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SCIENCE COMMITTEE TO MARKUP ENERGY BILL
URGENT ALERT
SCIENCE COMMITTEE TO MARKUP ENERGY AUTHORIZATION BILL NEXT WEEK
NUCLEAR PROGRAMS TO RECEIVE BOOST, RENEWABLES TARGETED FOR DEEP CUTS
The House Science Committee is preparing to mark up an energy
authorization bill on Wednesday, April 24, that will take energy
policy back in time, placing high priority on nuclear fission
and fusion programs at the expense of renewable energy and efficiency
technologies. Though the authorization bill does not contain
actual spending for these programs, it does send a strong message
to the Appropriations Committee on how to prioritize support for
the various energy technologies.
On the nuclear side, the bill will provide $40 million in new
money for the Advanced Light Water Reactor (ALWR) program, which
is being targeted for termination by a coalition of taxpayer,
environmental and consumer groups. A textbook example of
corporate welfare, the ALWR program supports work by General
Electric, Westinghouse and ABB/Combustion Engineering to design
and receive Nuclear Regulatory Commission certification for
evolutionary nuclear reactor designs. See the attached
materials for more information on why this program should not
receive additional funds.
Renewable energy and energy efficiency programs, long derided by
Science Committee Chair Bob Walker (R-PA), are likely to be cut
substantially from both the Clinton Administration's request and
current year funding levels. Reductions in renewable energy and
efficiency programs will be used to shift support to nuclear
fission and fusion efforts. The bill is said to contain the following
funding levels (in millions):
FY'1996 Science '97 Change
RENEWABLE ENERGY $272.9 $191.3 -30%
ENERGY EFFICIENCY $402.2* $230.1 -43%
*FY'96 funding for energy efficiency programs, found in the
Interior Appropriations bill, has been done by continuing
resolutions and is still not signed into law due to budget
negotiations between Congress and the White House.
If you are represented by one of the following Congressional
members (or you live in their state), urge them to oppose
continued funding for the Advanced Light Water Reactor program
and support renewable energy and efficiency programs.
THE FOLLOWING MEMBERS SIT ON THE SCIENCE COMMITTEE:
---------------------------------------------------------
Robert E. (Bud) Cramer, Jr. (D-AL) Matt Salmon (R-AZ)
Bill Baker (R-CA) Zoe Lofgren (D-CA)
Andrea Seastrand (R-CA) Jane Harman (D-CA)
George E. Brown, Jr. (D-CA) Ken Calvert (R-CA)
Dana Rohrabacher (R-CA) Dave Weldon (R-FL)
Mark Adam Foley (R-FL) Alcee L. Hastings (D-FL)
Harris W. Fawell (R-IL) Tim Roemer (D-IN)
Todd Tiahrt (R-KS) Mike Ward (D-KY)
John W. Olver (D-MA) Roscoe G. Bartlett (R-MD)
Constance A. Morella (R-MD) Vernon J. Ehlers (R-MI)
James A. Barcia (D-MI) Lynn N. Rivers (D-MI)
Gil Gutknecht (IR-MN) David Minge (DFL-MN)
William P. Luther (DFL-MN) Karen McCarthy (D-MO)
Harold L. Volkmer (D-MO) Sue Myrick (R-NC)
Steven H. Schiff (R-NM) Sherwood Boehlert (R-NY)
James A. Traficant, Jr. (D-OH) Steve Largent (R-OK)
Curt Weldon (R-PA) Paul McHale (D-PA)
Robert S. Walker (R-PA) Michael F. Doyle (D-PA)
Lindsey O. Graham (R-SC) Zach Wamp (R-TN)
Van Hilleary (R-TN) Bart Gordon (D-TN)
John S. Tanner (D-TN) Ralph M. Hall (D-TX)
Joe Barton (R-TX) Steve Stockman (R-TX)
Lloyd Doggett (D-TX) Sheila Jackson-Lee (D-TX)
Eddie Bernice Johnson (D-TX) Thomas Davis, III (R-VA)
F. James Sensenbrenner (R-WI) Barbara Cubin (R-WY)
To find out how each of these members has voted on energy issues
over the last several years, visit the Critical Mass web page
(http://www.citizen.org/CMEP) and check out the Congressional
Voting Index.
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AFTER FIVE YEARS OF SUBSIDIES, IT'S TIME TO END THE
Advanced Light Water Reactor Program
The Advanced Light Water Reactor program, authorized under the
Energy Policy Act of 1992, is run by the U.S. Department of
Energy (DOE) in collaboration with the Advanced Reactor
Corporation to fund the efforts of reactor vendors to design,
engineer and obtain regulatory approval for new evolutionary
nuclear reactors. Between FY'1992-96, DOE has provided over
$275 million to this consortium. Companies benefiting from this
program include General Electric, Westinghouse and Asea Brown
Boveri/Combustion Engineering. Consider the following problems:
NUCLEAR FISSION HAS RECEIVED EXTENSIVE SUBSIDIES
-- From 1948 to 1995, nuclear fission received over 50%
($47.2 billion in $1995) of all federal energy R&D support. Of
the total, $27.1 billion (in $1995) has been provided since
1973, despite the absence of successful new orders for reactors
during these 23 years.
LACK OF UTILITY INTEREST IN NUCLEAR POWER
-- No American utility has successfully ordered a nuclear
power plant since 1973.
-- In the most recent poll conducted by the Washington
International Energy Group, 89% of utility executives surveyed
said that their company would never consider ordering a nuclear
power plant and only 8% believed that there would be a
resurgence of nuclear power. The study concluded that "The
sharp decline in the number of respondents expecting a
resurgence of nuclear power is significant. It leaves little
hope that new nuclear generation will remain an option for
utilities in a time frame that has any practical significance."
-- General Electric announced in February that it was
abandoning efforts to develop the SBWR design, which received
$50 million from DOE through the ALWR program, due to concerns
that "extensive evaluations of the market competitiveness of a
600 MWe size Advanced Light Water Reactor have not established
the commercial viability of these designs." Westinghouse's
AP-600, scheduled to receive support from the ALWR program
between FY'1997-99, is also a 600 MW design.
REGULATORY SUBSIDY
-- Money from the ALWR program goes towards assisting
companies to receive "design certification" approval from the
U.S. Nuclear Regulatory Commission. In its 1995 report, the
Advanced Reactor Corporation specifically calls for additional
DOE funding to cover NRC user fees charged for evaluating the
safety of new reactor designs. In testimony to the House
Appropriations Committee, Westinghouse asked for $10 million in
FY'1997 for design certification, $7 million of which would be
spent on NRC user fees. Taxpayers should not cover the NRC fees
incurred by large corporations to license their reactors.
ALWR PROGRAM AUTHORIZATION EXPIRED IN FY'1996
-- The Energy Policy Act of 1992 (EPACT) (42 U.S.C.A.
13493(b)) authorized $100 million in federal support for
"first-of-a-kind-engineering" (FOAKE) of two ALWR designs --
General Electric's ABWR and Westinghouse's AP600. Between
FY'92-FY'95, approximately $92.3 million was appropriated for
this program. Appropriations in FY'96 put the program over
authorized levels. DOE's contract with the Advanced Reactor
Corporation for FOAKE is set to expire on September 30, 1996.
-- According to EPACT (42 U.S.C.A. 13493(a)), design
certification support should be provided for "advanced light
water designs which, in the judgement of the Secretary [of
Energy], can be certified by the [Nuclear Regulatory] Commission
by no later than the end of fiscal year 1996."
-- Westinghouse's AP-600 reactor is not scheduled to
receive design certification until FY'1998.
CORPORATE WELFARE
-- The companies receiving support under this program
include General Electric ($60 billion in 1994 revenues),
Westinghouse ($8.8 billion in 1994 revenues) and Asea Brown
Boveri/Combustion Engineering ($4.3 billion in 1994 revenues).
These companies can afford to bring new products to market
without taxpayer subsidies.
OPPOSITION BY CONSUMER, ENVIRONMENTAL, TAXPAYER GROUPS, CONGRESS
AND THE PUBLIC
-- A coalition of consumer, environmental and taxpayer
groups recommended terminating further support for the ALWR
program in the 1995 and 1996 "Green Scissors" reports.
-- An amendment offered by Representative David Obey (D-WI)
to the FY'96 Energy and Water Appropriations bill that would
have terminated the ALWR program narrowly failed on a 191-227
vote.
-- In a new poll of registered voters conducted in
December, 1995, by Reagan/Bush pollster Vince Breglio, over 71%
of those surveyed opposed government funding for the development
of a new generation of nuclear reactors.
ALWRs ARE DESIGNED FOR EXPORT AND POSE A PROLIFERATION RISK
-- These reactors, if built at all, will likely be sold to
emerging East Asian nations. As reprocessing technologies
become more widely available, greater numbers of nations with
nuclear power plants may be able to extract plutonium from spent
light water reactor fuel. Promoting the export of new nuclear
reactors through the ALWR program undermines U.S.
non-proliferation policy.
-- Many developing countries have used so-called "peaceful"
nuclear power programs as cover for nuclear weapons development.
Given the many examples of nations diverting nuclear materials
from civilian power programs to military efforts, it is
unrealistic to expect that international oversight will ensure
that safeguards are maintained.
DESIGNING ALWRs FOR EXPORT VIOLATES THE INTENT OF EPACT
-- The Energy Policy Act of 1992 stipulates that the
recipients of any ALWR money must certify to the Secretary of
Energy that they intend to construct and operate a reactor in
the United States (42 USCA 13493).
-- The Nuclear Energy Institute (NEI), in a 1995 letter to
Congress, wrote that "the ALWRs are prime candidates for orders
in Southeast Asia." Nuclear Energy Insight, NEI's newsletter,
reported that "all three [ALWR] designers see their most
immediate opportunities for selling their designs in Pacific Rim
countries."
-- Westinghouse has identified only two markets for its
AP-600 design -- China and Indonesia. Currently, there is a ban
on exporting nuclear technologies to China.
-- The Tokyo Electric Power Company began construction last
year on two General Electric ABWRs in Japan. ABB/CE's System
80+, another ALWR design, was proposed to the Taiwan Power
Company in response to their international bid specification.
Elements of the System 80+ design have already been incorporated
into newly completed reactors in South Korea.
-- No utility has made any plans to build an ALWR in the
United States.
TERMINATING THE ALWR PROGRAM WILL NOT JEOPARDIZE COST RECOVERY
-- Under the terms of the cooperative agreement between the
Department of Energy and the Advanced Reactor Corporation, DOE
is entitled to recover program costs from the royalties of ALWRs
sold even if the program is terminated ahead of schedule.
According to the terms of the contract, "if the cooperative
agreement is terminated, this Recoupment Agreement shall become
effective on the date the Cooperative Agreement is terminated."
-- DOE has not received any cost recovery for General
Electric's sale of the first two ABWRs to Japan.
COMPANIES DEVELOPING ALWR DESIGNS
General Electric ABWR
Westinghouse AP600
ABB/Combustion Engineering System 80+
FOR MORE INFORMATION, CONTACT
Matthew Freedman at Public Citizen, 215 Pennsylvania Avenue, SE,
Washington, DC 20003
Phone 202-546-4996 / Fax 202-547-7392 / Internet:
cmep@citizen.org
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