Bill Richardson, Fmr. Us Secretary Of Energy

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BILL RICHARDSON, FMR. US SECRETARY OF ENERGY, TALKS ABOUT ENERGY AT BLOOMBERG TV

MARCH 24, 2011

SPEAKERS: CAROL MASSAR, BLOOMBERG NEWS ANCHOR

MATT MILLER, BLOOMBERG NEWS ANCHOR

BILL RICHARDSON, FMR. US SECRETARY OF ENERGY

15:31

CAROL MASSAR, BLOOMBERG NEWS ANCHOR: We continue now with our series this week, The Energy Equation. Bill Richardson served as US Secretary of Energy under President Clinton and he just completed two terms as the Governor of New Mexico State. That is really central to the nation's economy. New Mexico produces three percent of the nation's oil, ten percent of our natural gas, but it is one of 19 states that does not have a nuclear power plant.

Let's talk about why, former Governor Richardson joining us now from Santa Fe. Governor Richardson, good to have you here. Let's start with the nuclear component. Why isn't there any kind of nuclear facility or nuclear power plant, I should say, in the State of New Mexico?

BILL RICHARDSON, FMR. US SECRETARY OF ENERGY: Well, as you mentioned, we are principally an oil and gas state and one of my big pushes was renewable energy, solar and wind, biofuels in the state. We do have quite a bit of nuclear components in the state.

We have two nuclear weapons labs, Los Alamos and Sandia, and we do have a uranium enrichment plant in southern New Mexico. And we also have a low level waste facility, so we do make a contribution to nuclear quite a bit.

MASSAR: No, I know. I know you have got the repository and so on. I guess as the debate rages on, especially coming off of what's going on in Japan about nuclear power, many folks have come on and say nuclear has to be a component of power in this country. Do you agree?

RICHARDSON: Yes, I do. It doesn't emit the greenhouse emissions. It's clean. That's good. But there are a lot of issues that need to be settled with nuclear, especially now issues of safety, environmental risk, especially after what happened in Japan.

I think the first thing we have to do is the 104 nuclear reactors we have in this country in 31 states there has to be some very strong preparedness and safety checks on them. I think they are basically in good shape, but those that are near earthquake areas that are near areas that have technology similar to what happened in Japan, the seismic areas, I think we have got to be very careful.

And the nuclear industry and the nuclear power advocates I think need to come to the table and work with environmentalists to find common ground when it comes to safety, when it comes to environmental risk, when it comes to cost of these plants, and most importantly, what do we do with those spent fuels and what do we do with the waste that comes from nuclear power plants. We have not resolved that.

MATT MILLER, BLOOMBERG NEWS ANCHOR: Governor, let me ask. You mentioned that it's clean, which is the case unless there's a problem. Then it's very dirty obviously. And the cost, we were talking about a lot yesterday, it's much more expensive than producing electricity, for example, with coal or with natural gas. How much of this is just that states like the Federal Government to help them invest in multibillion projects? How much of this is just sort of a government money game?

RICHARDSON: Well, this is why for instance the President, he has proposed 20 new nuclear plants in his budget for this year, but with substantial billions of dollars in loan guarantees. The problem has been that we need the private sector to invest more in nuclear power plants and it just can't be the government. The problem with that is the cost is extensive. It's between, I think you pointed out, $5 billion to $10 billion per plant, so we have to make a choice.

Do we upgrade aging infrastructure plants or do we invest in new technology plants? I say we invest in new technology plants that are safe, that deal with a lot of these issues that happened in Japan, the water boilers, and find ways to improve the technology.

MILLER: All right. Hang on a second, Governor. We are going to take a quick break. Then we are going to come back and you are going to stick with us. Bill Richardson, more with the former US Secretary of Energy after this quick break here on Street Smart.

15:34

(COMMERCIAL BREAK)

15:37

MILLER: We continue now with The Energy Equation and our guest, former New Mexico Governor and US Energy Secretary, Bill Richardson. Governor, let me just ask, in talking about the financing for nuclear projects, why don't we count on the free market to guide us? If private money won't fund these things because they are too expensive and people are too worried about disasters, why not go with cheaper, safer energy sources?

RICHARDSON: Well, look, I'm for that. I think it's important that the private sector play more of a role than it has, but I think in the meantime what we are talking about is financing five nuclear plants in the next ten years. So I think we have to look at our -

MILLER: But why do that? Why not say forget it? We'll go with other power sources.

RICHARDSON: Well, you can't because you have got 20 percent of our energy is already nuclear and they have to make decisions, the Nuclear Regulatory Commission, on not just new plants but licensing existing plants and then making decisions on decommissioning old plants. I'm with you. I think the old, inefficient plants should go and there should be an effort by the private sector to do this. But, look, loan guarantees are being given out to solar and wind and nuclear. They need it because of the huge expense.

Look, this is not easy. I say we invest more in natural gas and we invest more in renewable, particularly wind. I think that's the future. I think solar is the future too, but those are a little expensive also, so we don't have easy choices. I just think we need a mix of clean coal, oil and gas, renewables and nuclear.

MASSAR: But let me ask you, Governor Richardson, and this is something Matt and I have been really grappling over the last few weeks as we - as everything unfolds in Japan. The problems and the potential dangers from nuclear energy, we are seeing it play out in Japan.

Why not put more money, time and efforts to making some of those other renewables such as solar, such as wind or maybe something we haven't even discovered putting more time and effort into them to make them more, not so cost prohibitive potentially. Why aren't we doing that? Is it because government is so in the pockets of the oil industry and so on right now?

RICHARDSON: Well, look, I'm with you on all that. I think the future is solar, wind, renewable, natural gas. I think that's where the emphasis should be. Look at what's happened in the country. We have had the oil spill. That's fossil fuels. We have had the coal mining disaster in West Virginia. We have had the pipeline burst in California and now this nuclear issue.

We have got real safety, environmental issues that we have to have a conversation on but, look, I think the future should be on renewables. This is why they are only about five percent or lower. We need to increase that because they are cleaner, they are more efficient, but we also have to deal with some cost issues when it comes to renewable. Nothing is easy.

MASSAR: Governor Richardson, that's for sure. Governor Richardson, we have run out of time, but we would love to have you back and really continue our discussion. Thank you so much.

RICHARDSON: Of course. Thank you.

15:40

***END OF TRANSCRIPT***

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