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Nuclear Costs

Estimates for new reactor construction costs continue to sky-rocket. Conservative estimates range between $6 and $12 billion per reactor but Standard & Poor's predicts a continued rise. The nuclear power industry is lobbying for heavy federal subsidization including unlimited loan guarantees but the Congressional Budget Office predicts the risk of default will be well over 50 percent, leaving taxpayers to foot the bill. Beyond Nuclear opposes taxpayer and ratepayer subsidies for the nuclear energy industry.

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Wednesday
Aug252010

How can "fiscal conservatives" support taxpayer subsidies to the nuclear industry?!

Although it won't be known for sure until next month, Alaska's Republican U.S. Senator, Lisa Murkowski, may have just lost to "Tea Party" insurgent candidate Joe Miller in yesterday's primary elections. Murkowski, and her father and predecessor in the same U.S. Senate seat, Frank Murkowski, have been top pro-nuclear power champions from their perch atop the Senate's Energy and Natural Resources Committee dating back over a decade. (The elder Murkowski, in fact, was strongly criticized for nepotism when he, just elected Governor of Alaska, tapped his own daughter to fill his own just vacated U.S. Senate seat!) But Tea Party candidates, including kingmaker Sarah Palin herself, are very pro-nuclear power in their own right. For example, Tea Party candidate Sharon Angle in Nevada, challenging Senate Majority Leader Harry Reid, has advocated reprocessing at Yucca Mountain in lieu of radioactive waste disposal there -- an activity that wouldn't require underground containers to eventually fail and leak over time, but would rather spew large amounts of harmful radioactivity directly into the environment in real time! And Palin herself, whose endorsement of Miller may have put him over the top in his campaign against Murkowski, has lambasted Reid and President Obama for their opposition to the Yucca dump in Nevada. So a Murkowski ouster may not signal any let up in pro-nuclear efforts to expand nuclear power and open radioactive waste dumps in the U.S. Senate, by any means, if they are simply replaced by equally pro-nuclear power Tea Party candidates! How Tea Party candidates can support taxpayer subsidies for new atomic reactors, and exorbitantly expensive government programs such as the Yucca Mountain dump or reprocessing facilities, given their supposed fiscal conservatism and concern for protecting taxpayers, is difficult to reconcile! Similar questions have been asked of currently serving supposedly "fiscal conseratives" in the U.S. Senate who also support massive taxpayer subsidies for new reactors in the form of risky federal loan guarantees.

Friday
Aug202010

Speaking tour of Japan challenges financing for new U.S. reactors

Beyond Nuclear's Kevin Kamps toured Japan from August 2nd to 12th, visiting Tokyo, Fukushima, Fukui, Kansai and Kyushu. A highlight included meeting with officials from the Japan Bank for International Cooperation and the Nippon Export and Investment Insurance agency, where a letter signed by 75 U.S. national and grassroots groups was delivered, urging no Japanese financing for risky new reactors in the U.S. A backgrounder spelled out these risks in detail. Most proposed new U.S. atomic reactors have designs owned by Japanese companies -- either Toshiba (Westinghouse), Hitachi (General Electric), or Mitsubishi. At South Texas Project, Toshiba and Tokyo Electric Power Company are even partners in the venture. In addition, Japan Steel Works would be the primary supplier of large nuclear components, such as reactor pressure vessels and steam generators. The Japanese news media were alerted to the letter and meeting, and the Japanese Prime Minister, Minister of Finance, and Minister of Economy, Trade, and Industry received copies of the letter.

Saturday
Jul242010

"Energy Dept. ignores Obama's openness pledge," by Peter Bradford

Former Nuclear Regulatory Commissioner Peter Bradford has slammed the U.S. Department of Energy in a recent op-ed in the Madison, Wisconsin Cap Times for its secrecy surrounding federal loan guarantees for new atomic reactors. Bradford argues that such secrecy harms taxpayers, the renewable energy and energy efficiency industries, and public service commissions' ability to protect ratepayers. He should know, he used to chair the utility regulatory commissions for the States of New York and Maine. A year ago, a coalition of national environmental groups, including Beyond Nuclear, wrote the Energy Secretary, urging that the nuclear loan guarantee program be made open and transparent, in accord with President Obama's calls for such on his very fist day in office.

Saturday
Jul242010

Kerry-Lieberman bill averted for now, but "energy-only bill" nuclear threats persist in U.S. Senate

Democratic Party leaders have indefinitely postponed the Kerry-Lieberman “American Power Act” climate-energy bill, due to lock-step Republican opposition to carbon cap “energy taxation,” but nuclear power subsidies must still be vigilantly guarded against in other legislation.

The Kerry-Lieberman "American Power Act" would have subsidized new atomic reactors in various ways, including raising nuclear power loan guarantee funding levels to $54.5 billion, as called for by the Obama administration. In addition, Kerry-Lieberman would have introduced a number of significant rollbacks on nuclear safety regulations. Analyses by NRDC, PSR, FOE, and UCS have highlighted numerous environmental and taxpayer concerns with the bill. NIRS has reported on how the nuclear loan guarantees would actually benefit foreign firms and workers, not American firms and workers, despite the financial risks being borne by American taxpayers. Despite Kerry-Lieberman's postponement, attachment of such provisions to other bills that are moving must still be guarded against.

However, the Senate has not recessed for its annual summer getaway from Washington D.C.'s blistering heat and humidity yet, and won't till August 7th. Thus, we must remain vigilant against any attempts by the politically savvy and powerful nuclear power industry to attach its mile-long-wish-list to another package of energy legislation that might reach the Senate floor, including by amendments offered by pro-nuclear Senators.

One bill to continue to watch out for is Sen. Bingaman's "American Clean Energy Leadership Act" (ACELA), which passed the Senate Energy and Natural Resources Committee in June 2009. It contains unlimited nuclear power loan guarantees, without congressional appropriations oversight.

Appropriations bills in both houses of Congress must also be watched out for. The House of Representatives passed $9 billion in nuclear loan guarantees on the emergency supplemental war and disaster relief funding bill on July 1st. The House Energy and Water Appropriations subcommittee also recently passed $25 billion in nuclear loan guarantees on its Fiscal Year 2011 Energy and Water Appropriations bill. If ultimately enacted into law, this would add up to the $34 billion in expanded nuclear loan guarantees called for by the Obama administration for FY2011.

Although final Senate action on such provisions is still pending, the Senate Appropriations Committee today did approve another $10 billion in nuclear loan guarantees.

It's ironic that the House and Senate continue to lard radioactive pork, in the form of nuclear loan guarantees, onto appropriations, climate and energy bills, given the U.S. Government Accountability Office's scathing report on the failing state of the Department of Energy Loan Guarantee Program. This includes the finding that DOE has given significant and undue advantage to nuclear power applicants, over other applicants.  Nuclear power subsidies even seem to be given priority over such basic societal needs as teachers' salaries, as pointed out by FOE.

As these appropriations bills continue to make their way through each house of Congress, and eventually merge in conference committee, we must continue to express our opposition to nuclear power subsidies at every turn.

Call both your U.S. Senators and Representative via the Capitol Switchboard at (202) 224-3121. At the Library of Congress website, you can also look up your Members' fax numbers and postal addresses for submitting hand written letters, as well as their webform for submitting electronic mail: click on "Senate" and "House of Representatives" on the left hand side, to look up your own Members of Congress.

Urge them to block any nuclear power subsidies, or nuclear safety regulation rollbacks, from being added to any energy or appropriations legislation. Gather together a group of concerned citizens, or representatives of environmental and taxpayer groups in your area, and request a meeting with both of your Senators, as well as your U.S. Representative, during their visit home during the August congressional recess. If your Members of Congress say they are too busy to meet with you, request to meet with their staff instead. Contact Kevin Kamps at Beyond Nuclear, (301) 270-2209 ext. 1 or kevin@beyondnuclear.org, if you have any questions about how to set up a meeting with congressional home-district offices.

Saturday
Jul242010

Environmental coalition letter to U.S. Senate Appropriators opposing additional dirty energy loan guarantees

 

On July 21st, a coalition of ten national environmental groups, including Beyond Nuclear, wrote the Members of the U.S. Senate Appropriations Committee, urging that no additional dirty energy loan guarantees for the fossil fuels and nuclear power industries be included in the Fiscal Year 2011 Energy and Water Appropriations bill. Unfortunately, $10 billion in nuclear loan guarantees and $7 billion in fossil fuels loan guarantees were included in the bill, approved in committee on a party line vote on July 22nd.  By contrast, renewables and efficiency loan guarantees were capped at a maximum of $3.8 billion -- meaning the actual level could be lowered. It seems that not only is the U.S. Dept. of Energy favoring nuclear projects over others, but so are U.S. Senate Appropriators. However, our pressure may have headed off an amendment in committee that would have larded even more radioactive and dirty fossil fuels pork onto these loan guarantee figures.

Last February, the Obama administration requested $34 billion in additional nuclear power loan guarantees, to add to the $20.5 billion already approved in 2007.

Thus far, the full House has approved $9 billion of additional nuclear loan guarantees -- approved on the House floor on July 1st as a rider on the Fiscal Year 2010 Emergency Supplemental Appropriations bill, a bill intended to fund the wars in Iraq and Afghanistan, as well as disaster relief. However, on July 22nd, by a 51 to 46 vote, the Senate rejected this House language. $10 billion to keep teachers on the job, rather than nuclear loan guarantees, was the primary issue of difference between the two houses, however. But, this means that the $9 billion in nuclear loan guarantees will likely be dropped, as the House must either agree with already passed Senate language, or else the war funding and disaster relief appropriations bill will not pass at all.

Also, last week, the House Energy and Water Appropriations Subcommittee approved $25 billion in new nuclear loan guarantees, matched by $25 billion for renewables/efficiency. The full House Appropriations Committee has yet to act on the bill. This $25 billion nuclear loan guarantee figure from the House would have to be reconciled with the $10 billion nuclear loan guarantee figure from the Senate.

The fight would normally now go to a conference committee between House and Senate Appropriators for the FY2011 Appropriations bill. However, a more likely scenario is that a "continuing resolution" (a CR) will be passed by both houses of Congress, freezing spending levels at FY2010 levels (meaning no additional nuclear loan guarantees, yet). Then, after November's mid-term elections, an Omnibus Appropriations bill would be proposed on both house floors, which would then go to conference committee, if necessary due to any differences, this December for final approval, to set funding levels for the remainder of FY11.

This will be a very dangerous time to guard against additions of large amounts of nuclear loan guarantees. It was on just such an Omnibus Appropriations bill, on Dec. 23, 2007 -- when most Americans were more concerned about holiday celebrations than Capitol Hill shenanigans -- that the current $20.5 billion in nuclear loan guarantees were approved.

Thank you to all who contacted their U.S. Senators and Representative during the latest flurry of attempted nuclear power industry money grabs in the U.S. Congress. We will need to remain vigilant for the foreseeable future.