Loan Guarantee Passes: Nuclear Renaissance on the Horizon

It’s about time.

For years, the United States has thrived on what is now an aging infrastructure built by previous generations. When lawmakers passed the fiscal 2008 Omnibus Appropriations bill, they pledged $20.5 billion in loans for the construction of new nuclear power plants. Under the bill, the federal government will make funds available to utilities to cover up to 80% of the construction costs. The $5 billion price tag associated with new power plants combined with hostile political environments has prevented new construction in the past.

Although the industry had sought $50 billion in loans, the passage of any bill containing provisions for nuclear energy shows that Washington is now serious about addressing the current energy crisis and meeting future energy demands. Nustart, Dominion, and Georgia Power have already submitted construction and operating license applications for new nuclear plants and a handful of other utilities have also made early preparations for construction. Although none of these companies have publicly committed to new construction, the loan program assures the nuclear industry that the long period of government hostility towards nuclear energy is over.

Since the Three Mile Island accident of 1979, nuclear energy in America has been stuck in the dark ages where fear of radiation exposure and lack of education on nuclear science has blinded the public and stifled growth in the sector. These fears proved to be unfounded as not one single injury or illness resulted from the TMI accident and the amount of radiation released to the public was less than 1 milirem (a fraction of the amount received during a chest X-ray). If nothing else, TMI sent a wake-up call to the industry that lead to drastic changes in safety policy, operator training, and government oversight. All of these changes have since served to decrease the threat posed to the public by nuclear energy.

This small piece of legislation represents the first step in what is already referred to as The Nuclear Renaissance. With the passage of the loan program, congress has vowed to change course in energy policy and now has paved the way for America’s nuclear industry to combat the growing energy crisis in a safe, clean, and economically viable manner. The effects of these new nuclear facilities will echo throughout America in the form of reduced utility bills for residents and businesses, thousands of new jobs, stimulated state and local economies, reduced vulnerability of the power grid, and a trend of infrastructure investment that is long overdue in the United States.

~Man Overboard