Energy Bill passes House
HR 6, a comprehensive energy policy measure, was passed by the House of Representatives today by a vote of 249-183. The bill includes provisions that would authorize billions of dollars for programs and incentives aimed at increasing production of electricity generation and fossil fuels, energy conservation and renewable energy resources. The bill also would provide avenues for energy producers to have expedited procedures for permits and licenses for transmission lines, power plants and pipelines.
On the nuclear front, the measure would extend the Price Anderson Act, which limits liability for nuclear power plant accidents and requires nuclear plant operators to purchase insurance policies, through 2025. It would raise a plant operator's maximum liability from $63 million to $95.8 million, but would cap the payments at $15 million a year.
The measure includes a number of provisions for the security of commercial nuclear reactors, including ones that would: require the White House and the Nuclear Regulatory Commission (NRC) to assess potential terrorist threats to reactors; authorize the federal government to perform background checks on employees of nuclear facilities; direct the NRC to consult with the Homeland Security Department before issuing a license; and permit the commission to allow its employees and the employees of certain contractors and subcontractors engaged in the protection of nuclear facilities to carry firearms, even if it conflicted with state law.
The bill would increase the penalties for individuals who tampered with nuclear fuel, production facilities or waste storage treatment or disposal facilities, to $1 million or life imprisonment without the possibility of parole. The measure would prohibit the federal government from exporting nuclear materials or equipment to any country the State Department considered a state sponsor of terrorism, although the president could waive the provision in the interest of national security.
The bill would establish conditions for the sale of uranium and would authorize the export of highly enriched uranium for medical isotope production to Canada, Belgium, France, Germany, and the Netherlands. The Democrats led a heated debate on this point with an amendment by Rep. Udall. The amendment, however, was defeated.
The bill also would prohibit the U.S. government from exporting nuclear materials or equipment to any country listed by the State Department as engaged in state sponsorship of terrorist activities, although the president could waive this provision. HR 6 would authorize $1.1 billion over five years for the planning and construction of a "cogeneration" nuclear reactor that also would produce hydrogen to power fuel cells for motor vehicles. The legislation would authorize $1.3 billion over 10 years through 2015 for the development of advanced nuclear reactor technologies. The measure would direct the Nuclear Regulatory Commission to establish five projects in geographically diverse areas that would demonstrate the commercial production of hydrogen using nuclear technology. The bill also would establish an advanced hydrogen cogeneration reactor at the site of the Idaho National Laboratory, near Idaho Falls, Idaho.
White House and the Senate
The Senate has been a graveyard in the past for the energy legislation that President Bush has sought since taking office in 2001. This time it appears Congress is drawing closer to agreeing on a bill that can draw enough bipartisan support to overcome a filibuster. While the House is moving essentially the same bill that failed in the 108th Congress, Senate leaders say they must write legislation that will attract enough bipartisan support for passage this year. The Senate Energy and Natural Resources Committee is planning to markup its version next month.
With two potentially different bills there is a high chance of collision in conference where Congress will try to produce a measure that can win enough votes to survive in the Senate while maintaining support in the House. Still, Congressional leaders predict the Senate and House will come to terms in early summer and the bill will pass both chambers by August.
In the last six weeks, President Bush has been pressuring Congress aggressively to pass the energy legislation as the country has faced rising gas and oil prices. In a speech to the Hispanic Chamber of Commerce on Wednesday, he stressed to Congress that the bill must be completed before August 1. He said the legislation should support Artic drilling, clean coal and hydrogen technology, renewable fuels and new nuclear power plants and power lines. The White House asserts that the final bill should cost no more than $6.7 billion over 10 years, however some House estimates have the bill at $10-$20 billion.
Possible Delays in Passage During Conference
Congress acknowledged that the real work will come after both chambers pass their own energy bills and try to reconcile differences in conference. Among the issues that could scuttle a compromise is whether to shield makers of the clean-fuel additive methyl tertiary butyl ether (MTBE) from liability in contamination suits. The House bill includes liability protection, which many in Congress oppose. MTBE liability held up energy legislation in the last Congress and threatens to stall the bill once again. The House bill includes language protecting MTBE makers from liability that key senators have said they will not accept. With insistence from the White House, leaders have indicated they will attempt to negotiate a bicameral compromise.
Republicans wanted a quick House passage of an omnibus energy bill, however they ran into turbulence during debate today over the MTBE issue as Democrats won a procedural battle that could force a vote and perhaps lengthy debate on the most contentious provision in the legislation. Rep. Lois Capps succeeded in introducing an amendment to remove from the bill the liability waiver for companies threatened by water-contamination lawsuits over MTBE. Although Republicans had previously blocked such amendments, her new proposal was in order because the Rules Committee did not specifically protect the bill from amendments regarding the 1995 Unfunded Mandate Reform Act. After a lengthy debate, however, amendment did not have enough bipartisan support to pass.
Another issue that has tripped up past energy bills in the Senate is a proposal to open Alaska's Arctic National Wildlife Refuge (ANWR) to oil and gas drilling. The House Resources Committee included the ANWR measure in the bill, but leaders see the budget resolution as a better channel for approving ANWR drilling.
Attempts to increase federal fuel efficiency standards and continue the moratorium against oil and gas exploration in the Arctic National Wildlife Refuge were defeated by the House Wednesday night as it worked on comprehensive energy legislation. The attempt to strike from the bill language that would permit oil exploration in ANWR was defeated. Although the Senate's version of energy legislation is not expected to address ANWR, its inclusion in the House bill is expected to make it a key issue in conference negotiations.
The measure also would allow the FERC to play the lead role over state governments in overseeing new liquefied natural gas (LNG) plants. This spurred a debate for states rights which leaders aim to quell with a compromise in conference.
Other Recent Actions Related to Nuclear Power
Gregory Jaczko, a recently appointed Nuclear Regulatory Commissioner, was asked this week to recuse himself from acting on matters related to the proposed nuclear waste repository in Nevada during his term as he previously opposed the project. The issue remains under debate.
The U.S. Geological Survey (USGS) shall soon be under investigation. A House Government Reform subcommittee agreed this week to appoint a full-time investigator to look into allegations that USGS hydrologists fabricated water quality data related to the Yucca Mountain nuclear waste project.
On Monday, the Department of the Interior finalized plans to transform the Rocky Flats nuclear weapons site in Colorado into a wildlife refuge. Once the project is complete the Flats will open most of the site for hiking and other recreational activities.
The American Nuclear Society will continue to monitor the progress of the energy measure in the coming months as well as other legislative activities related to nuclear energy. In the meantime, if you have any questions please do not hesitate to contact Craig Piercy, ANS Washington Office Representative.
