Energy Bill clears Congress, awaits President's signature
Included in the legislation is a sizable package of tax incentives, risk insurance and loan guarantees designed to facilitate the financing, construction and operation of new U.S. nuclear generation capacity.
"With the strong nuclear provisions in the Energy Bill, Congress will have set into motion the momentum necessary to assure a strong nuclear energy component in our national energy profile," said Jim Reinsch, President of the American Nuclear Society. "This nuclear component will allow the United States to achieve and sustain its national, economic, and environmental security, and its high standard of living."
The principal nuclear provisions included in the Act are:
Price-Anderson: A 20-year renewal of the framework of industry self-funded liability insurance against catastrophic accidents. Does not include the "subrogation" provision, which could have greatly increased nuclear contractor liabilities.
Loan Guarantees: The Act gives the Secretary broadly-defined authority to approve loan guarantees for up to 80 percent of the cost of "innovative technologies" that "avoid, reduce or sequester air pollutants or anthropogenic emissions of greenhouse gases." While aimed primarily at encouraging new nuclear plant construction, the authority may also be used by the Energy Secretary to provide a financial risk mitigation for qualifying clean coal and renewable projects.
Risk Insurance: The Act creates a financial "backstop" for unforeseen federal, state, and local regulatory delays for as many as six new nuclear reactors built under NRC's new combined construction and operating licenses. The program will cover the full cost of delay for the first two new reactors - up to $500 million each - and 50 percent of the delay costs - up to $250 million - each for the next four reactors.
Production Tax Credit: The Act includes a 1.8 cents per kilowatt-hour production tax credit for energy generated from new nuclear power plants. However, unlike other sources of emission-free power, the nuclear benefit is limited to the first 6,000 megawatt-hours of generation capacity or eight years of operation, and is capped at $125 million.
Next Generation Nuclear Plant: The Act includes a $1.25 billion plan to fund the Next Generation Nuclear Plant at the Idaho National Laboratory. This project would test advanced reactor concepts and technologies and facilitate the direct nuclear production of hydrogen.
Advanced Fuel Cycle Initiative: The act includes an AFCI funding plan that would enable advanced nuclear power plants, more proliferation-resistant nuclear fuel and improved methods for managing used nuclear fuel.
Medical Isotope Assurance: The Act clarifies the NRC procedures for licensing export of Highly Enriched Uranium for the purposes of medical isotope production. The provisions seek to balance proliferation concerns with the need to ensure a sufficient supply of radioisotopes to the U.S. medical community.
University Nuclear Engineering Program: The Act includes a funding plan that, subject to appropriations, would double the current funding for university-based nuclear engineering programs by fiscal year 2007.
Please contact Craig Piercy in the ANS Washington Office (202) 589-2818 if you have any questions.
The final text of the bill can be obtained at: http://energycommerce.house.gov/108/0205_Energy/conference/EnergyConf_report.pdf
ANS Members
• D.C. Connection
• The End of the Beginning: Energy Bill analysis from the ANS Washington Office
