Iowa nuclear power plan okayed; Senate passage expected
Legislation to create a regulatory framework for small-scale nuclear energy production moved to the full Senate by the narrowest of margins.
Sen. Matt McCoy
House File 561, which would direct MidAmerican Energy to make seek approval of a nuclear power plant, was approved by the Senate Commerce Committee 8-7. It is expected to fare better in the full Senate where backers believe it has broader bipartisan support.
Two Democrats and six Republicans voted for the bill, which if approved will go back to the House where it was approved last year. Six Democrats and a Republican opposed the bill.
The bill’s floor manager, Commerce Committee Chairman Matt McCoy, D-Des Moines, urged senators to support the plan that will allow MidAmerican to “walk this thing around Wall Street … (and) raise some money.”
Sen. Joe Bolkcom
However, Sen. Joe Bolkcom, D-Iowa City, argued it’s not investors, but ratepayers, who will assume the risk of the project.
“This puts all the risk on ratepayers … on seniors, small businesses, families, farmers in a way that we shouldn’t do,” he said.
Bolkcom also called it “bad energy policy” that ignores Iowa’s strength as a producer of energy from renewable sources.
“This will soak up all the money” that otherwise might be invested in renewable technologies,” he said. “Iowans won’t have much appetite to spend on other things if we spend $2 billion on this.”
It’s not about just energy, McCoy said. He painted a rosy picture of Iowa’s nuclear-power future, especially its nuclear-powered economy.
Not only is nuclear safe – safer than coal mining which has claimed tens of thousands of lives, McCoy said — but its benefits will extend to higher education, where students seek degrees in nuclear engineering and related fields while community colleges teach the training needed to operate and maintain the plant.
Then there’s the payroll — as much as $750 million for as many as 1,000 employees during the multi-year construction phase. Once built, the plant, which is likely to cost $1.5 billion, would have 500 permanent employees, McCoy said.
Property taxes on the plant would be distributed to all counties where MidAmerican does business, he added.
Much of the discussion dealt with the role of the Iowa Utilities Board in protecting ratepayers when the Legislature has directed a private company to make application for approval of a nuclear power plant.
McCoy offered an amendment to require the IUB to conduct a review of the utility’s expenditures each year to make sure they fell within a pre-determined cap and were “rational and prudent.”
While Bolkcom said the amendment moved the bill in the right direction, he suggested limiting the amount that could be charged consumers. Under McCoy’s plans, he said, the cap could be $100 or $1 million so it’s really important to know what the cap is.”
His amendment to McCoy’s was defeated. McCoy’s annual IUB review was added to the bill.
Bolkcom questioned the rush to approve the bill even before MidAmerican completes a three-year feasibility study the Legislature required.
“This is a tough issue … an important issue … a 1,000-year decision,” Bolkcom said.
It’s also a plan to that could attract more than $1 billion of investment in Iowa, create jobs, diversify the state’s energy portfolio and provide energy for generations to come, McCoy argued.
In the end, the committee voted to move the bill to the full Senate without recommendation.
“We’re saying this isn’t the be all and end all” McCoy explained. “We’re going to have a full and faithful debate and consider amendments.”
In a related matter Tuesday, Swati Dandekar, a former Democratic senator from Marion who was a sponsor of the legislation, was confirmed as a member of the IUB. However, Bolkcom, Courtney and Beall were among six Democrats who voted against her confirmation.
The vote:
For — Those voting for HF 561 were Democrats McCoy, and Sen. Tom Rielly, and Republican Sens. Bill Anderson, Pierson, Rick Bertrand, Sioux City, Randy Feenstra, Hull, Steve Kettering, Lake View, Pat Ward, Clive, and Brad Zaun, Urbandale. Feenstra voted “no,” but then changed his vote.
Against — Bolkcom and fellow Democratic Sens. Daryl Beall, Fort Dodge, Tom Courtney, Burlington, Liz Mathis, Cedar Rapids, Brian Schoenjahn, Arlington, Joe Seng, Davenport, and Mary Jo Wilhelm, Cresco.
Earlier March 13:
DES MOINES – Legislation to create a regulatory framework for the approval and regulation of a small-scale nuclear energy plant moved closer to winning the approval of the Senate Commerce Committee, but its outcome remains in doubt.
Sen. Matt McCoy
The committee voted 10-5 to approve an amendment by Chairman Matt McCoy, D-Des Moines, which he said addressed consumer protection concerns and make the bill attractive to more committee members.
“Is it a perfect answer? No,” McCoy said about his amendment. However, it’s a “massive improvement” over the version of HF 561 approved by the House last year.
However, some senators who “yes” votes on the amendment indicated it shouldn’t be assumed there are 10 votes – or even eight – to send House File 561 to the full Senate.
Sen. Joe Bolkcom, D-Iowa City, opposed McCoy’s amendment and has offered a handful of his own to perfect the bill.
Sen. Joe Bolkcom
McCoy’s amendment does little to improve the bill, Bolkcom said. “Consumers are still going to pay upfront,” he said, and there’s little incentive for MidAmerican to control costs if they know they can recover those costs with a rate of return.
“Customers are still on the hook,” Bolkcom said. “This is bad energy policy. This isn’t our future.”
His opposition came despite McCoy’s lengthy defense of HF 561, the nuclear industry and MidAmerican Energy, which he repeatedly noted has not raised its electric rates in 16 years. Nuclear power, McCoy said, is the only proven large-scale, carbon-free baseload energy-generating option.
He called it safe — safer than coal mining that has led to the deaths — directly and indirectly — of tens of thousands of people.
McCoy also described the benefits of a small-scale nuclear reactor being located in Iowa. That included benefits to higher education as Iowa students seek degrees in nuclear engineering and related fields and community colleges teach the training needed to operate and maintain the plant.
Then there’s the payroll — as much as $750 million for as many as 1,000 employees during the multi-year construction phase. Once built, the plant, which is likely to cost $1.5 billion, would have 500 permanent employees, McCoy said.
Property taxes on the plant would be distributed to all counties where MidAmerican does business, he added.
Sen. Daryl Beall
All that is attractive, but did not convince Sen. Daryl Beall, D-Fort Dodge, it’s a good idea. The financing “scheme,” he said, “socializes the investment, but privatizes the profit.”
He questioned the safety of even a small-scale nuclear reactor, saying he didn’t want the specter of Chernobyl, Three Mile Island and Fukishima hanging over Iowa.
He disputed the safety of nuclear energy, pointing out there have been 99 “serious” nuclear accidents.
He also called for more use of renewable energy sources.
“Now is not the time to proceed,” Beall said.
However, after more than an hour of debate, the committee adopted McCoy’s amendment.
Those voting for it were McCoy, Beall, and fellow Democratic Sens. Tom Rielly, Oskaloosa, Brian Schoenjahn, Arlington, and Republican Sens. Bill Anderson, Pierson, Rick Bertrand, Sioux City, Randy Feenstra, Hull, Steve Kettering, Lake View, Pat Ward, Clive, and Brad Zaun, Urbandale. Those opposing the amendment were Bolkcom and Democrats Tom Courtney, Burlington, Liz Mathis, Cedar Rapids, Joe Seng, Davenport, and Mary Jo Wilhelm, Cresco.
The committee is scheduled to reconvene later today to take up Bolkcom’s amendments.
-James Q. Lynch
