Environmental coalition letter to Senate Appropriators opposing additional dirty energy loan guarantees

On July 21st, a coalition of ten national environmental groups, including Beyond Nuclear, wrote the Members of the U.S. Senate Appropriations Committee, urging that no additional dirty energy loan guarantees for the fossil fuels and nuclear power industries be included in the Fiscal Year 2011 Energy and Water Appropriations bill. Unfortunately, $10 billion in nuclear loan guarantees and $7 billion in fossil fuels loan guarantees were included in the bill, approved in committee on a party line vote on July 22nd.  By contrast, renewables and efficiency loan guarantees were capped at a maximum of $3.8 billion -- meaning the actual level could be lowered. It seems that not only is the U.S. Dept. of Energy favoring nuclear projects over others, but so are U.S. Senate Appropriators. However, our pressure may have headed off an amendment in committee that would have larded even more radioactive and dirty fossil fuels pork onto these loan guarantee figures.

Last February, the Obama administration requested $34 billion in additional nuclear power loan guarantees, to add to the $20.5 billion already approved in 2007.

Thus far, the full House has approved $9 billion of additional nuclear loan guarantees -- approved on the House floor on July 1st as a rider on the Fiscal Year 2010 Emergency Supplemental Appropriations bill, a bill intended to fund the wars in Iraq and Afghanistan, as well as disaster relief. However, on July 22nd, by a 51 to 46 vote, the Senate rejected this House language. $10 billion to keep teachers on the job, rather than nuclear loan guarantees, was the primary issue of difference between the two houses, however. But, this means that the $9 billion in nuclear loan guarantees will likely be dropped, as the House must either agree with already passed Senate language, or else the war funding and disaster relief appropriations bill will not pass at all.

Also, last week, the House Energy and Water Appropriations Subcommittee approved $25 billion in new nuclear loan guarantees, matched by $25 billion for renewables/efficiency. The full House Appropriations Committee has yet to act on the bill. This $25 billion nuclear loan guarantee figure from the House would have to be reconciled with the $10 billion nuclear loan guarantee figure from the Senate.

The fight would normally now go to a conference committee between House and Senate Appropriators for the FY2011 Appropriations bill. However, a more likely scenario is that a "continuing resolution" (a CR) will be passed by both houses of Congress, freezing spending levels at FY2010 levels (meaning no additional nuclear loan guarantees, yet). Then, after November's mid-term elections, an Omnibus Appropriations bill would be proposed on both house floors, which would then go to conference committee, if necessary due to any differences, this December for final approval, to set funding levels for the remainder of FY11.

This will be a very dangerous time to guard against additions of large amounts of nuclear loan guarantees. It was on just such an Omnibus Appropriations bill, on Dec. 23, 2007 -- when most Americans were more concerned about holiday celebrations than Capitol Hill shenanigans -- that the current $20.5 billion in nuclear loan guarantees were approved.

Thank you to all who contacted their U.S. Senators and Representative during the latest flurry of attempted nuclear power industry money grabs in the U.S. Congress. We will need to remain vigilant for the foreseeable future.