Nuclear could benefit from U.S. climate bill

By Timothy Gardner - Analysis

NEW YORK (Reuters) - The U.S. climate bill, a centerpiece of President Barack Obama's green agenda, could stall in the Senate unless it contains incentives to help the nuclear power industry build the next generation of reactors.

The House of Representatives narrowly approved its version of the bill late last month and it included little mention of nuclear energy.

But that looks set to change as a group of moderate Democratic and Republican senators who strongly back nuclear power tries to wrest industry concessions.

A key question is whether the industry and its allies can convince enough lawmakers that nuclear power, long seen as an environmental headache due to its radioactive waste and potential safety risks, is actually a solution to worsening global warming.

As many as 20 to 25 of the 60 Senate Democrats are just as concerned about what the recession is doing to manufacturing, and the coal and oil industries, as they are about global warming. Concessions for nuclear could help win them over, said Manik Roy, a vice president for government outreach at the Pew Center on Global Climate Change.

Moderate Democrats from Midwestern states are especially anxious to see nuclear get incentives because utilities there could get slammed by greenhouse gas regulations.

That's because Midwestern utilities mainly burn coal -- the fossil fuel that emits the most carbon dioxide -- and incentives to build nuclear plants could help them deal with the expenses and provide new jobs.

"There's a whole group of senators that if you wanted to seriously engage them on the climate issue you would have to show them that you are doing everything you can to advance nuclear power in this country," Roy said.