilities.”

Rapacious nuclear company Holtec: its dodgy record on safety, finance and lack of transparency

February 18, 2021

New Mexico’s nuclear rush.  A massive nuclear waste site near Carlsbad is seemingly on a fast track. Can the company behind it be trusted? Searchlight, By Sammy Feldblum and Tovah Strong|February 3, 2021

-” ………………There really is no fixed date on a repository,” said Rod McCullum of the Nuclear Energy Institute, an industry trade group. In the absence of a permanent storage place, the conversation has turned to interim storage sites that could save companies money until a final destination is established.Enter Holtec. The company was formed in the 1980s to design spent-fuel storage technology for nuclear plants. By the early 2000s, Holtec had secured contracts to provide specialized dry storage casks for a never-built interim facility on the Skull Valley Goshute reservation in Utah and the Tennessee Valley Authority’s Sequoyah Nuclear and Browns Ferry Nuclear plants. By 2018, Holtec operated branches in seven countries, including Ukraine and Spain.

In 2019, Holtec began acquiring decommissioned nuclear power plants. (Such plants can bring large profits, including whatever decommissioning funds are left over after they’ve been cleaned up.) Holtec purchased New Jersey’s Oyster Creek Generating Station; Massachusetts’ Pilgrim Nuclear Power Station; New York’s Indian Point Energy Center; and Michigan’s Palisades Nuclear Generating Station, as well as spent fuel from the former Big Rock Point Nuclear Power Plant.

But the company’s record was not without concern. Holtec has received an estimated nine violation notices since 2001 for failing to follow NRC quality assurance procedures, including rules meant to ensure that the company’s storage casks — the kind it would be using in New Mexico — consistently met safety standards.

The most recent violation occurred in 2018 when Holtec modified its casks without notifying the NRC, as mandated. The change was only discovered when workers preparing to load a cask at San Onofre Generating Station in California noticed a four-inch pin, meant to hold the fuel basket, loose at the bottom of the cask — an obvious manufacturing flaw. When asked for comment on the incidents, a Holtec spokesman told Searchlight that the company is an industry leader in quality assurance.

Holtec has run into other problems as well. An investigation conducted in 2010 by the Tennessee Valley Authority into suspected overbilling revealed that the company had bribed a TVA employee in order to secure a contract. In 2007, the employee pleaded guilty to concealing more than $54,000 received from Holtec. In the wake of the investigation, the TVA ordered the company to pay a $2 million fine, open its operations to outside monitors and face a largely symbolic 60-day ban from doing federal business — the first debarment in TVA history.

In 2014, Holtec failed to mention that debarment on tax credit application forms. The misrepresentation initially went unnoticed, allowing the company to receive $260 million in tax credits from the New Jersey Economic Development Authority (NJEDA), a story first reported by ProPublica and WNYC.

In 2019, the NJEDA announced it would investigate Holtec’s use of tax credits, prompting the company to sue the agency for withholding money. (The NJEDA declined to answer questions about the investigation’s status, saying it did not comment on matters related to pending litigation.)

Holtec’s use of offshore banking has also come under scrutiny. According to leaked records called the Paradise Papers, Holtec has operated at least one shell corporation in Bermuda between 2005 and 2007. The records, which were obtained by the German daily newspaper Süddeutsche Zeitung and shared with the International Consortium of Investigative Journalists, listed Krishna P. Singh II as an officer: He is the son of Holtec CEO Krishna P. Singh. Several of the CEO’s other family members were also listed as officers, as was Niraj Chaudhary, director of the executive committee for Holtec Asia. An additional offshore company in Bermuda that operated during the same time period, Southampton Technologies Ltd., included nearly identical officers and was listed at the same address.

Holtec did not respond to questions from Searchlight about why the accounts were used and whether the company still keeps bank accounts in tax havens. The leaked records don’t reveal this information, either. But tax havens like Bermuda can allow companies to avoid paying taxes.

“There’s nothing inherently nefarious about [the accounts],” said Jack Blum, a national authority on international tax evasion and money laundering whose anti-corruption work contributed to the establishment of the U.S. Foreign Corrupt Practices Act. However, Blum told Searchlight, Holtec “is a closely held company that has a history of being controlled by its founders, and wherever it goes, it wants to keep its finances as secret as it can and its taxes as low as it can.”

In general, Blum said: “Companies that are dealing in nuclear materials are in a world where there’s very little transparency.” 

Holtec did not respond to questions from Searchlight about why the accounts were used and whether the company still keeps bank accounts in tax havens.  ……. https://searchlightnm.org/new-mexicos-nuclear-rush/

Universities in collusion with nuclear industry

February 18, 2021

U.S. universities have continued to build connections to the U.S. nuclear weapons complex. Although students and faculty have opposed university participation in nuclear weapons research and development at various points in the last 70 years, such participation continues.

 November 15, 2020 by beyondnuclearinternational  https://wordpress.com/read/feeds/2663585/posts/3150281214   An ICAN report

Universities across the United States are identified in this report for activities ranging from directly managing laboratories that design nuclear weapons to recruiting and training the next generation of nuclear weapons scientists. Much of universities’ nuclear weapons work is kept secret from students and faculty by classified research policies and undisclosed contracts with the Defense Department and the Energy Department. The following is the executive summary from ICAN’s report: Schools of Mass Destruction, with some changes made for timeliness.

Over the next ten years, the Congressional Budget Office estimates U.S. taxpayers will pay nearly $500 billion to maintain and modernize their country’s nuclear weapons arsenal, or almost $100,000 per minute. A separate estimate brings the total over the next 30 years to an estimated $1.7 trillion. In a July 2019 report, National Nuclear Security Administrator Lisa Gordon-Haggerty wrote, “The nuclear security enterprise is at its busiest since the demands of the Cold War era.”

In addition to large amounts of funding, enacting these upgrades requires significant amounts of scientific, technical and human capital. To a large extent, the U.S. government and its contractors have turned to the nation’s universities to provide this capital.

Over the next ten years, the Congressional Budget Office estimates U.S. taxpayers will pay nearly $500 billion to maintain and modernize their country’s nuclear weapons arsenal, or almost $100,000 per minute. A separate estimate brings the total over the next 30 years to an estimated $1.7 trillion. In a July 2019 report, National Nuclear Security Administrator Lisa Gordon-Haggerty wrote, “The nuclear security enterprise is at its busiest since the demands of the Cold War era.”

Despite these debates, U.S. universities have continued to build connections to the U.S. nuclear weapons complex. Although students and faculty have opposed university participation in nuclear weapons research and development at various points in the last 70 years, such participation continues.

Universities involve themselves in the nuclear weapons complex through the four channels listed below. In return for this engagement, universities receive funding, access to research facilities, and specific career opportunities for students.

1) Direct Management

A handful of universities directly manage nuclear weapons related activities on behalf of the federal government, retaining contracts worth billions of dollars per year collectively. These include the University of California, Texas A&M University, Johns Hopkins University, the Massachusetts Institute of Technology, and the University of Rochester.

2) Institutional Partnerships

Many of the National Nuclear Security Administration’s (NNSA) sites advertise collaborative agreements with local and national universities. These formal agreements allow the institutions to cooperate on research and share personnel and expertise. They can also provide university researchers access to funding and advanced facilities in the NNSA laboratories. The report highlights more than 30 such agreements with schools in 18 states.

3) Research Programs and Partnerships

In addition to formal institutional partnerships, numerous connections exist between universities and the nuclear weapons complex at the research project level. In a report delivered to Congress in July 2019, the NNSA highlights that more than $65 million in grants were delivered to academic institutions in the last year to support stockpile stewardship. When including grants and subcontracts from the NNSA labs as well, the total amount of funding to universities for research may be higher than $150 million per year.

4) Workforce Development Programs

Former Department of Energy Secretary Rick Perry has written that finding “the next generation workforce of world-class scientists, engineers and technicians is a major priority.” Through university partnerships, vocational training programs and research fellowships, the NNSA creates employment pipelines for the development of its future workforce.

A primary goal of this report is to facilitate a shared understanding of university connections to nuclear weapons research and development. A common factual basis will help communities of university faculty, students and administrations engage in robust internal debates and take action. Universities would not willingly participate today in the production of chemical and biological weapons; for the same humanitarian reasons, no university should seek an association with the other category of weapons of mass destruction: nuclear weapons.

While American universities have played a key role in the development and continuation of nuclear weapons, they can now join U.S. cities and states that have rejected U.S. nuclear weapons and called on the federal government to support nuclear reductions and the Treaty on the Prohibition of Nuclear Weapons. In light of the research presented,  this report offers the following recommendations to universities:

Recommendations

• Provide greater transparency into connections with the nuclear weapons complex;

• Stop directly managing nuclear weapons production sites and dissolve research contracts solely related to nuclear weapons production;

• For contracts with dual-purpose research applications, demand greater transparency and create specific processes for ethical review of this research;

• Advocate for reinvestment of weapons activities funding to non-proliferation and environmental remediation efforts; and

• Join cities and state legislatures in urging the federal government to support the 2017 Treaty on the Prohibition of Nuclear Weapons and reverse course on nuclear arms control backsliding.

See the full list of universities.

The above is the Executive Summary of ICAN’s report on US Universities. Read the full report. Beyond Nuclear is a member of ICAN.

In addition to large amounts of funding, enacting these upgrades requires significant amounts of scientific, technical and human capital. To a large extent, the U.S. government and its contractors have turned to the nation’s universities to provide this capital.

At the same time, the United States is shirking its previous commitments to nuclear arms control and reducing nuclear risks despite its obligation under Article VI of the Nuclear Non-Proliferation Treaty to pursue good-faith measures towards nuclear disarmament.

In August 2019, the United States officially withdrew from the landmark 1987 Intermediate-Range Nuclear Forces Treaty, testing a treaty-prohibited missile shortly thereafter. The Trump Administration’s 2018 Nuclear Posture Review expanded the circumstances under which the United States would consider the first use of nuclear weapons and called for the development of two new sea-based low-yield nuclear weapon systems.

Internationally, many member states of the United Nations have recognized the devastating humanitarian and environmental impacts of nuclear weapons: debating, adopting, signing and now ratifying the 2017 Treaty on the Prohibition of Nuclear Weapons.