Washington (Platts)--29Jan2009

US Senate Democratic Leader Harry Reid said Thursday he believes the
chamber will pass a massive economic stimulus package next week, despite
continued Republican opposition to the measure.

The bill includes a $51-billion investment in energy, and would authorize
$34 billion in tax credits related to renewable energy, electricity
transmission, and other related industries.

"If we did nothing else except [the energy portion of the bill], it would
be a new day for America," Reid told reporters during a briefing in
Washington.

The US House of Representatives passed its own version of the American
Recovery and Reinvestment Act (H.R. 1) on Wednesday with no Republican
support, but Senate rules require a 60-vote majority to pass controversial
legislation.

The Democrats currently only have 58 votes. Two Maine Republicans,
Olympia Snowe and Susan Collins, frequently vote with Democrats on a variety
of issues.

President Obama reached out to House and Senate Republicans before votes
on the package began, but Republicans have shunned the measure because they
say it does not contain enough tax credits.

The Senate Finance Committee on Tuesday expanded the tax package to $342
billion from $275 billion, though the energy provisions of the bill were not
affected.

This change did little to appease Republicans. "There's a growing and
grim recognition, I believe, within our conference that there's very little
likelihood of a significant change in this colossal spending bill," said
Senator Jeff Sessions, Republican-Alabama, at a separate Thursday briefing.

Republicans have pledged to try to change the bill when it reaches the
Senate floor, by offering amendments that would strip its spending provisions
and add to its tax cuts. Reid said he would allow the amendment process to go
forward until it is "abused."

One key way in which the Senate bill differs from the House version is
that it would authorize up to $50 billion in loan guarantees for advanced
low-carbon energy, which would be a major boon to domestic nuclear plant
developers.

The House bill makes up to $80 billion available in loan guarantees, but
only renewable energy and energy transmission can participate in the program.

Reid, who represents Nevada, has frequently clashed with the nuclear
industry on waste disposal issues, especially the wisdom of storing waste
underground long-term at Yucca Mountain. However, he said he had no problem
with the loan guarantee provision.

"You know, I'm not knee-jerk opposed to nuclear power. "I've been opposed
we don't have a safe way of disposing of waste. We do now, we can leave the
waste where it was created in dry-caste storage containment. So I have no
problem with that," he said.

--Jean Chemnick, jean_chemnick@platts.com