Resources & Stats

Nuclear Energy Insight

July 2010—In a hearing room repurposed for a news conference, reporters, congressional staff, energy lobbyists and environmentalists spilled out the doors and into the halls.

The dais was scarcely less crowded, as Sens. John Kerry (D-Mass.) and Joe Lieberman (I-Conn.) hosted a wide range of executives from diverse energy and environmental organizations to help them unveil their Senate energy plan, the American Power Act.

The bill encompasses a portfolio of energy options and encourages research and development for them, including nuclear energy.

“It is the policy of the United States, given the importance of transitioning to a clean energy, low-carbon economy, to facilitate the continued development and growth of a safe and clean nuclear energy industry,” the bill says.

The bill takes on two major issues for nuclear energy. While the electricity produced by a nuclear power plant is less expensive than that from any other baseload source, the capital cost to a company seeking to build a new reactor is high—$6 billion to $8 billion.

The bill addresses this through provisions that either bring down costs or make them easier for a company to shoulder. Among other provisions, the bill:

• increases the number of nuclear reactor projects that can receive regulatory risk insurance from six to 12 reactors. This insurance fund, paid into by industry,

• provides up to $500 million to cover delays in a project that are out of the owner’s control.

• reduces the accelerated depreciation period for new nuclear power plants to five years, similar to what is allowed for wind and solar energy projects.

• creates a 10 percent tax credit to cover some construction costs.

• allows tax-exempt bonds to be used to finance public-private partnerships for nuclear projects.

• provides direct grants instead of tax credits for some nuclear plant construction costs incurred by public and cooperative electric companies.

• increases the loan guarantee authority to $54 million from $36 million.

The bill also includes two provisions to make the federal licensing process for new reactors more efficient:

• amends the Atomic Energy Act to eliminate administrative hearings on non-contested issues.

• amends the Atomic Energy Act to allow an environmental impact statement prepared as part of the site process to be reused in an application to build a plant.

Supplemental information can be added, where necessary.

—Read more articles in Nuclear Energy Insight and Insight Web Extra.