Washington (Platts)--17Jul2009

Some US House of Representatives Republicans on Thursday called on the
Department of Energy to suspend collection of nuclear waste fees given Energy
Secretary Steven Chu's decision to terminate the Yucca Mountain nuclear waste
repository program.

The Nuclear Energy Institute on July 8 made a similar request, asking
Secretary Chu in a letter to reconsider the collection program.

During a House Budget Committee hearing, "Budgeting for Nuclear Waste
Management," Florida Republican Connie Mack said it was unfair to ask his
constituents to pay into a waste fund that has been canceled.

He said the $1 billion in average interest generated annually by the
existing fund is enough to address the spending authority DOE is seeking for
the program in fiscal 2010.

Kim Cawley, a witness and director of the Congressional Budget Office's
natural and physical resources cost estimates unit, said in prepared testimony
that $29.1 billion was credited to the fund from 1983 through the end of
fiscal 2008.

The CBO estimates another $2 billion will be credited to the fund in
2009, including $1.2 billion in interest. The nuclear industry will pay
$750-800 million into the fund annually for the next decade if today's 104
nuclear reactors continue to generate power, he said.

Witnesses at the hearing did not say whether the government would suspend
fund payments.

Also at the hearing, Republican lawmakers were critical of DOE's decision
to scrap the Yucca program, questioning the rationale behind the decision, its
cost implications and potential impact on the country's nuclear energy growth.

However, Christopher Kouts, acting director of DOE's civilian radioactive
waste management office, repeatedly told lawmakers that he could not elaborate
on the administration's reasons for terminating Yucca, referring them instead
to Secretary Chu. Kouts said he is sure Chu's decision on Yucca is
"defensible."

The third witness at the hearing was Michael Hertz, deputy assistant
attorney general in the Department of Justice's civil division.

Idaho Republican Mike Simpson said Yucca Mountain, which would be located
in Nevada, is a "suitable, if not the best, location for storage." He
questioned why President Barack Obama's administration made the decision after
"only six weeks" in office.

But the office of Nevada Democrat Shelley Berkley, who is not a member of
the Budget Committee, circulated a statement after the hearing that expressed
her support for the demise of Yucca.

The statement says that "the nuclear industry and its supporters should
embrace this new path forward and stop blocking an end to more wasteful
spending on efforts to turn Nevada into a radioactive garbage dump."
--Randy Woods, randall_woods@platts.com