House appropriations panel rejects Yucca Mt. amendment

Washington (Platts)--16Jul2010/657 am EDT/1057 GMT



An appropriations subcommittee in the US House of Representatives Thursday rejected an amendment that would have kept the Department of Energy's Yucca Mountain repository program alive in fiscal year 2011 with a $100 million infusion of funds.

The amendment, offered by Representative Rodney Frelinghuysen, Republican-New Jersey, would have taken $100 million from DOE's energy efficiency and renewable energy program and given it to the Nuclear Regulatory Commission to continue its consideration of the repository's license application.

Under the amendment, DOE would have been obligated to continue the Yucca Mountain licensing process "concurrently with any regulatory or judicial appeals until such time as the [Energy Secretary] is granted authority to withdraw the license application."

President Barack Obama's administration plans to terminate the program and the DOE office that manages it when FY-10 ends September 30. The administration did not request any funding for either for next fiscal year.

Frelinghuysen told his colleagues that his amendment is aimed at ensuring NRC has the resources to continue the licensing process.

But US Representative Ed Pastor, acting chairman of the House Appropriations Subcommittee on Energy and Water Development, said it would be premature to funding for licensing at this time.

"If the NRC comes forth later in the fiscal year and says it has to continue the licensing process, the subcommittee will look at how much is needed to go forward" at that time, Pastor said.

Representative Mike Simpson, an Idaho Republican, reminded his colleagues that an "overwhelming majority" of the subcommittee, Democrats and Republicans, have supported the Yucca Mountain repository project in Nevada.

Simpson added that Obama might be more likely to sign broad legislation, such as the energy and water funding bill, that contains funding for the Yucca Mountain project than a separate measure.

The amendment was defeated in a 10-6 vote along party lines, as was a separate amendment that would suspend collection of what is known as the nuclear waste fee until DOE begins removing spent nuclear fuel from power reactor sites. Simpson said it would save nuclear utility ratepayers millions of dollars a year.

Collectively, ratepayers now pay $750 million a year into the Nuclear Waste Fund to bankroll the disposal of power reactor spent fuel. Nuclear utility customers are charged 1 mill, one-tenth of a cent, for every kilowatt-hour of nuclear-generated electricity sold.

Republicans on the subcommittee said that eliminating the fee, which is currently counted against the federal budget deficit, would increase the US deficit by $750 million a year.

Pastor cut discussion of the amendment short by saying it amounted to authorizing language on an appropriations bill, which is not allowed under House rules.

--Elaine Hiruo, elaine_hiruo@platts.com