E&W Subcommittee Approves 07 Bill with Spent Fuel Language, $10 Million to Launch CAP effort

June 27, 2006
04:42 PM
Washington, D.C. – Senator Pete Domenici, Chairman of Energy & Natural Resources and the Energy and Water Appropriations Subcommittee, announced today that his subcommittee unanimously approved his $30.7 billion appropriations bill for the Energy Department, including language clarifying DOE’s responsibility for spent nuclear fuel and a $10 million appropriation for DOE’s administration of a program to site consolidation and preparation (CAP) facilities for the interim storage off spent nuclear fuel.
 
The FY07 appropriations bill also included a huge infusion of funding to advance energy initiatives authorized by the National Energy Policy Act of 2005.
 
Section 313 of the bill clarifies the Secretary of Energy’s jurisdiction over spent nuclear fuel, authorizes DOE to store commercial nuclear waste from the country’s 65 reactor sites and instructs the Energy Secretary, in consultation with states, to determine how many CAP sites will be needed and where they should be located. DOE can store commercial nuclear waste for as long as 25 years before it is recycled or stored at Yucca Mountain.
 
Domenici’s statement in interim storage:
 
 “These provisions are the logical next step to managing our spent nuclear fuel. We face mounting liability because we haven’t taken responsibility for this spent fuel before now as we should have done under existing law.  I remain firmly committed to Yucca Mountain as a permanent storage solution, but the opening of Yucca is a long way off.  In the meantime, we need to aggressively explore recycling options.  I am impressed by the GNEP program and happy to more than fully fund this promising program. With the CAP sites, GNEP and Yucca, I think we now have in place the near-term, mid-term and long-term solutions for our spent nuclear fuel. I hope we can finally unclog this drain.”
 
 
A summary of Section 313 provisions can be found at the end of this release.
 
Domenici also provides roughly $380 million in the bill to support energy-related activities authorized in the Energy Policy Act of 2005, including $148 million for solar, a $65.5 million increase, which includes $18 million for a solar-hydrogen pilot plant; $213 million for biomass, a $63 million increase; the restoration of $22.5 million for geothermal research and development; $4 million to supposed advanced hydropower and $95.3 million for building technology split evenly to support energy conservation demonstration projects and to implement solid state lighting like high-efficiency LED lights.
 
Domenici statement regarding EPACT funding:
 
“The administration’s budget sought 54 percent of the funding for EPACT provisions that we requested when we passed the bill. I understand the Administration’s desire to fund the President’s Advanced Energy Initiative, which complements the energy bill.  My goal has been to increase our commitment to EPACT while supporting the Advanced Energy Initiative. I have appropriated roughly $380 million above the Administration’s request for the implementation of EPACT.”
 
EPACT provisions and funding:
 
The Senate contains bill language to clarify authorities under Section 17 of EPACT necessary in order for the Department to execute federal loan guarantees which utilize private financing to cover the risk premium traditionally covered by the Department.  This frees up scarce appropriated resources, but still provides the full faith and credit of the federal government. (Section 311)
 
Biomass
•           The Committee fully funds authorized level of $213 M for bioenergy research under Section 931
 (c).  This is an increase of $63.3 M above the request. 
•           $3 M is provided to implement Sec. 945 Regional Bioeconomy Development Grants.
•           The Committee report directs the Department to study a reverse auction as a production incentive provided in Section 942. – Production Incentives for Cellulosic Biofuels.
 
Solar
•           The budget request provides $148 M for solar energy, an increase of $65 M over FY’06 levels.
•           Report provides $9 M from solar funding and $9 M from Nuclear Energy to support a solar-hydrogen pilot plant authorized in Section 812, 934, and 974 of EPACT.
 
Geothermal
•           Consistent with the Section 931 (C) this bill restores funding of $22.5 M for continued geothermal R&D.
 
Hydropower
•           Provides $4 M to support research goals of advanced hydropower as provided in Section 931 (D).
 
Building Technology
•           Provides $5 M to support the implementation of Section 140, energy conservation demonstration activities.
•           Provides $5 M to implement solid state lighting provisions in EPACT.  To encourage R&D in high efficiency LED lights. (Section 912)
 
Weatherization
•           An additional $40 M was provided to restore weatherization grants consistent with section Section 122
•           Fully funds State Energy Plants (Section 124).
 
Nuclear Power
•           $27 M is restored to support the University Research program as provide in Section 954.
•           $88 M is provided for NP2010, an increase of $33.9 M consistent with Section 952.
•           Next Generation Nuclear Plant is provided an additional $16.6 M consistent with subtitle C.
•           $9 m is provided to support the Nuclear Hydrogen Initiative as provided in Sections 812(a), 934, and 974. ($9 M is also in Solar)
•           The bill fully funds GNEP as directed in Section 953.
 
Fossil Energy
•           Clean Coal program is funded at $70 M, an increase of $65 M above the request. Consistent with Section 401
•           Coal R&D research is provided at $435 M, up $104 M above the request.
•           Carbon Capture and Sequestration +$12 M above the request consistent with Section 963.
•           Provides +$10 M in natural gas technology for Methane Hydrates research authorized in Section 965 and 968.
•           Provides +$20 M in oil shale and tar sands as directed in Section 965and 369 supporting oil shale and tar sands.
 
Water Technology
•           $18 M was provided to develop water/energy conservation solution as provided in Section 979.
 
 
 
Weatherization Activities
•           $204.5 million, including $200 million (a $40.4 million increase) to fund the weatherization grant program.  It also provides $49.5 million to fund the State Energy Program.
 
Electricity Delivery and Energy Reliability (EDER)
•           $135 million, up $10 million, which includes: $45.5 million to fully fund high-temperature superconducting wire R&D; $10 million for Sandia and Idaho National Lab energy infrastructure security R&D.
 
SUMMARY OF SECTION 313 PROVISIONS:
 
Sec. 313. Consolidation and Preparation Facilities
 
•           The Secretary is required to appoint a Director of Consolidation and Preparation (“CAP Director”). 
 
•           Within 180 days of enactment, the CAP Director is required to issue a report making recommendations to the Secretary regarding the siting of a facility for the consolidation and preparation of spent nuclear fuel (“CAP facility”) in each state containing a civilian nuclear power reactor.
 
•           Within 270 days of enactment, the Secretary, in consultation with the Governor of each State containing a civilian nuclear power reactor, shall designate a site for a CAP facility within that state.
 
•           The Secretary may determine that it is in the National interest to designate a regional CAP facility.  No regional CAP facility may be designated in a state in which a state-wide CAP facility has previously been designated.
 
•           Any site owned by the Federal Government, and any site that can be purchased from a willing seller may be designated as a CAP facility site.   Nevada, as the State that is the site of the permanent repository is ineligible, along with any State in which a commercial, away from reactor, dry cask storage facility is authorized.  Lands within National Parks, Wildlife Refuges, or Wilderness areas are also ineligible.
 
•           The Secretary shall submit a license application to the NRC no later than 30 days after the designation of a CAP facility site.
 
•           The license for a CAP facility shall be for a term of 25 years, and shall be non-renewable.
 
•           The Secretary must submit an environmental report with the license application to the NRC.  The NRC is required to issue an Environmental Impact Statement in accordance with the National Environmental Policy Act of 1969 prior to issuing a license.  Judicial review of the EIS will be consolidated with the review of the NRC’s licensing decision. 
 
•           The NRC is required to grant or deny a license application for a CAP facility within 32 months.
 
•           In addition, at the request of the owner of a shut-down reactor, the Secretary of Energy (the “Secretary”) is required to assume title to, and responsibility for, spent nuclear fuel at the site of the shut-down reactor. 
 
•           The provisions of this Act, along with the Secretary’s obligation to develop a permanent repository under the Nuclear Waste Policy Act of 1982, provide sufficient and independent grounds for further findings by the NRC that spent nuclear fuel will be disposed of safely for purposes of licensing civilian nuclear power reactors.  
 
•           The Secretary may make expenditures from the Nuclear Waste Fund for the siting, construction and operation of CAP facilities, and the costs associated with taking title to spent fuel at shut down reactors. 
 
 
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