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### Viewing cable 09ROME815, ITALIAN PARLIAMENT GIVES GREEN LIGHT FOR NUCLEAR

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Reference ID | Created | Released | Classification | Origin
--- | --- | --- | --- | ---
09ROME815 | 2009-07-16 12:12 | 2011-03-22 11:11 | CONFIDENTIAL//NOFORN | Embassy Rome

`

    VZCZCXRO9022
    PP RUEHRN
    DE RUEHRO #0815/01 1971227
    ZNY CCCCC ZZH
    P 161227Z JUL 09
    FM AMEMBASSY ROME
    TO RUEHC/SECSTATE WASHDC PRIORITY 2396
    INFO RUEHSS/OECD POSTS COLLECTIVE PRIORITY
    RUEHFL/AMCONSUL FLORENCE PRIORITY 3718
    RUEHMIL/AMCONSUL MILAN PRIORITY 0148
    RUEHNP/AMCONSUL NAPLES PRIORITY 3922
    RUCPDOC/DEPT OF COMMERCE WASHDC PRIORITY
    RHEBAAA/DEPT OF ENERGY WASHDC PRIORITY
    RUEHBS/USEU BRUSSELS PRIORITY 4847

` `

    C O N F I D E N T I A L SECTION 01 OF 02 ROME 000815

    NOFORN
    SIPDIS

    DOE FOR THE OFFICE OF POLICY AND INTERNATIONAL AFFAIRS, AND
    THE OFFICE OF NUCLEAR ENERGY; DOC FOR SARAH LOPP

    E.O. 12958: DECL: 07/16/2019
    TAGS: ECON EINV ENRG IT

    SUBJECT: ITALIAN PARLIAMENT GIVES GREEN LIGHT FOR NUCLEAR
    ENERGY RELAUNCH

    REF: A. A) ROME 283
         ¶B. B) ROME 207
         ¶C. C) 08 ROME 1577
         ¶D. D) 08 ROME 1191

    ROME 00000815  001.2 OF 002

    Classified By: A/DCM Barbara A. Leaf for reasons 1.4 b and d.

    ¶1. (C/NF) Summary: The Italian Parliament approved nuclear
    energy legislation on July 9th that gives the GOI the
    green-light to re-launch Italy's civil nuclear energy
    program. The legislation calls for the GOI to come up within
    six months with revamped regulation to govern the nuclear
    sector, identification of the sites where the new plants will
    be built, definition of accepted technology, and a plan on
    how to handle the nuclear waste. A new nuclear safety agency
    will also be created.  Despite the short amount of time for
    such a big task, industry experts remain cautiously
    optimistic that such a deadline will help to focus government
    efforts towards delivering the key regulatory and
    institutional areas needed for a nuclear energy re-launch.
    Continued USG engagement is crucial for ensuring a level
    playing field for U.S.-based nuclear energy companies
    interested in entering the Italian market. Economic
    Development Minister Scajola plans to visit the U.S. from
    September 27 to October 3rd to meet with DOE Secretary Chu
    (and possibly DOC Secretary Locke). This would be an
    excellent opportunity to engage with Italy on U.S.-Italian
    nuclear energy cooperation both on the research and
    industrial side. End Summary.

    NUCLEAR TECHNOLOGY, SITES, WASTE DISPOSAL AND NUCLEAR SAFETY
    AGENCY
    - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
    - - -

    ¶2. (C/NF) On July 9, the Italian Parliament approved nuclear
    energy legislation that provides the GOI the long-awaited
    green light to re-launch Italy's civilian nuclear energy
    program. The bill calls for the GOI to introduce within six
    months the necessary regulations that will govern the
    building of nuclear power plants in Italy, identify the sites
    where the new nuclear plants will be built, and present a
    plan on how to deal with the nuclear radioactive waste. The
    bill also calls for the reconstitution of a new Italian
    nuclear safety agency from the existing one (ISPRA), and
    authorizes the Interministerial Economic Committee (CIPE) to
    give the final approval over the nuclear technology to be
    adopted, as well as the consortia that will build and manage
    the nuclear power plants. The approved bill will be published
    in about two weeks after the expected pro-forma approval by
    President Napolitano. (Background Note. Until the late 1980s,
    Italy was one of the leading European countries in nuclear
    energy. However, public concerns over nuclear energy plant's
    safety following the 1987 Chernobyl nuclear accident led to
    passage of a referendum to decommission the four existing
    nuclear power plants.  Soon after coming to power in the
    Spring of 2008, the new Berlusconi Government announced its
    plans to bring back nuclear energy to Italy. Current GOI
    plans call for the building of up to 10 nuclear plants to
    supply Italy with about 25 percent of its total electricity
    needs. End note)

    ¶3. (C/NF) While recognizing that six months is quite short
    for the GOI to put together the crucial underpinnings of a
    nuclear sector, industry contacts have told us that the GOI
    may meet its targets.  According to Francesco Mazzuca,
    President of Italy's leading nuclear energy service company,
    Ansaldo Nucleare, the Ministry of Economic Development has
    already been working for several months on the draft
    regulations for the approved bill.  In terms of site
    selection, Mazzuca said that a practical approach will be for
    the GOI to present as a first batch the four sites of the
    decommissioned nuclear plants that are known to be the most
    readily available for new nuclear plants construction.
    Mazzuca added that other greenfield sites could later be
    identified. Though putting together a long-term plan on how
    to handle the nuclear waste will be more challenging for the
    GOI, Mazzuca suggested that shipping abroad the nuclear waste
    for reprocessing may be a medium-term solution that the GOI
    could propose. In this regard, Mazzuca explained the only
    realistic options are for Italy to send its nuclear waste for

    ROME 00000815  002.2 OF 002

    reprocessing to either the U.S., France or Russia (Note.
    Under a 2006 agreement, Italy already ships to France for
    reprocessing some of the nuclear waste material of its former
    nuclear plants, with the un-reprocessed material due to be
    shipped back to Italy by 2020. End note).  With regard to the
    new nuclear safety agency, Mazzuca explained that serious
    political discussions are already underway within the GOI on
    choosing its five person board. Mazzuca said that who the GOI
    selects will determine the strength and clout of the new
    agency. He expressed hope that the current president of
    Italy's nuclear decommissioning parastatal, SOGIN, Professor
    Maurizio Cumo, would be chosen as one of the chairpersons due
    to his long experience in the nuclear field. However, Mazzuca
    told us it was not clear at this point who might be tapped to
    lead the new agency. (Note: Cumo favors U.S. nuclear
    technology and has told Post that the Westinghouse AP-1000
    design is the most suitable nuclear technology for Italy. End
    note).

    ¶4. (C/NF)  Mazzuca reiterated that U.S. nuclear companies
    still have a chance to compete for contracts.  Mazzuca said
    that American nuclear plant designs remain the most
    competitive to meet Italian needs due to their smaller
    ""footprint"" and advanced technology. Mazzuca advised greater
    engagement by U.S. nuclear companies with the GOI now that
    the nuclear legislation has been passed. He added that USG
    engagement at the highest levels of the GOI is important in
    order to counterbalance continued French government lobbying
    efforts on behalf of its national companies. Mazzuca stated
    that the French government is even increasing its lobbying
    efforts by adding a second official with a nuclear portfolio
    at the French Embassy in Rome.  Despite the ENEL-EDF
    agreement to build four Areva-design nuclear plants in Italy
    (see Ref A), Mazzuca assessed that the ideal situation for
    Italy is to adopt two nuclear technologies, with American
    technology being the other option.

    NEXT STEPS
    - - - - -

    ¶5. (C/NF) Comment: Continued USG engagement, especially at a
    high level, is crucial to ensure that U.S. nuclear technology
    is given a ""green light"" to be one of the approved
    technologies for Italy's nuclear restart. A major upcoming
    opportunity for persuading the Italian energy and political
    establishment to sign on to U.S. technology is the visit of
    Economic Development Minister Scajola to the U.S. in late
    September (September 27 to October 3rd are the tentative
    dates). Scajola plans to meet DOE Secretary Chu and possibly
    with DOC Secretary Locke.  Minister Scajola would also like
    to tour a U.S. nuclear energy facility. We understand that
    both Westinghouse and GE have invited Scajola to visit their
    facilities. The Italian Embassy in Washington is already
    working on this visit, and the Minister's advisors have asked
    for USG assistance in ensuring the trip's success. This is an
    important moment to engage the GOI and showcase U.S. nuclear
    technology as well as opportunities for U.S.- Italian nuclear
    energy cooperation.

    ¶6. (C/NF) Minister Scajola's trip could also be an optimal
    occasion to sign the pending nuclear energy cooperation
    agreement that his Ministry has been negotiating with DOE.
    The issues of nuclear power plant financing and investment
    guarantees remain important areas for the GOI to address. We
    are told by our Italian government interlocutors that USG
    technical assistance in this area would be well received. End
    Comment.
    DIBBLE
    "

`