IB88090
Nuclear Energy Policy
April 22, 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. Energy legislation being marked up by the Senate Energy and Natural Resources Committee (an unnumbered Chairman's mark) would authorize loan guarantees and other financial assistance for construction of up to 8,400 megawatts of new commercial nuclear generating capacity. Also included in the bill's nuclear title, approved April 10, 2003, is a $500 million authorization to construct a demonstration reactor in Idaho to produce hydrogen. Price-Anderson would be extended permanently by the Senate Energy Committee bill. The Senate Environment and Public Works Committee approved a bill April 9, 2003 (S. 156) that would extend Price-Anderson coverage for commercial nuclear plants through August 1, 2012. A provision in an omnibus energy bill (H.R. 6) passed by the House April 11, 2003, would extend PriceAnderson through August 1, 2017. The September 11, 2001, terrorist attacks on the United States raised questions about nuclear power plant security. Reactor security provisions are included in H.R. 6. Bills to strengthen nuclear power plant security have been introduced in the 108th Congress (S. 6, S. 131). 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. President Bush recommended approval of the site February 15, 2002, and Nevada Governor Guinn on April 8, 2002, issued a "state veto" of the site, as allowed by NWPA. A resolution to overturn the "state veto" and allow further activity at Yucca Mountain to proceed was signed by the President July 23, 2002 (P.L. 107-200). 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.