DEMOCRATS APPROVE EXPANSION OF NUCLEAR POWER

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NY TIMES - A one-sentence provision buried in the Senate's recently
passed energy bill, inserted without debate at the urging of the nuclear
power industry, could make builders of new nuclear plants eligible for
tens of billions of dollars in government loan guarantees. Lobbyists
have told lawmakers and administration officials in recent weeks that
the nuclear industry needs as much as $50 billion in loan guarantees
over the next two years to finance a major expansion. . .

The provision has the potential to considerably expand the nuclear
industry, which plans to build 28 new reactors at an estimated cost of
about $4 billion to $5 billion apiece. And while the nuclear industry
would be the biggest beneficiary, the provision could also set the stage
for billions of dollars in loan guarantees for power plants that use
"clean coal" technology and renewable fuels.

The nuclear industry is enjoying growing political support after decades
of opposition from environmental groups and others concerned about the
risks. An increasing number of lawmakers in both parties, worried about
global warming and dependence on foreign oil, support some expansion of
nuclear power.

But the provision could go much further than many lawmakers had in mind
by giving the Department of Energy the power to approve an unlimited
amount of loan guarantees for "clean" power generation. Under
legislation enacted in 2005, nuclear power qualifies as a clean
technology because it does not emit carbon gases that contribute to
global warming.

http://www.nytimes.com/2007/07/31/washington/31nuclear.html?hp

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