Implementation of EPACT 2005 Loan Guarantee Program by DOE

Press Release

Implementation of EPACT 2005 Loan Guarantee Program by DOE

The Energy Policy Act of 2005 included several important provisions to encourage the deployment of innovative energy technology or to reduce greenhouse gases. This could include new nuclear, clean coal, and cellulostic ethanol.

I understand that our appropriator friends have been responsible for slowing implementation of this program -- with the first funds appropriated as part of the 2007 Continuing Resolution.

Unfortunately, the DOE solicitation for pre-applications did not include nuclear.

A growing economy, such that of the United States, requires energy to fuel our homes and businesses. According the United States Energy Information Agency, electricity generation worldwide is expected to nearly double between 2002 and 2025.

As we seek to find environmentally-friendly ways to produce this electricity, I believe that nuclear power must play an important role in providing reliable, low cost, and emissions-free power.

This country has not had a new nuclear facility constructed in 30 years and if we want to be serious about carbon dioxide reductions, we need new nuclear. I am extremely concerned that nuclear was excluded from this pre-application request.

I would also like to express my concern a decision made by the Office of Management and Budget that it will guarantee only 64 percent of a project rather than the statutorily directed 80 percent. This can result in a significant change in economics of a project, ultimately rendering the loan guarantees ineffective.

Mr. Chairman, thank you again for the hearing this afternoon. I look forward to hearing from our witnesses.

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