Environmental

The Fukushima disaster has fallen off the headlines, but fear of nuclear energy remains a potent barrier to new development—as well as continued operation of the current reactor fleet. Building the foundation for a stable industry will require a sustained and strategic approach to restoring and securing the public trust.

‘We can’t have it both ways: costly mandates without full consumer understanding and support.’

Oklahoma Sen. James Inhofe has made it his mission to block environmental regulations, especially greenhouse gas constraints. His most recent attack targets John Bryson, former Edison International CEO and Pres. Barack Obama’s nominee for Commerce Secretary. But rather than protecting economic interests, as Inhofe purportedly aims to do, his actions have added to the ongoing policy chaos that frustrates clean coal development.

In the aftermath of the March 11 earthquake and tsunami, questions are arising about the safety and survivability of reactors located in geologically active areas. Major changes might be required, and as a result the U.S. nuclear industry might face an existential challenge on the order of the Three Mile Island accident.

As the Fukushima-Daiichi crisis unfolds, the U.S. DOE’s Blue Ribbon Commission is preparing its initial recommendations on how America should deal with its commercial nuclear waste. Early indicators suggest it will endorse the so-called fedcorp model—creating an independent federal corporation, similar to TVA. But a fedcorp structure, by itself, won’t resolve the spent-fuel dilemma. Success will require a strong mandate, consistent funding—and a totally new approach to siting and management.

With budget battles heating up in Washington, Congress and the Obama administration are squaring off to debate energy policy legislation. While Democratic leadership favors a clean energy standard, Republican lawmakers are focused on blocking administration initiatives to regulate greenhouse gas emissions. A compromise approach might bring substantial changes to America’s national energy strategy.

With the abandonment of a nationwide energy policy by the previous Congress, states continue leading carbon mitigation efforts. Indeed, existing state policies and renewable portfolio standards (RPS) are already having a significant impact on the U.S. generation portfolio. FERC now proposes to weigh state policy as a consideration in transmission filings. Should state policies guide federal action? Will they suffice to reduce carbon emissions?

Could a TVA-style Fed Corp model be the answer to America’s ongoing nuclear waste dilemma? A bill sponsored by the new Senate Energy Committee chairman proposes to create just such a corporation. Constellation’s Henry (Brew) Barron discusses the proposal — and its prospects for enactment in the current political environment.

Small coal-fired plants are particularly vulnerable to economic and environmental pressures, putting some plant owners in what seems like a no-win position. But an emerging option—biocoal from crop wastes—might give small coal units a new lease on life.

In terms of the political calculus, GHG regulation faces an uncertain future, at least into 2013. And as a flood of cheap gas erodes the perception of an impending environmental crisis, politicians will have less incentive to impose carbon constraints. Does shale gas signal the end of the road for greenhouse gas regulation?