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U.S. Department of Energy

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This article is part of the Nuclear spin analysis project of SpinWatch (UK) and the Center for Media and Democracy.

This article is part of the Water portal on SourceWatch.

The U.S. Department of Energy (DOE) ...

1 Ending GNEP's domestic activities
2 Loan guarantees to four nuclear companies
3 Lobbied by the nuclear industry for loan guarantees
4 Personnel
5 Articles and resources

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Ending GNEP's domestic activities

In April 2009, the Obama administration announced it was scrapping the domestic portion of the Global Nuclear Energy Partnership. Environmental groups had criticized the plans for domestic nuclear waste reprocessing as "too expensive and too dirty." Energy Department spokesperson Jen Stutsman said in a statement, "The Department has already decided not to continue the domestic GNEP program of the last administration. ... The long-term fuel cycle research and development program will continue, but not the near-term deployment of recycling facilities or fast reactors." ^[1]

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Loan guarantees to four nuclear companies

In June 2009, the U.S. Department of Energy (DOE) indicated that the $18.5 billion in federal funding for the first wave of new nuclear power reactors would be shared by four companies: UniStar Nuclear Energy, NRG Energy, Scana and Southern Company. "The four companies have already selected sites for their reactors and are at the front of the pack to receive licenses to build and operate them from the Nuclear Regulatory Commission" (NRC), reported the Wall Street Journal. While the four had yet to be formally named, interviews with DOE and NRC staff identified the likely companies. The decision was based on which companies had "strong development teams and plans that could be implemented quickly." The DOE also wanted to fund both "traditional" utilities and "merchant" generators, and considered foreign partners "that might be able to contribute loans or equity" a plus. ^[2]

"Two of the current leaders in nuclear power, Exelon Corp. and Entergy Corp.," are not expected to receive federal funding. Both companies indicated they may not join the expected "first wave" of new nuclear reactors. "We can't build without loan guarantees," said Exelon's Craig Nesbit. Entergy's Mike Bowling said, "We don't want to be left behind, but we think this first wave will pave the way for others." ^[2]

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Lobbied by the nuclear industry for loan guarantees

In May 2007, The Hill reported that the Nuclear Energy Institute (NEI), along with "top banking institutions" are lobbying the U.S. Department of Energy (DOE) and Office of Management and Budget (OMB) for "more comprehensive" federal loan guarantees for new nuclear power plants. "Since the April meeting" with OMB, the DoE "has proposed that the federal government cover 90 percent of loan guarantees, higher than its original guidelines of 80 percent." [1]

NEI's "New Plant Finance Task Force" is telling federal agencies that without total or near-total federal loan guarantees, which "act as default protection for private lenders," nuclear power companies will "have difficulty in financing new plants, which can cost as much as $4 billion." NEI's Richard Myers said that even increasing the loan guarantees to 90% of plant costs "will probably not be workable." A DOE spokesperson said the agency was not supporting a greater than 90% guarantee because the agency must protect "the taxpayer dollar from the potential financial risks of these projects." [2]

In June 2008, Investor's Business Daily reported that "the DOE will begin the review process later this summer," for the Department's $18.5 billion loan guarantee program for new nuclear power plants. "The $18.5 billion may be enough to partially fund only three or four nuclear plants, analysts say. About a dozen proposals are expected to vie for the financing." ^[3]

The loan guarantees can "cover up to 80% of construction costs. Utilities, some of which have formed consortiums, are expected to provide 20% in equity. The Treasury may directly finance certain projects." ^[3]

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Personnel

Samuel W. Bodman, Secretary
Dennis R. Spurgeon, Assistant Secretary of Energy (Nuclear Energy) (new position) (nominated February 13, 2006)

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Articles and resources

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References

↑ Rob Pavey, "DOE to scrap SRS initiative," The Augusta Chronicle (Georgia), April 15, 2009.
↑ ^2.0 ^2.1 Rebecca Smith, "U.S. Chooses Four Utilities to Revive Nuclear Industry," Wall Street Journal (sub req'd), June 17, 2009.
↑ ^3.0 ^3.1 Reinhardt Krause and Sean Higgins, "New Nuclear Plants Are On Their Way, With Federal Help," Investor's Business Daily, June 20, 2008.