Energy
Secretary Stephen Chu made the case this week for $36 billion
in new loan guarantees for nuclear plants in the Department of
Energy's proposed 2012 budget, while at the same time nearly halving
funds for the department's Fossil Energy Office.
The proposal underscores the Obama
administration's goal to generate 80 percent of the country's
electricity from clean sources by 2035. While the section of the
proposed budget that covers nuclear energy research and development
spending, at $853 million, is $5 million less than what Congress
actually appropriated last year, the Nuclear Energy Institute gave
the budget a conditional thumbs up.
“We greatly appreciate the
administration’s continued commitment to nuclear energy as an
important part of a clean energy portfolio,” NEI's senior vice
president for governmental affairs said in a statement.
As the administration embraced nuclear
power and other non-carbon energy sources, it also used the proposed
DOE budget to take a swipe at federal funding for fossil fuels and
boost renewable energy. The 2012 budget for the Fossil Energy Office
would shrink from $928 million to $511 million and eliminate several
programs. Meanwhile, DOE and the Interior Department recently
announced $50 million in projects over five years to develop
off-shore wind power on the Atlantic coast.
All proposals in the president's budget
will face tough congressional scrutiny in the coming months. If they
make it through the appropriations process, existing and proposed nuclear plant loan guarantees would total $54.5 billion. According to
a statement by DOE, that could support 6 to 8 new power plants.
While NEI supports expanded loan
guarantees, the group's statement on the 2012 DOE budget also makes
note of its opposition to the proposed reinstatement of the Uranium Enrichment Decontamination and Decommissioning tax.