Lawmakers advance nuclear power legislation in US states lacking reactors

Lawmakers in several states that do not currently have operating nuclear plants are advancing legislation to break down barriers to reactor development, aiming to further decarbonization goals, increase grid reliability, and repower or replace existing fossil fuel plants.

"We knew that states were on this track of looking at nuclear," said Christine Csizmadia, senior manager of state government affairs for trade group Nuclear Energy Institute. "But what we didn't know for this legislative session is that the hunger that we were going to see out of the states was really going to be insatiable. The number of bills introduced has been much more than we expected, and it's from states we didn't necessarily have on our radar."

Indiana, Kentucky, West Virginia and Wyoming are among states that lack nuclear generation but this year are paving the way for possible future development.

West Virginia in February repealed its ban on construction of nuclear power plants with Senate Bill 4, a significant step toward a possible future of nuclear generation in a state dominated by coal for generations.

West Virginia was followed by Indiana, with Senate bills 271 and 381 enacted in March. They establish a regulatory program in the state for nuclear power and classify new nuclear technology as clean energy projects, measures Csizmadia said remove a barrier and allow utilities to consider small modular reactors.

In Kentucky, lawmakers are weighing a feasibility study of advanced nuclear power in the state with Senate Concurrent Resolution 171. Kentucky's measure has also made some of the most significant progress, Csizmadia said, with a 30-0 vote in the Senate on March 21.

Wyoming, also traditionally a coal-producing state, recently passed into law House Bill 131 and Senate File 105, which will support the planned $4 billion Wyoming Advanced Energy (Natrium) nuclear project being developed by TerraPower LLC. The largest electric utility in Wyoming, Berkshire Hathaway Energy subsidiary PacifiCorp, plans to purchase the plant upon completion, estimated around 2029, however, regulators in Oregon, another state in which PacifiCorp operates, in late March questioned the inclusion of the new nuclear capacity in the utility's preferred resource mix outlined in its latest integrated resource plan.

Elsewhere, states with existing nuclear are also considering similar legislation. In Minnesota, lawmakers are weighing a bill that would abolish the state's prohibition on issuing a certificate of need for a new nuclear power plant. Minnesota has two existing plants, the 646-MW Monticello and 1,092-MW Prairie Island, both of which are owned and operated by Xcel Energy Inc. and are licensed to operate into the first part of the 2030s.

Market signals

Many states and utilities remain cautious about pursuing investments in new nuclear, particularly in light of the Southern Co.-led expansion of the Vogtle plant, which remains years behind schedule and billions of dollars over budget. The two additional units in Georgia are the only new reactors under construction in the U.S.

But as the federal government pushes decarbonization and states adopt clean energy standards, zero-emission credit programs, more market-based carbon pricing mechanisms, tax exemptions and repeal prohibitions with nuclear in mind, electric utilities are pursuing carbon reduction goals, some with nuclear technology. Most major utilities have set goals of achieving net-zero emissions by 2050, with plans to dramatically ramp up deployment of renewables, but acknowledge decarbonizing the last, approximately 20% of the generation stack will require carbon-free, non-intermittent resources.

Nuclear is one of only ways to reach those decarbonization goals "reliably and affordably," said Marc Nichol, senior director of new reactors for the Nuclear Energy Institute. State legislation can create a "market demand signal" for new nuclear technology such as small modular reactors, or SMRs.

"That really gears the market toward looking at advanced nuclear reactors," Nichol added. "When we have that demand signal, we get more private investment into the design that helps accelerate the commercialization and make it more successful."

Reliability is paramount for utilities, and it may take precedence over clean energy goals for some, at least in the short term, Nichol said. But advanced nuclear technology has matured rapidly in recent years and could provide the combination of reliability, decarbonization and flexibility utilities seek.

"The technology is at a point where companies can actually pursue it," Nichol added. "And then you have the coal plant closures, too."

Small modular reactors

Advanced nuclear technology developers such as NuScale Power LLC see the impending retirement of more of America's coal fleet coupled with state nuclear policy progress as a major opportunity to establish technologies such as theirs across the country.

NuScale Power Chief Strategy Officer and CFO Chris Colbert, who testified as West Virginia lawmakers considered their proposals, said in states looking to retire significant coal generation, policy to enable new nuclear technology such as SMRs could create an opportunity to more easily replace or repower those plants, retain the workforce and cut emissions.

"Coal retirements are happening regardless," Colbert said. "It's no longer theoretical that these [SMR] designs are safer and licensable. [There are] options now that didn't exist before."

Small modular reactors may also be more flexible and provide longer-term solutions than other generation resources some companies are considering to boost reliability, such as natural gas. State policy changes are taking place at an ideal time for utilities with portfolios in transition, Nichol said.

"We have projects that are expected to begin operation later this decade, 2027 through 2029," Nichol added. "It's the right time for system planning, generation expansion planning. These are very much a real option and the price profile looks very similar to natural gas."

As more states allow or incentivize advanced nuclear technology, Nichol said a major challenge will be to "revitalize our supply chain in the United States" to keep up with anticipated demand.

While several states have passed legislation removing barriers to nuclear power development, the process is not complete in others and may not wrap up this year. Utilities will also need to submit integrated resource plans that incorporate nuclear if they have not done so already, Csizmadia and Nichol said. Utilities including Duke Energy Corp. and the Tennessee Valley Authority already incorporated proposals for new or advanced nuclear generation in their plans, Nichol added.

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