Biden administration launches $6 billion nuclear power credit program -Breaking
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© Reuters. FILE PHOTO – One of two reactors at San Onofre’s nuclear generating station has been shown in the nuclear power plant south of San Clemente (California, USA), December 5, 2019. REUTERS/Mike BlakeBy Timothy Gardner
WASHINGTON, (Reuters) – The Biden administration opened Tuesday applications for a $6 million program to support nuclear power plants that are struggling to keep up with rising prices. This is part of its plan to prevent the generators shutting down as part of its transition to cleaner energy.
According to Department of Energy (DOE), the U.S. nuclear industry’s 93 reactors produce more than half of its country’s emission-free electricity. Twelve reactors were shut down in 2013 due to competition from renewable energy sources and abundantly-burning plants.
Additionally, safety costs have skyrocketed following the earthquake at Japan’s Fukushima factory in 2011, and subsequent attacks on September 11. The toxic waste produced by the industry is stored at 28 plants in various states.
DOE announced that it would accept application from owners of nuclear power plants to fund the Civil Nuclear Credit Program’s first round until May 19. They will give priority to reactors with an already declared intention of closing. This program is for states that have competitive electricity markets and was made possible by last year’s infrastructure bill.
Jennifer Granholm Energy Secretary said the administration “uses every tool” to ensure the nation is powered by clean energy by 2035. President Joe Biden set that goal. Granholm noted that they have prioritized the current nuclear power fleet.
This funding of $6 billion is intended to be spread gradually. With the current four-year funding period expiring in 2035, $1.2 billion can be appropriated by the DOE. Officials stated in February that the DOE hopes to start helping one or two plants by this year.
PG&E (NYSE:), whose plan to shut its two Diablo Canyon reactors in California in 2024 and 2025 has been approved by the state legislature and regulators, indicated that the nuclear credit program would not change its plan immediately.
“As a regulated utility, we are required to follow the energy policies of the state,” said PG&E spokesperson Suzanne Hosn when asked about the DOE program. “At the moment, the state does not have any changes in its view regarding California’s future nuclear energy.”
A variety of utilities could benefit from the program, such as Constellation Energy Corp (PSEG) and Constellation Energy Corp (Constellation Energy Corp), which do not currently have plans to close down their plants.
Joe Manchin, a conservative Democrat, praised the plan. Manchin has thus far blocked Biden from passing clean energy legislation as part of his huge Build Back Better bill. The massive Build back Better bill included millions in additional tax credits for nuclear power. In recent weeks, Manchin said he would be open to narrower legislation which makes climate-friendly investments.
Manchin stated that the program would keep America’s reactors running, preserve American jobs and reduce emissions. It will also increase our energy security.
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