Senator Proposes Financial Fix for Yucca Project
Jun 23 - Las Vegas Review - Journal
The plan by Sen. Pete Domenici, R-N.M., reflects growing concern among
nuclear power supporters that looming budget cuts threaten to kill the Nevada
nuclear waste repository.
Domenici, an influential voice on nuclear issues, has formed a bill that
contains both short-term and long-term financial fixes for the Yucca project,
according to a draft copy obtained Monday.
The Department of Energy says it plans to file a repository license
application in December toward a 2010 goal to begin burying spent nuclear fuel.
Critics of the Yucca program said Domenici was relying on questionable
accounting to rescue the repository. Nevada leaders fear the changes could
shield the Energy Department from scrutiny as it enters crucial licensing and
construction phases.
"I will be surprised if there is enough support for this ploy to
work," said Sen. Harry Reid, D-Nev.
Domenici would raise $446 million by imposing a one-time 60 percent surcharge
on the fees utilities contribute to the Yucca program based on the amounts of
electricity they produce from nuclear energy.
Coupled with other spending, the surcharge would enable Congress to keep the
program on track by largely matching what it gave the Energy Department to spend
last year, about $577 million.
Longer term, the bill would change accounting on about $750 million that
utilities pay into a special nuclear waste fund each year.
The reclassification would make it easier for Congress to appropriate money
from the fund without running afoul of spending limits, a change that many
believe will be necessary to supply about $1.3 billion the government will
require annually to build the repository and ship waste there from around the
country.
Domenici began circulating his proposal on Friday. Elements were reported
Monday in The Wall Street Journal.
The New Mexico senator is trying to rescue the Yucca Mountain Project from
massive layoffs and potential shutdown, a spokeswoman said Monday.
Without a budget fix of some kind, Energy Secretary Spencer Abraham has said
1,700 project employees, about 70 percent of the work force, would be handed
layoff notices this summer. Most of the workers are in Nevada.
Domenici believes deep layoffs would effectively kill the repository because
it would be difficult to rehire workers with expertise, his aides said.
Reid, a strong opponent of the Yucca repository, forced a Senate energy and
water subcommittee to postpone a meeting this week at which Domenici was to
advance his bill.
"If Yucca Mountain funding is truly that important to Senator Domenici
and President Bush, they should consider shifting funds from New Mexico labs and
other projects, rather than trying to grab nearly half a billion dollars more
from taxpayers," Reid said in a statement.