Nuclear Power Bill Advances

Legislation creating the “Nuclear Power Incentives Act” gained the approval of a state House committee today.

House Bill 1750, by state Rep. Scott Martin, would establish a review process for the Oklahoma Corporation Commission to consider nuclear power proposals and also creates a task force to consider tax changes that would encourage construction of a nuclear power plant in Oklahoma.

“The national drive for energy independence means we need to diversify production and it simply doesn’t make sense to leave anything off the table,” said Martin, R-Norman. “Nuclear power could safely generate a significant amount of low-cost electricity in Oklahoma.”

Under the bill, an electric utility would be able to file an application with the Oklahoma Corporation Commission seeking a determination of need to construct a nuclear power plant. If the Commission approves the application, the power plant’s costs would be subject to cost recovery rules promulgated by the Commission similar to existing rules for other power plants.

When determining whether there is a need for the nuclear power plant, the bill requires the Corporation Commission to consider the cost of power and energy from the nuclear power plant “compared to alternatives” and the benefits of fuel diversity.

The Corporation Commission would be required to respond to applications within 180 days of filing and the Commission’s final order would be reviewable on appeal to the Oklahoma Supreme Court.

House Bill 1750 also creates a nine-member task force to make recommendations on “an appropriate tax credit for entities investing in a nuclear power plant” in Oklahoma.

Among other things, the task force will determine if an existing tax credit for production and sale of electricity by zero-emission facilities should apply to nuclear power.

The task force would be required to make its recommendations no later than December 1, 2010.

“Adopting the right tax policy could make a nuclear power plant more feasible for Oklahoma utilities and the long-term benefits, such as lower electric bills for consumers, would more than offset the upfront cost to the state,” Martin said. “Nuclear power has a proven track record across the nation and all over the world and it’s time Oklahoma began looking at this potential energy source.”

There are currently 104 nuclear plants in the United States in 34 states, with none in Oklahoma. According to the Nuclear Energy Institute, there are 17 applications for 26 nuclear plants currently under consideration.
House Speaker Chris Benge and Martin recently toured a nuclear power plant in Arkansas.

More than 100 nuclear plants are being built or planned right now across the world, with about half in China, India and other developing nations. Argentina, Brazil and South Africa have plans to expand existing nuclear energy programs, and Vietnam, Thailand, Egypt and Turkey are currently looking into possible nuclear energy options.

In France, 80 percent of power comes from nuclear plants that have operated for years without any significant safety incidents. Over the years, Martin noted that nuclear plant design has become more standardized, thus safer and cheaper, making it a more viable energy source option.

House Bill 1750 passed out of the House Energy Committee today. It now proceeds to the floor of the Oklahoma House of Representatives.