Biden DOE launches nuclear plant bailout plan

The Biden administration last week launched a $6 billion plan to keep uneconomic nuclear power plants operating as “the nation’s largest source of clean power.” The money comes from the bipartisan infrastructure bill that passed Congress early in the administration, under a provision titled the “Civilian Nuclear Credit Program.”

Beaver Valley nuclear plant

Energy Secretary Jennifer Granholm said, “U.S. nuclear power plants are essential to achieving President Biden’s climate goals and DOE is committed to keeping 100% clean electricity flowing and preventing premature closures. The Bipartisan Infrastructure Law makes this all possible by allowing us to leverage our existing clean energy infrastructure, strengthen our energy security and protect U.S. jobs. DOE is facilitating the development of next generation technologies that can ultimately lower emissions and bolster the clean energy workforce.”

According to a Feb. 10 DOE pre-publication Federal Register Notice of Intent and Request for Information, “As energy markets and economic circumstances continue to shift, multiple zero-emission nuclear generation assets are at risk for early closure, and several have already closed prematurely due to economic circumstances. Such closures have resulted in increased air pollution in communities, including disadvantaged communities, where fossil generation has replaced lost nuclear generation, materially impeded the national goal of carbon pollution-free electricity by 2035, and cost the nation thousands of high-quality union jobs.”

The agency, working with the U.S. Nuclear Regulatory Commission, will conduct a competitive process to determine which plants are certified for the federal funds, over a four-year period, “beginning on the date of the selection.” After that time, winners could apply for recertification to run through September 2031, “subject to the availability of funds.”

DOE has criteria for the units subject to its funding, including:

*Whether the plant is in a “competitive market.”

*If the plant is facing closure due to economic factors.

*Whether closure would increase greenhouse gas emissions.

*The plant must make assurances it will “sustain operation” after the four-year bailout period.

*Assure a fuel supply for the duration of the award.

*NRC assurance that the plant can operate safely during the period of the award.

*Unspecified “other criteria” deemed by DOE.

Nuclear Newswire commented, “Shifting energy markets and other economic factors have already led to early closures of 12 commercial nuclear power reactors across the United States, and other economically at-risk facilities could retire in the coming years. Data show that closing nuclear power plants results in an increase in air pollutants and carbon emissions because fossil fuel plants typically fill the void left by carbon-free nuclear generation facilities.”

–Kennedy Maize

(kenmaize@gmail.com)