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U.S. Energy Secretary unsure if Michigan, California nuclear plants will seek subsidies -Breaking

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© Reuters. U.S. Energy secretary Jennifer Granholm speaking at a news conference held at San Onofre Nuclear Generating Station in San Clemente (California), U.S.A. April 21, 2022. REUTERS/Nichola Groom

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By Nichola Groom

LOS ANGELES (Reuters), – U.S. Energy secretary Jennifer Granholm indicated on Thursday that she is unsure if two reactors with previous shutting plans will receive subsidies. This was part of the climate policy initiative launched by Biden’s administration.

On Tuesday the Administration opened applications to receive $6 billion in credit for Round 1 of last year’s infrastructure bill. The program is designed to prevent nuclear power stations from closing down.

The Energy Department gives priority to plants who have filed plans for closure in its first round. These plants are Entergy Corp (NYSE:)’s Palisades plant in Michigan, and PG&E (NYSE:)’s Diablo Canyon plant in California.

Granholm stated this week that the government is using “every tool possible” to make the United States clean-energy by 2035. This goal was set by President Joe Biden. Granholm also indicated that the priority will be given to the nuclear fleet.

Granholm spoke to Los Angeles reporters on Thursday and pointed out Palisades, pointing to it as a facility that was due to close. However, Granholm also said, “I don’t know if the will apply or no.” It is possible that the plant will close as early as May 31.

Michael Bowling, spokesperson for Entergy, stated in a statement to the contrary. He said that government officials have contacted the company about operating Palisades beyond May’s closing date. The company also has held discussions with potential buyers. However, he stated that Palisades’ permanent shutdown was on track.

Granholm spoke out about Diablo Canyon and said that “we’ll watch what happens but I don’t think that Diablo Canyon community is willing to apply for funding.” This would help reverse the planned shutdowns of the two reactors in the area, which were scheduled for 2024/2025.

Community members previously expressed concerns about the possibility of earthquakes and nuclear waste.

PG&E indicated this week 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 about the DOE program this week. “At the moment, the state does not have any changes in its view regarding California’s future nuclear energy.”

According to the Department of Energy, the U.S. nuclear industry has 93 reactors that generate over 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.

It could prove to be a bad start for the program if there are no applications from nuclear power plants.

ClearView Energy Partners, a nonpartisan research firm, stated that “none of these reactors seems like a good match to us” in a note about the California and Michigan plants.

(Additional reporting by Timothy Gardner; editing by Aurora Ellis

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