Supporters call it smart energy policy. Critics have dubbed it "Solyndra on steroids."
An energy bill that President Bush signed into law eight years ago authorized up to $17.5 billion in government-guaranteed loans for building nuclear-power plants. Taxpayer backing was intended to reduce the cost of borrowing for power companies, making it more feasible for them to finance construction of reactors, which are multibillion-dollar projects.
The law allowed the Department of Energy to charge a fee to cover the cost to taxpayers of the guarantees, though critics have said the fee is too low.
While President Obama distanced himself from many of the policies of his predecessor, he proposed another $36 billion in government-backed loans to build reactors. Generating more electricity from nuclear power and less from coal and natural gas would reduce greenhouse-gas emissions, a priority for the president.
But critics of the guarantees, including one of today's columnists, contend that building nuclear plants has become too expensive and too risky to put taxpayers the hook.
The costs and risks of reactors are a sore spot for Floridians for another reason. A 2006 state law lets utilities charge their customers up-front to develop new nuclear plants -- even if the utilities later cancel those projects.
Supporters of the guarantees, including today's other columnist, argue it's good public policy to give nuclear power a boost because it is by far the nation's most significant source of carbon-free power.
Read more about it
*Taxpayers for Common Sense makes its case against loan guarantees at taxpayer.net. Search "nuclear loan guarantees."
*The nuclear industry's trade association argues in favor of guarantees at nei.org. Under "knowledge center," click on "backgrounders," then "white papers."
*The nonpartisan Congressional Budget Office analyzed the potential cost to taxpayers of nuclear loan guarantees. A summary is at cbo.gov/publication/42211.
Original Publication URL: http://www.orlandosentinel.com/news/opinion/os-ed-front-burner-nuclear-loans-intro-20130912,0,1190008.story
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