The Global Nuclear Energy
Partnership (GNEP) will build on
the recent advances made by the
President and Congress to stimulate new
nuclear plant construction in the U.S. This
will be accomplished by demonstrating the
success of the streamlined regulations for
siting, constructing and operating new
nuclear plants through the Nuclear Power
2010 program, and by implementing
incentives enacted through the Energy
Policy Act of 2005. At 20 percent of the
total electricity supply in the nation, nuclear
power is the second largest source of
domestic electricity, while 70 percent comes from fossil burning fuels (coal, natural gas
and oil). Increasing the mount of
electricity generated by nuclear power is
critical to moving the nation toward a more
sustainable and secure energy future.
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Nuclear Power is the Second Largest Source of U.S. Electricity (Energy Information Administration, 2003) |
The Public Sector’s Role in Energy
Security
The May 2001 National Energy Policy
recommended expanding long-term U.S.
energy independence and reliability,
including diversifying supply. It also called
for expanding nuclear power as a key
energy source for long-term energy security. The Energy Policy Act of 2005 was
the first comprehensive energy legislation in
over a decade. It authorized funds for
implementing the Nuclear Power 2010
program and established the Standby
Support program.
The Nuclear Power 2010 program is a joint
government/industry, cost-shared effort to
identify sites for new nuclear power plants,
develop and bring to market advanced
standardized nuclear power plant designs, and
demonstrate streamlined regulatory processes.
The Standby Support program is a form of
federal risk insurance to encourage “first
movers” to adopt new reactor designs by
pro-tecting them against regulatory-related
delays or litigation that delays full-power
operations. Additionally, the Energy Policy
Act of 2005 contains provisions for
production tax credits for advanced nuclear
facilities and for loan guarantees for low-emission
energy production technologies.
An Improved Regulatory Framework
The new regulatory system would allow
industry to apply for Early Site Permits that
pre-qualify a site for potential nuclear power
plants and then for combined Construction
and Operation Licenses (COLs) to build and
operate new, advanced plants with less risk
resulting from regulatory or litigation delays.
The protection for “first movers” provides an
insurance policy against delays beyond the
control of the power company and only
applies to reactor designs approved after
December 31, 1993. The first two reactors
that receive a COL and start construction
would be eligible for up to $500 million in
delay protection; the next four reactors would
be covered at 50 percent, up to $250 million
of delay protection. The government would
not cover the cost of any delay resulting from
failure of the reactor owner to follow laws
and regulations, events under the control of
the owner or normal business risks.
Showing That New Plants Can Be Built
The Department expects that the first three
Early Site Permits will be issued in 2007,
potentially leading to the first COL
submittal from industry in 2007-2008 and
the first power company decision to proceed
with construction by 2010.
The final rule for Standby Support
provisions of the Energy Policy Act of
2005, and aimed at protecting first movers,
is expected in 2006.
The Department is cost sharing the preparation
of two COLs for two consortia. Collectively,
these two teams represent the operators of two
thirds of the nuclear plants in the U.S. today.
Investing in the first few new nuclear power
plants will demonstrate a streamlined
process for building nuclear power plants,
pave the way for future expansion of
nuclear power and promote U.S. energy and
economic security. The applications are
planned for submittal to NRC in 2007 and
industry is planning issuance in 2010.
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