Skip to main content

The 2012 Budget for Nuclear Energy

congressCongress voted on an omnibus appropriations bill that basically funds the entirety of the federal government for the next year. Naturally, our interest lies with the nuclear energy portion of the Department of Energy’s budget.

The executive summary is that the total is more than requested by the Obama administration earlier this year; the accident in Japan has been acknowledged in the budget but how to proceed has been largely left to processes already in place – the NRC’s Near-Term task force, for example; and Yucca Mountain, dead or alive, is not funded.

Here are the details:

The appropriations bill provides $769 million for nuclear science and technology, higher than the president’s $754 million and a sharp increase from the $584 million approved initially by the Senate.

Of particular note is the restoration of $67 million for small reactor development and licensing, which the Senate had earlier zeroed out. Under a cost-shared government-industry program, DOE will select two designs to shepherd through initial NRC technical reviews and licensing.

The legislation provides $187 million for fuel cycle research and development programs, almost $34 million more than originally requested by the president. These programs are likely to become more central to the industry as DOE acts upon the recommendations of the Blue Ribbon Commission on America’s Nuclear Future, which will in January finalize its report on managing the back end of the nuclear fuel cycle.

A last-minute DOE request for funding support for USEC’s American Centrifuge Plant in Ohio failed to be included in the final bill, despite support from the Senate and the president. DOE and both the state’s Senators had sought funding for further development work on the uranium enrichment facility.

Funding for USEC could be revisited when Congress reconvenes in January.

The bill provides $59 million for the Advanced Fuels Program, an increase of $12 million from 2011, to accelerate development of new cladding materials for nuclear fuel.

Many defense-related nuclear energy items received increases over 2011 in a year marked by more stringent budgeting priorities. For example, defense environmental cleanup would receive $5 billion under the bill, $11 million more than in 2011. Nuclear nonproliferation would receive $2.3 billion, $110 million above the 2011 level; and naval reactors would receive $1.08 billion, $141 million higher than in 2011.

The appropriation for DOE is $25.7 billion, $2.1 billion more than what was approved by the House, but $3.9 billion below the Obama administration’s request.

Other funding includes:

  • $40 million for the Next Generation Nuclear Plant. The House committee had budgeted $63.5 million for this program.
  • $5 million for the Integrated University Program for DOE and $15 million for NRC. The House committee had budgeted these amounts for this jointly administered program, but the Senate originally had eliminated the funds.
  • $155 million for Idaho National Laboratory, $5 billion more than the administration’s request.
  • $1.027 billion to the NRC, about $11 million less than requested by the administration. Much of the NRC’s funding is paid by fees collected from licensees. Some $2 million of the appropriation is for a National Academy of Sciences study on lessons learned from the Fukushima Daiichi accident, as recommended by the Blue Ribbon Commission. For the second year running, no funds have been allocated for the Yucca Mountain project.

Comments

seth said…
Peanuts compared to the vast expenditures on worthless not so renewables and fossil fuels.

They should be ashamed of themselves.

Popular posts from this blog

Fluor Invests in NuScale

You know, it’s kind of sad that no one is willing to invest in nuclear energy anymore. Wait, what? NuScale Power celebrated the news of its company-saving $30 million investment from Fluor Corp. Thursday morning with a press conference in Washington, D.C. Fluor is a design, engineering and construction company involved with some 20 plants in the 70s and 80s, but it has not held interest in a nuclear energy company until now. Fluor, which has deep roots in the nuclear industry, is betting big on small-scale nuclear energy with its NuScale investment. "It's become a serious contender in the last decade or so," John Hopkins, [Fluor’s group president in charge of new ventures], said. And that brings us to NuScale, which had run into some dark days – maybe not as dark as, say, Solyndra, but dire enough : Earlier this year, the Securities Exchange Commission filed an action against NuScale's lead investor, The Michael Kenwood Group. The firm "misap...

Wednesday Update

From NEI’s Japan micro-site: NRC, Industry Concur on Many Post-Fukushima Actions Industry/Regulatory/Political Issues • There is a “great deal of alignment” between the U.S. Nuclear Regulatory Commission and the industry on initial steps to take at America’s nuclear energy facilities in response to the nuclear accident in Japan, Charles Pardee, the chief operating officer of Exelon Generation Co., said at an agency briefing today. The briefing gave stakeholders an opportunity to discuss staff recommendations for near-term actions the agency may take at U.S. facilities. PowerPoint slides from the meeting are on the NRC website. • The International Atomic Energy Agency board has approved a plan that calls for inspectors to evaluate reactor safety at nuclear energy facilities every three years. Governments may opt out of having their country’s facilities inspected. Also approved were plans to maintain a rapid response team of experts ready to assist facility operators recoverin...

Nuclear Utility Moves Up in Credit Ratings, Bank is "Comfortable with Nuclear Strategy"

Some positive signs that nuclear utilities can continue to receive positive ratings even while they finance new nuclear plants for the first time in decades: Wells Fargo upgrades SCANA to Outperform from Market Perform Wells analyst says, "YTD, SCG shares have underperformed the Regulated Electrics (total return +2% vs. +9%). Shares trade at 11.3X our 10E EPS, a modest discount to the peer group median of 11.8X. We view the valuation as attractive given a comparatively constructive regulatory environment and potential for above-average long-term EPS growth prospects ... Comfortable with Nuclear Strategy. SCG plans to participate in the development of two regulated nuclear units at a cost of $6.3B, raising legitimate concerns regarding financing and construction. We have carefully considered the risks and are comfortable with SCG’s strategy based on a highly constructive political & regulatory environment, manageable financing needs stretched out over 10 years, strong partners...