Late Wednesday night the House wrapped up debate on the Energy and Water Development Appropriations Bill for Fiscal Year 2014. Several amendments were offered to stop wasteful subsidies included in the bill but instead of exercising fiscal responsibility, Congress chose to keep the pork.
One wasteful subsidy that avoided a cut was the Mixed Oxide Fuel Facility (MOX)which kept $320 million in the bill. The MOX facility was designed to convert weapons-grade plutonium into mixed-oxide fuel for use in U.S. commercial nuclear reactors. But over budget, behind schedule, and without a market for its product MOX is a train wreck. While some, including the Administration have begun to bring scrutiny to the project, it’s time to really take the axe to this faulty project.
Another example of the wasteful spending that remains in the bill is $110 million for the Small Modular Reactor Program. An Administration darling, the SMR program is yet another subsidy for the heavily subsidized and mature nuclear industry. DOE is pushing this program like it’s the best thing since sliced bread but financial, safety, and security risks plague the idea of large-scale production of these “mini” nukes. Industry needs to pony up and pay for this one.
The United States Enrichment Corporation (USEC) was provided a $48 million handout in the bill—continuing its costly reliance on taxpayer subsidies. A company on the verge of bankruptcy, USEC has experienced massive drops in stock prices, repeated credit rating downgrades, and technological difficulties while it attempts to complete a massive $5 billion research, development, and demonstration project. Due to these financial and technical struggles, USEC has relied on tens of millions in taxpayer handouts over the years to remain in the black. Taxpayers can no longer be tied to this sinking ship.
Let’s hope these and many other subsidies get dropped from the bill before it is enacted into law. The Senate is up next. The Senate version of the bill includes an additional $4.4 billion in spending and is also loaded with the subsidies. Stay tuned to see any Senators have more success trimming the fat.
Table 1: Comparison of Fiscal Year 2014 Energy &Water Development Appropriations Bills (millions) | |
---|---|
President's Request | $34,972.807 |
House Proposal | $30,426.000 |
Senate Proposal | $34,835.288 |
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