Nevada threatens DOE over funding loss

Suzanne Struglinski

Wednesday, Dec. 10, 2003 | 11:17 a.m.

WASHINGTON -- Nevada is threatening to file more lawsuits against the Energy Department unless it restores funding for state and local oversight activities for Yucca Mountain by Jan. 1.

Nevada Attorney General Brian Sandoval sent a letter to Energy Secretary Spencer Abraham and Office of Management and Budget Director Joshua Bolten on Monday, stressing the department's legal obligation under the Nuclear Waste Policy Act to give the state money for oversight activities.

President Bush's 2004 budget request eliminated the $2.5 million provided to Nevada and $6 million for local governments for research and other oversight activities for the planned nuclear waste storage site 90 miles northwest of Las Vegas.

"In some cases, Nevada's scientific studies are the only such studies being undertaken by anyone, insofar as DOE prematurely ceased its Yucca site characterization activities prior to you recommending the site to President Bush on February 14, 2002," Sandoval wrote in both letters.

Nuclear Waste Project Office Executive Director Bob Loux said Sen. Harry Reid, D-Nev., secured $1 million for the state and $4 million to be split among county and local governments for Yucca oversight activities. Loux said the department did not request the money. The House spending bill that funds the project did not contain that money; only the Senate bill had it.

Reid is the top Democrat on the Senate Appropriations Subcommittee that creates the Energy spending bill that allocates the money for the program each year. The $580 million approved for the project next year is an $11 million decrease from Bush's request but also marks the largest budget for the program since its inception sources say.

Gov. Kenny Guinn sent a letter to Abraham in February expressing his "extreme concern and surprise" over the state funding elimination and also reminded the department of the law requiring payment to the state "to foster public confidence in the integrity of the proposed repository."

But Sandoval wrote that Guinn has not received a response to his letter, almost nine months later and that the 2005 funding may also be threatened.

"Please be advised that Nevada will seek legal redress against DOE in the federal Court of Appeals if funding for Nevada's necessary oversight activities at Yucca Mountain is not restored by January 1, 2004," Sandoval wrote Abraham.

He asked Bolten for "OMB's assistance in getting DOE to restore Nevada's funds, recognizing of course that this is ultimately the Secretary's decision" before offering the same advice.

Tom Sargent, Sandoval's spokesman, said Nevada wants the money restored to the budget, to try to ensure that the funding will remain in place.

Energy Department and federal Office of Management and Budget officials did not return phone calls in time to comment for this story.

The state already has several pending court cases opposing the Yucca Mountain project. Oral arguments are to be heard in Washington on Jan. 14.

With his letter, Sandoval included a 1995 letter from the Energy Department's chief financial officer and its analysis by its general counsel noting that the department has to make payments to Nevada for oversight activities.