[Congressional Record Volume 146, Number 26 (Thursday, March 9, 2000)]
[Extensions of Remarks]
[Page E267]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




  PROVIDE RELIEF TO AMERICAN ENERGY CONSUMERS: SUSPEND THE TARIFF ON 
                        NUCLEAR STEAM GENERATORS

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                            HON. MAC COLLINS

                               of georgia

                    in the house of representatives

                        Thursday, March 9, 2000

  Mr. COLLINS. Mr. Speaker, in ongoing efforts to ensure safety and 
efficiency, nuclear power plants must periodically replace their steam 
generators. When a Florida manufacturing plant closes its doors 
following the delivery of two steam generators this year, there will no 
longer be any steam generator producers in the United States. 
Consequently, the 103 nuclear power facilities located in the United 
States will have no choice but to import replacement steam generators.
  Under the Harmonized Tariff Schedule, steam generators imported for 
use in nuclear power plants are taxed at a duty rate of 5.2 percent 
(except those imported from Canada, where a zero duty rate applies). 
Importing a single $30 million steam generator results in a tariff of 
approximately $1.56 million. Because nuclear plants generally replace 
two of these generators at a time, the cost of this hidden tax to 
consumers is considerable. Unless it is addressed, this duty will 
increase the cost of supplying electricity to Georgia's rate payers by 
$2.7 million this year. Such unnecessary expenses are inevitably 
incorporated into the rate base.
  According to the Nuclear Regulatory Commission (NRC), at least a 
dozen nuclear power plants are planning to replace their steam 
generators over the next several years. Since there are no domestic 
manufacturers, there is no legitimate reason to continue imposing this 
duty. American consumers should not be required to bear this 
unnecessary cost.
  Today, with the support and original cosponsorships of colleagues 
from Tennessee, Arizona, Georgia, and Connecticut, I am introducing 
legislation that will suspend the duty on steam generators for nuclear 
facilities for five years, providing significant relief for energy 
consumers around the country. I urge my colleagues to join me in 
support of this legislation.

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