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Nuclear options

Feb 18, 2022 View in browser
 
The Long Game header

By Debra Kahn and Jordan Wolman

THE BIG IDEA

A new nuclear plant is under construction.

Nuclear energy appears to be on the upswing. | (John Bazemore/AP Photo)

Across the country and across the political spectrum, politicians and activists are warming back up to nuclear power.

Connecticut, Illinois, New Jersey and New York are among the blue states offering incentives to struggling nuclear facilities, as E&E News' Benjamin Storrow reports . New York, New England and Pennsylvania have all seen rising power-sector emissions after they closed nuclear plants and let natural gas fill the gaps. Activists and academics are pushing California to keep its one remaining nuclear plant open.

There's also a resurgence in places where it's pronounced "nucular." Missouri lawmakers are considering a bill to let nuclear plant owners recover construction costs, and West Virginia Gov. Jim Justice signed a bill last week eliminating a quarter-century-old ban on nuclear plant construction, as E&E News' Jeff Tomich and Kristi E. Swartz report.

The attractions are manifold. For red states, nuclear can provide baseload power to replace coal-fired plants that are shutting down due to age or economics, while also generating jobs, tax revenue and other benefits for host communities. The employment and grid reliability arguments sell just as well in blue states, on top of a generational shift among environmentalists as baby boomer activists retire and climate change becomes the overriding concern for the movement.

"Today, the impacts of climate are so tangible you can taste it in your mouth," said Michael Wara, a Stanford University energy policy researcher. "It isn't polar bears or something in 2050 about sea-level rise. It's now. It's affecting where you want to live and how safe your kids are. So maybe you're willing to take a risk on an old nuclear power plant on a fault line?"

The Biden administration is supporting it both ways. An Energy Department official testified last month in support of an Indiana bill to incentivize siting next-generation nuclear plants at existing coal-plant sites. The bipartisan infrastructure package passed last year included $1.2 billion in assistance for nuclear facilities, while the stalled "Build Back Better Act" would have gone further still, with a production tax credit for nuclear facilities worth $23 billion.

It might all be for naught, though. Even though former Energy Secretary Steven Chu and other prominent academics are calling for California's Diablo Canyon nuclear plant to be kept open past its 2025 retirement date, no one with any authority is talking about it.

And the small modular reactors that red states are supporting won't be commercially deployed for years, and their economics are unproven, as Jeff writes.

Meanwhile, the only new plant under construction in the U.S., the 2,200-megawatt Plant Vogtle in Georgia, continues to set a discouraging example for potential investors. Southern Co. on Thursday announced yet another delay and cost hikes, pushing the total to almost $30 billion and the start date to early 2023, as Kristi reports. "We're a little frustrated with the latest developments," Southern CEO Tom Fanning said in an interview.

AROUND THE NATION

Lena Gonzalez speaks.

California state Sen. Lena Gonzalez (D) introduced a fossil fuel divestment bill. | (Gonzalez for State Senate via AP, File)

California state Sen. Lena Gonzalez (D-Long Beach) introduced a bill that would require public pension funds in the state to make no new investments in fossil fuel companies and pull out of existing such investments in five years.

The Fossil Fuel Divestment Act (SB 1173) would be nothing to sneeze at. The California State Teachers' Retirement System and the California Public Employees' Retirement System are the nation's two largest public pension funds. Combined, they have more than $9 billion in fossil fuel investments as part of the $800 billion in assets they manage. A 2015 law already prohibits California public pensions from investing in thermal coal.

The first committee hearing will likely be in March or April. Gonzalez is hopeful the bill will garner enough support in the legislature to become law.

"That is the million dollar question," she said. "I think the political appetite is there."

The bill is sure to face opposition from the Western States Petroleum Association, Chevron and other oil companies and groups, advocates acknowledged at a Thursday press conference. And just last week, top CalSTRS officials made clear they had no plans to divest from fossil fuels and instead prefer to advance climate progress through stakeholder engagement.

Meanwhile, the board that oversees Massachusetts' pension fund voted Thursday to instead use its shareholder power to press for climate action.

 

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LOOK AHEAD

Events are listed in Eastern Time

Feb. 22 — Humane meat — The Breakthrough Institute hosts a webinar on low-carbon beef and protein consumption. Beef production accounts for more than 3 percent of U.S. greenhouse gas emissions. 4 p.m.

Feb. 23 — Green energy on the farm — In an online seminar, the Farm Foundation will discus issues farmers and investors face regarding green energy opportunities on the farm. 10 a.m.

Feb. 23 — Plastic waste — The Wilson Center hosts Margaret Spring, chief conservation and science officer at the Monterey Bay Aquarium, who will discuss a landmark plastics report from the National Academies of Science and the U.S. plastic challenge. 3 p.m.

Feb. 24 — Green finance — The Alliance for Innovative Regulation will host SEC Commissioner Allison Lee and other government and technology industry leaders to discuss environmental, social and governance disclosures. 11 a.m.

Feb. 24 — Lithium — The Atlantic Council hosts Emilie Bodoin, founder and CEO of Pure Lithium, who will discuss ways to reduce battery manufacturing costs. Noon.

Feb. 24 — Federal action — The Environment and Energy Study Institute continues a series of briefings on federal programs that deliver environmental, economic and social benefits. 3 p.m.

Feb. 28 — West Virginia v. EPA — The U.S. Supreme Court will hear arguments in a package of cases about the Environmental Protection Agency's authority under the Clean Air Act. 10 a.m.

March 1 — President Joe Biden will deliver his State of the Union to a joint session of Congress.

 

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