U.S. Energy Department Launches $6 Billion Program to Sustain Ailing Nuclear Power Plants

The U.S. Energy Department on Feb. 11 launched the $6 billion nuclear credits program approved by Congress in the Infrastructure Investment and Jobs Act, enacted in November 2021, to provide federal aid to existing financially-challenged nuclear plants at risk of closing. The agency released a request for information (RFI) about various parameters of the program, under which nuclear plant operators can get federal credits if they demonstrate they are at risk of closure due to their inability to compete with renewables. The RFI seeks input on the certification process and eligibility criteria for reactors applying for credits, among other issues.

The Biden Administration regards the current fleet of 93 nuclear reactors as a vital resource to achieve net-zero emissions across the economy by the year 2050. Currently, nuclear power generates about 52 percent of the nation’s carbon-free electricity. However, 12 commercial reactors in the U.S. have been forced to close early due to shifting energy markets and other economic factors since 2013. The agency said that the premature closures have negatively impacted air quality in those communities, resulted in an increase in carbon emissions, and eliminated thousands of high-paying jobs.

The new initiative, called Civil Nuclear Credit Program, allows reactor operators to apply for certification and compete for credits to support the continued operation of their reactors. Under the law, applicants must show an economic reason for the reactor’s closure and that air pollution will increase consequently. Furthermore, the agency must assess whether the Nuclear Regulatory Commission has reasonable assurances that the reactor will continue to operate safely. Upon certification by the department, credits will be allocated over a four-year period.

The agency has also published a notice of intent, which informs interested parties about the program and offers potential applicants the chance to submit non-binding, voluntary expressions of interest. Responses to the notice of intent and request for information addressing the general program design and bid process are requested by March 17.