US Senate energy bill omits nuclear energy, hydropower provisions

Washington (Platts)--20May2005

Senators Pete Domenici (Republican-New Mexico) and Jeff Bingaman (Democrat-New
Mexico) have elected to leave out of energy legislation for now a
multi-billion-dollar nuclear energy demonstration project in Idaho and
hydropower relicensing provisions that have long divided the senators. The US
Senate Energy and Natural Resources Committee on Friday released the nuclear
and renewable energy sections of the bill, which the panel plans to debate
next week. 

The nuclear energy section includes no funding for a demonstration of an
advanced reactor proposed for the Idaho National Laboratory that would produce
both nuclear power and hydrogen. The project was authorized in energy
legislation that failed in the last Congress. But the project has come under
fire from Energy Secretary Samuel Bodman, who estimates it will cost the
government $2-bil. During testimony before House appropriators in March,
Bodman said he would "call into question whether we are going to meet any
schedule" for building the Generation IV reactor.

In addition to taking out the Gen IV reactor provisions from last Congress'
bill, the senators kept out of the bill proposals for a reactor
decommissioning pilot program and a requirement that the US Dept of Energy
report to Congress on the feasibility of siting nuclear plants at DOE sites.
The hydropower language was left out of the renewable energy title, which also
lacks a renewable portfolio standard. 

Republicans in recent congresses have sought to streamline the federal dam
licensing process by limiting the ability of groups to challenge a project.
Such language is in HR 6, the House's energy bill that passed last month. The
renewable portfolio standard also divided Domenici and Bingaman, who is
expected to win a Senate floor vote including the provision mandating power
companies use renewables to generate 10% of their electricity. The Bush
administration and most House and Senate Republicans oppose a renewable
portfolio standard.

This story was originally published in Platts Electricity Alert
http://www.electricityalert.platts.com

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