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NUCLEAR INDUSTRY CORPORATE WELFARE UNDER ATTACK



  69 HOUSE MEMBERS URGE TERMINATING ADVANCED LIGHT WATER REACTOR
  ENERGY AND WATER APPROPRIATIONS SET TO MARKUP BILL NEXT WEEK
  
  In a May 20 letter sent to Energy and Water Appropriations
  Subcommittee Chairman John Myers (R-IN), 69 House members called
  for terminating the Advanced Light Water Reactor (ALWR) program
  and providing no additional funding in fiscal year 1997. 
  Representatives David Obey (D-WI) and Mark Foley (R-FL)
  circulated the letter and urged their colleagues to oppose
  additional support because "continuing to appropriate funds for
  the ALWR program sends the wrong message that this Congress is
  willing to overlook subsidies to mature, profitable industries
  while asking worthwhile constituencies to sacrifice in order to
  balance the budget."   
  
  The House Energy and Water Appropriations Subcommittee is
  preparing to markup a spending bill towards the end of next
  week.  Chairman Myers has been a strong supporter of the ALWR
  program in the past and is expected to provide additional funds
  in fiscal year 1997.
  
  The House Budget resolution, passed last week, also contained
  specific language in support of continued funding for the ALWR
  program alongside deep cuts in spending on renewable energy
  technologies.  The budget resolution language was written by
  Budget Committee Vice-Chairman Robert Walker (R-PA) who has been
  an outspoken advocate for the ALWR program and other federal
  subsidies for companies involved with nuclear power development.
  
  PLEASE CONTACT YOUR REPRESENTATIVE IF THEY SIGNED ONTO THE
  ENCLOSED LETTER AND THANK THEM FOR THEIR SUPPORT IN CUTTING
  CORPORATE WELFARE FOR THE NUCLEAR POWER INDUSTRY
  
  The Capitol switchboard can be reached at 202-224-3121.
  
  To receive a factsheet or testimony on the ALWR program, contact
  Matthew Freedman (cmep@citizen.org / Phone: 202-546-4996).
  ---------------------------------------------------------------
  May 20, 1996
  
  Chairman John T. Myers
  Energy and Water Appropriations Subcommittee
  2362 Rayburn House Office Building
  Washington, D.C. 20515-6020
  
  Dear Mr. Chairman:
  
       We are writing to express our strong opposition to
  providing new funds for the Department of Energy's (DOE)
  Advanced Light Water Reactor (ALWR) program in the fiscal year
  1997 Energy and Water Appropriations bill.  This program,
  created under the Energy Policy Act (EPACT) of 1992, is due to
  be completed at the end of fiscal year 1996 and has received
  more than $230 million in federal support over the past five
  years.  While many of us have supported nuclear research and
  development in the past, this year's tight budget priorities and
  the lack of private sector interest in building new nuclear
  reactors make it difficult to understand why DOE wants to expand
  the program beyond its original mission.
  
       Already, one of the main recipients of the ALWR program
  money, General Electric, has announced that it is canceling its
  Simplified Boiling Water Reactor (SBWR) after receiving $50
  million from DOE 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."  The remaining reactor scheduled to receive ALWR
  support, Westinghouse's AP-600, is a similarly sized design and
  faces the same market conditions that led GE to cancel the SBWR.
  
       Last year, proponents argued that FY 96 funding was
  necessary to complete the fifth year of a five-year program. 
  This year, DOE outlined plans to request funding for the next
  three fiscal years.  Extending this program runs in direct
  violation of EPACT, which specified that: designs must receive
  Nuclear Regulatory Commission (NRC) certification by the end of
  FY 96, no company could receive money for more than four years
  and manufacturers are required to certify that they fully intend
  to construct these reactors in the United States.  The remaining
  ALWR design is not due to receive NRC certification until at
  least 1998 and has already benefitted from at least four years
  of support.  Furthermore, the reactor vendors benefitting in
  this program have abandoned domestic markets and are focusing
  exclusively on exports to Asia.  Westinghouse, for example,
  identifies China as a prime market for its design despite the
  fact that it they are currently prohibited from exporting the
  AP-600 to that country.
  
       One troubling aspect of the ALWR program is DOE support for
  NRC design certification or generic licensing of advanced
  reactors. According to testimony delivered by Westinghouse
  before your Subcommittee this year, a significant portion of
  DOE's design certification support covers user fees charged by
  NRC for the licensing of the AP-600.  This is a highly
  questionable use of taxpayer dollars.  The fact that it benefits
  a mature, developed and profitable industry makes it all the
  more egregious.
  
       We are not asking you to terminate funding for the ALWR
  program as part of an anti-nuclear agenda.  The federal
  government has spent more than $47 billion (in $1995) on nuclear
  fission R&D over the last five decades and Congress has
  fulfilled its commitment to support Advanced Light Water
  Reactors.  If the designs supported by DOE for the past five
  years are promising, then the private sector should willingly
  invest in their development, deployment and promotion.  If not,
  then it is inappropriate to provide new taxpayer subsidies to
  support products that have no market potential.
  
       This Congress should be serious about cutting unnecessary
  corporate welfare.  Let's allow the marketplace to determine
  whether or not these designs are a sound investment and avoid
  having the federal government become the funder of last resort.
  
                                Sincerely,
  
  [members organized by state]
  
  Earl F. Hilliard (D-AL) 	Matt Salmon (R-AZ) 
  George Miller (D-CA) 		Nancy Pelosi (D-CA) 
  Ronald V. Dellums (D-CA) 	Pete Stark (D-CA) 
  Anthony C. Beilenson (D-CA) 	Henry A. Waxman (D-CA) 
  Matthew G. Martinez (D-CA) 	Lucille Roybal-Allard (D-CA) 
  Esteban E. Torres (D-CA) 	Edward R. Royce (R-CA) 
  Dana Rohrabacher (R-CA) 	David E. Skaggs (D-CO) 
  Christopher Shays (R-CT) 	Mark Adam Foley (R-FL) 
  Harry Johnston (D-FL) 		John Lewis (D-GA) 
  Nathan Deal (R-GA) 		Patsy T. Mink (D-HI) 
  Greg Ganske (R-IA) 		Luis V. Gutierrez (D-IL)
  Sidney R. Yates (D-IL) 		Lane Evans (D-IL) 
  Mark E. Souder (R-IN) 		John N. Hostettler (R-IN) 
  John W. Olver (D-MA) 		Richard E. Neal (D-MA) 
  Barney Frank (D-MA) 		Martin T. Meehan (D-MA) 
  Peter G. Torkildsen (R-MA) 	Edward J. Markey (D-MA) 
  Joseph P. Kennedy, II (D-MA) 	Gerry E. Studds (D-MA) 
  Fred Upton (R-MI) 		Dick Chrysler (R-MI) 
  Dale E. Kildee (D-MI) 		Lynn N. Rivers (D-MI)
  John Conyers, Jr. (D-MI) 	David Minge (DFL-MN) 
  Bruce F. Vento (DFL-MN)		Martin Olav Sabo (DFL-MN) 
  Collin C. Peterson (DFL-MN) 	James L. Oberstar (DFL-MN) 
  William L. Clay (D-MO) 		Frank Pallone, Jr. (D-NJ) 
  Donald M. Payne (D-NJ) 		Dick Zimmer (R-NJ) 
  Floyd H. Flake (D-NY) 		Jerrold Nadler (D-NY)
  Major R. Owens (D-NY) 		Nita M. Lowey (D-NY) 
  Maurice D. Hinchey (D-NY)	Steve C. LaTourette (R-OH) 
  Steve Largent (R-OK) 		Tom Coburn (R-OK) 
  Elizabeth Furse (D-OR) 		Peter A. DeFazio (D-OR) 
  Patrick J. Kennedy (D-RI) 	Marshall (Mark) Sanford (R-SC) 
  Tim Johnson (D-SD) 		Lloyd Doggett (D-TX) 
  Bernard Sanders (I-VT) 		Norman D. Dicks (D-WA) 
  Jim McDermott (D-WA) 		Scott L. Klug (R-WI) 
  Gerald D. Kleczka (D-WI) 	Thomas M. Barrett (D-WI) 
  David R. Obey (D-WI) 
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