IB88090
Nuclear Energy Policy
September 15, 2003

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Summary:

Nuclear energy policy issues facing Congress include questions about radioactive waste management, research and development priorities, power plant safety and regulation, terrorism, and the Price-Anderson Act nuclear liability system. The Bush Administration has stressed the importance of nuclear power in the nation's energy policy. The Administration's FY2004 budget request includes $35 million for a Department of Energy (DOE) effort to encourage deployment of new commercial nuclear power plants by 2010, about the same as the FY2003 appropriation. The Administration is also seeking $4 million for the Nuclear Hydrogen Initiative, a new DOE program in which nuclear reactors would produce hydrogen to fuel motor vehicles. The House cut the Administration's nuclear energy request slightly (H.R. 2754, H.Rept. 108-212), while the Senate Appropriations Committee recommended a $44.8 million increase (S. 1424. S.Rept. 108-105). Energy legislation under consideration on the Senate floor (S. 14) would have authorized financial assistance for new nuclear power plants and funding to construct a demonstration reactor in Idaho to produce hydrogen. However, those provisions were not included in the energy legislation approved by the Senate July 31, 2003 (H.R. 6). Price-Anderson coverage for new commercial reactors would be extended through August 1, 2012, by the Senate version of H.R. 6 and a bill approved by the Senate Environment and Public Works Committee April 9, 2003 (S. 156). A provision in the version of H.R. 6 passed by the House April 11, 2003, would extend Price-Anderson through August 1, 2017. S. 14 had provided for a permanent extension. The September 11, 2001, terrorist attacks on the United States raised questions about nuclear power plant security. Reactor security provisions are included in the House version of H.R. 6. Legislation to strengthen reactor security requirements (S. 1043) was approved by the Senate Environment and Public Works Committee on May 15, 2003. Disposal of highly radioactive waste has been one of the most controversial aspects of nuclear power. The Nuclear Waste Policy Act of 1982 (NWPA, P.L. 97-425), as amended in 1987, requires DOE to conduct detailed physical characterization of Yucca Mountain in Nevada as a permanent underground repository for high-level waste. A resolution to allow work at Yucca Mountain to proceed despite state objections was signed by the President on July 23, 2002 (P.L. 107-200). DOE is seeking sharply higher funding for the nuclear waste program for FY2004, contending that any less would prevent the Yucca Mountain repository from being ready to receive waste by 2010 as currently planned. The House agreed, voting to boost funding to $765 million ­ $174 million above the request. However, the Senate Appropriations committee voted to cut the request by $166 million. Whether progress on nuclear waste disposal and other congressional action will revive the U.S. nuclear power industry's growth will depend primarily on economic considerations. Natural gas- and coal-fired power plants currently are favored over nuclear reactors for new generating capacity. However, some electric utilities are seeking approval of sites for possible new reactors.