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Home » News » Energy

Wednesday, April 8, 2009

Senate budget revives 'nuclear pork'

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$50 billion loan guarantee plan tucked in for Energy Department

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  • SPONSOR: Sen. Michael D. Crapo, Idaho Republican, is eager for a loan guarantee expansion that was stripped from the stimulus bill. (Getty Images)

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By Edward Felker

CLARIFICATION: This story on Energy Department loan guarantees for nuclear power and other energy industries did not fully identify the group Securing America's Future Energy. The group supports expanded production of a range of domestic energy resources, including nuclear, oil and gas, and renewables.

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Nuclear energy advocates quietly slipped an extra $50 billion for an Energy Department program into the Senate's budget blueprint last week, giving new life to a provision that had been rejected as "nuclear pork" in February's economic stimulus bill.

Without debate, explanation or a recorded vote, senators accepted an amendment by Sen. Michael D. Crapo, Idaho Republican, to boost the department's "low-carbon" energy loan construction guarantee program by $50 billion over five years. The program would make it easier for the nuclear power industry to secure financing for plants, including the more than two dozen that are now pending.

The amendment is another challenge by the Democrat-led Senate to President Obama, whose energy policies have been antagonistic toward nuclear power. Part of a cluster of 15 changes proposed Thursday night at the tail end of the budget debate, the provision was offered on the Senate floor by Budget Committee Chairman Kent Conrad, North Dakota Democrat.

The same proposal was stripped from the stimulus bill after a leading environmental group, Friends of the Earth, called it a bailout for the nuclear power industry. At the time, the group ran ads attacking the sponsorship by Sen. Robert F. Bennett, Utah Republican, and called on Senate Appropriations Committee Chairman Daniel K. Inouye, Hawaii Democrat, and Senate Majority Leader Harry Reid, Nevada Democrat, to spurn the provision.

Friends of the Earth plans to lobby against the plan again. It says the measure's reappearance, even in its current nonbinding form in the Senate-passed budget resolution, is proof that its sponsors are determined to win the money this year.

"There is no question the nuclear industry is not giving up," said Nick Berning, a spokesman for Friends of the Earth. The industry's backers in the Senate, he said, are "trying again and we're going to fight it."

A spokesman for Mr. Crapo said the senator backed the amendment as a way to expand nuclear energy but noted that the Energy Department guarantee program, created in 2005, targets several so-called "clean energy" programs and does not favor nuclear power over other sources.

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