Congress expands nuclear-loan guarantee program


WASHINGTON, D.C. Lawmakers agreed to increase funding for a loan program to guarantee up to 80 percent of nuclear- reactor construction costs — a move designed to rally the nation’s nuclear-energy revival.

The legislation contains a two-year approval of the loan-guarantee program and directs the Secretary of Energy to provide $20.5 billion specifically for nuclear energy — $18.5 billion for nuclear reactors and $2 billion for uranium enrichment — as well as $10 billion for renewable energy and energy efficiency and $8 billion for clean-coal technology.

Nevada Republican Pete Domenici, ranking member of the Senate Energy and Natural Resources Committee, said the deal is part of the fiscal 2008 Omnibus Appropriations bill Congress has approved.

"Attracting investors for clean-energy projects is challenging, so we should do what we can to help get their projects off the ground," Domenici said in a release.

Three companies already have submitted complete construction and operating license applications for reactors to the Nuclear Regulatory Commission, but none has committed to building plants. New plant construction is estimated to cost more than $5 billion, without a reliable loan-guarantee program.

Speaking Monday about the nation’s economic health in Fredericksburg, Va., President Bush said nuclear energy was environmentally sound and new plants are needed to help satisfy increasing levels of demand. The 104 domestic operating plants currently generate about 20 percent of U.S. electricity.

"The administration is one step closer to issuing guarantees for loans for clean energy projects that will help reduce our dependence on foreign energy sources, boost economic competitiveness, and combat climate change," DOE spokeswoman Megan Barnett wrote in an e-mail.

Dominion Resources Inc. last month became the third company to file a complete application for a new nuclear reactor, at its North Anna Power Station in Louisa County, Va., following the Tennessee Valley Authority, which in October applied for new reactors at the Bellefonte nuclear power station near Scottsboro, Ala.

In September, NRG Energy Inc. did what no energy had done in 30 years when it submitted an application to build and operate reactors at its Bay City, Texas, power plant site. Constellation Energy Group Inc. filed a partial application earlier this year for a proposed new reactor in Lusby, Md.

Loan-guarantee applicants must pay a credit subsidy, or "risk premium," representing the value of the risk of loss to the government of each particular project. But the industry’s trade group did not see that as a barrier to entry.

Nuclear Energy Institute spokesman Steve Kerekes called the fee a "new wrinkle," but said the increased funding is a "very positive development" that will help sustain the first handful of new plants. "From the beginning, we wanted a limited stimulus for a limited number of new plants for a limited time period," he said.

As the fees are collected, the loan-guarantee program will become self financing, Domenici said.

The industry has expressed concern about the untested regulatory approval process, environmental issues, waste management and the ability to produce electricity at a competitive price. Nuclear regulators say the review process for new plants will take up to 42 months.

Boston Herald

Electricity News
Product Info Centres
Electrical Transformers
Electrical Test Equipment
Electrical Safety/Arc Flash
Electrical Safety Forum
Arc Flash Clothing
Renewable Energy
Alternative Energy
Other Options

Subscription

 
Training Courses

Industrial Lighting Forum

  • May 1-2, 2014 - Mississauga, ON

Testing and Commissioning Industrial Power Systems

  • May 5-6, 2014 - Richmond, BC
  • May 7-8, 2014 - Edmonton, AB
  • May 12-13, 2014 - Winnipeg, MB
  • May 15-16, 2014 - Mississauga, ON

T&D Growth And Innovation Forum

  • May 5-6, 2014 - Mississauga, ON

CSA Z462 Arc Flash Electrical Safety Workshop

  • May 7, 2014 - St. Johns, NL
  • May 8, 2014 - Mississauga, ON
  • May 12, 2014 - Edmonton, AB
  • May 15, 2014 - Richmond, BC
  • September 9, 2014 - Mississauga, ON
  • September 11, 2014 - Winnipeg, MB
  • September 12, 2014 - Saskatoon, SK
  • September 15, 2014 - Edmonton, AB
  • September 17, 2014 - Richmond, BC

2-Day CSA Z462 Arc Flash Workshop AND CSA Z463 Electrical Maintenance Workshop

  • May 8-9, 2014 - Mississauga, ON
  • May 12-13, 2014 - Edmonton, AB
  • May 15-16, 2014 - Richmond, BC

CSA Z463 Electrical Maintenance Workshop

  • May 9, 2014 - Mississauga, ON
  • May 13, 2014 - Edmonton, AB
  • May 16, 2014 - Richmond, BC

Industrial Power Quality and Harmonics

  • May 26-27, 2014 - Mississauga, ON
  • May 28-29, 2014 - Winnipeg, MB
  • June 2-3, 2014 - Edmonton, AB
  • June 4-5, 2014 - Richmond, BC

Electrical Generators & Backup Emergency Power Systems

  • September 22-23, 2014 - St. Johns, NL
  • September 24-25, 2014 - Mississauga, ON
  • September 29-30, 2014 - Winnipeg, MB
  • October 1-2, 2014 - Edmonton, AB

Ontario Electrical Safety Code Training

  • September 29-30, 2014 - Mississauga, ON
 
Affiliates
 
Featured Product

Arc Flash Analytic Mobile for Android and iOS operated systems

ARCAD Inc.
The new arc flash analysis and labeling mobile app for Android and iOS operated systems by Google and Apple Inc. is now available.
more...
 
Advertisement
 
Latest Buyer's Guide Companies
Sign Up Today and Receive Our FREE E- Newsletter

E-newsletter service - Exciting industry trends, technical developments, product information, forums and electrical training courses.