WASHINGTON, D.C., March
24, 1999— The federal government
could face up to $35 billion in legal damages and nuclear
power plants could begin to close prematurely unless Congress
passes comprehensive legislation to reform the federal nuclear
waste management policy, a top utility executive told a U.S.
Senate committee today.
"The Energy
Department has missed its 1998 deadline to begin moving used
fuel from more than 100 nuclear power plant and
defense-related sites, and there has been no real attempt by
the White House to meet this obligation," said Erle Nye,
chairman and chief executive at Texas Utilities Co. Texas
Utilities operates two reactors at the Comanche Peak nuclear
power plant.
"The legal
damages from 10 lawsuits filed against the federal government
could reach $4 billion, and the administration expects that
damages from all suits expected to be filed could total $35
billion," Nye added.
Along with
greater financial liability, Nye told the Senate Energy and
Natural Resources Committee, "The longer the federal
government's delay continues, the greater the risk that
nuclear power plants may shut down due to insufficient fuel
storage capacity."
Energy Secretary
Bill Richardson's recent proposal for the government to assume
ownership of used nuclear fuel—while leaving it at plant
sites—could indefinitely delay development of a permanent
disposal facility for used nuclear fuel. "We appreciate the
Secretary's intent, but his proposal is not appropriate as a
stand-alone concept because it doesn't move fuel to a central
storage facility and could leave the government without enough
funds to build a repository," Nye explained.
The value in
Secretary Richardson's proposal is that it opens a dialogue on
the need for federal reform, which Nye said should be focused
on the "comprehensive, sensible approach to fulfilling the
federal government's commitment" embodied in the Nuclear Waste
Policy Act of 1999 (S. 608). The legislation was introduced
March 15 by Sen. Frank Murkowski, chairman of the Energy and
Natural Resources Committee, and Sens Larry Craig (ID) Rod
Grams (MN) and Michael Crapo (ID).
"This reform
legislation does more than create certainty for fuel
acceptance and disposal," Nye explained. "It ensures adequate
funding through the life of the nuclear fuel management
program and provides a stringent, scientifically based health
and safety standard for the proposed repository at Yucca
Mountain, Nevada. S. 608 establishes a safe transportation
system for used fuel, with full participation for states and
tribal communities in designating shipping routes, and in
notification and training for emergency preparedness."
Nye told
senators that strong congressional support for a new U.S.
nuclear waste policy paves the way for the Administration to
join the reform effort and work for prompt passage of S. 608.
"Such legislation has passed in the last two Congresses, and
this support is a clear signal to the federal government that
it must fulfill its statutory obligation to accept used
nuclear fuel," he said.
"Nuclear waste
must be safely stored, and the industry is committed to
working with the committee, the Secretary of Energy and other
stakeholders to resolve this issue. The federal government
must meet its obligations to manage used nuclear fuel—it's the
right thing to do to meet our nation's energy and
environmental goals."
