Legislation allowing deeper consideration of the nuclear power option in Oklahoma passed the state House today.

House Bill 1750 creates the “Nuclear Power Incentives Act” and establishes a review process for the Oklahoma Corporation Commission to consider nuclear power proposals. The legislation also creates a task force to consider tax changes that would encourage construction of a nuclear power plant in Oklahoma.

“Our state was built on the oil and gas industry, and those local sources will continue to play a vital role in our energy future,” said Rep. Scott Martin, author of the bill. “But if Oklahoma is going to remain on the energy forefront globally, we must continue to diversify our portfolio to include sources that exist or can be created locally, including nuclear power.”

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.

“Nuclear power could have long-term benefits for our state, including electric ratepayers,” said Martin, R-Norman. “There is no reason why other states and nations should continue to take advantage of this energy option without it being at least considered in our state.”

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 Rep. Martin along with other members toured a nuclear power plant in Arkansas earlier this year.

“Nuclear power is a safe way to generate a significant amount of low-cost electricity and should be an option we consider in Oklahoma,” said Benge, R-Tulsa. “I don’t think we know yet if nuclear power is a viable option for our state, but we should not have regulatory barriers that make it harder to consider the option.”

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.

“It is projected that world energy consumption will increase 54 percent from 2001 to 2025. In order to secure a growing economy, we need to have a sufficient amount of power to meet our growing electrical needs,” said Benge.

Martin said he is working with ratepayers, utilities, environmental groups and other interested parties on the legislation.

“This bill is definitely still a work in progress,” said Martin. “My hope is that by the end of session we have legislation everyone can support.”

House Bill 1750 passed the House today with a vote of 60-19. It now proceeds to the state Senate for consideration.