Washington (Platts)--7Apr2009

Legislation that turns over transmission planning and permitting to the
federal government and promotes nuclear power is expected to woo a contingency
of moderates in the US Senate that plans to set new energy policy.

The bill offered by Senator Ben Nelson, Democrat-Nebraska, authorizes the
Federal Energy Regulatory Commission exclusive jurisdiction over planning,
permitting, siting and even construction decisions related to developing an
"energy superhighway," made up of interstate power lines of at least 400 kV.

FERC would also have "backstop authority" over "secondary connections,"
the new or modified power lines needed to connect to the "energy
superhighway," under Nelson's energy bill.

In addition, the commission would design a plan for sharing or allocating
the costs among federal agencies, states and private entities interested in
the power lines. The plan would offer rebates for tariffs charged for
transporting power on these lines.

Nelson's bill comes as the Senate Energy and Natural Resources Committee
is marking up its own comprehensive energy policy bill. The committee is
expected to tackle issues related to electric transmission and other
controversial topics after Congress returns from its Easter recess April 20.

Nelson said the bill grew out of the proposals of the so-called "Gang of
10" senators from both parties that in 2008 drew up an energy plan that, among
other things, favored grid expansion to deliver renewable energy and
provisions to support nuclear power. The group has grown and Nelson said he is
working with his colleagues to draft comprehensive energy legislation.

Nelson's Sound Management of America's Resources and Technologies Energy
Act currently has no cosponsors but senators, including Louisiana Democrat
Mary Landrieu who sits on the energy committee, are reviewing the bill.

"Senator Landrieu worked closely with Senator Nelson on the 'Gang of 10'
energy proposal last year, and the SMART Act appears to retain some important
components of that bill," Landrieu spokesman Aaron Saunders said Monday.

"Senator Landrieu is still reviewing the SMART Act, but she is confident
that Senator Nelson and other like-minded Senators will continue to be strong
partners in helping America achieve greater energy security."

Nelson's energy bill contains significant provisions for nuclear energy,
including the authorization of $20 million each year through 2012 for a
nuclear workforce training program and the money necessary to add 40 full-time
positions at the Nuclear Regulatory Commission to expedite the process for
licensing new power plants.

The measure would also state that the US policy favors recycling spent
nuclear fuel in a proliferation-resistant way and proceed to build a spent
fuel recycling research and development facility.

The lack of support for nuclear waste storage has been seen as a hurdle
to future development of nuclear power. The Obama administration has favored
zeroing out funding for the proposed nuclear waste facility at Yucca Mountain,
Nevada, which has been under development for more than 20 years.