The White House has signaled in recent weeks that it would support taxpayer subsidies to keep existing nuclear facilities from closing, realizing that it needs these plants to meet U.S. climate goals, three sources familiar with the conversation told Reuters.
It is likely that the subsidies, in the form of “production tax credits,” would become part of President Joe Biden’s multi-trillion dollar legislative effort to invest in the nation’s infrastructure and jobs, the sources said. Producers of wind and solar power already these tax rebates, based on the levels of energy they generate.
There are over 90 nuclear power plants in the United States, the most of any country in the world. And nuclear reactors are the top source of emissions-free power generation. However, these aging plants are being closed due to rising security costs and competition from cheaper natural gas and renewable energy sources.
The U.S. needs nuclear reactors
It has been suggested by analysts that without nuclear power generation, Biden’s goal of the U.S. reaching zero-emissions would be challenging, if not impossible, reports the Economic Times.
“There’s a deepening understanding within the administration that it needs nuclear to meet its zero-emission goals,” said a source engaged in the talks and familiar with the White House thinking.
New York state’s Indian Point nuclear power plant, owned by Entergy Corporation, closed down its last reactor on April 30 after nearly 60 years of generation emissions-free power. In Illinois, Exelon Corporation is threatening to close four reactors at two of its power plants by November this year if the state does not implement subsidies.
The building trades unions have lobbied the White House for the production tax credits for nuclear reactors, pointing out that the power plants provide thousands of union jobs that pay some of the highest salaries in the energy business.
A blueprint to save the existing reactors
Even though Biden campaigned on the promise to boost spending on research on a new generation of advanced nuclear plants, like the preceeding Trump and Obama administrations, it has been a struggle to come up with a blueprint for saving our existing nuclear reactors.
The Biden administration has also supported a Clean Energy Standard (CES) in the infrastructure plan, a mechanism that could support existing nuclear plants. The CES could easily coexist with production tax credits, making it easier to set more ambitious targets to hit net-zero goals.
“We’re racing to cut emissions, create jobs, and shore up local economies — allowing nuclear plants to close sets us back on all three fronts,” said Ryan Fitzpatrick, director of the climate and energy program at Third Way, a moderate think tank, reports U.S. News.
