- State Legislature passes bills instituting zero-emission credit program
- Bills allow Hope Creek, Salem plants to remain operating
- New Jersey recognizes value of zero-carbon nuclear
Faced with the potential closure of the Hope Creek and Salem nuclear power plants, the New Jersey Senate and Assembly passed companion bills to compensate the plants for producing carbon-free electricity. The much-needed measures will preserve New Jersey’s clean air, more than 5,000 jobs and 97 percent of the state’s clean electricity.
“Today residents of New Jersey can look toward a future of secure electricity generation and cleaner air thanks to the action taken by legislators in Trenton,” NEI President and Chief Executive Officer Maria Korsnick said.
This is a remarkable moment for the people of New Jersey and for thousands of nuclear energy industry employees across the state.
“Gov. Phil Murphy, Senate President Steve Sweeney, Assembly Speaker Craig Coughlin and members of both houses of the state legislature deserve immense credit for recognizing—in a timely fashion—the impact of the Salem and Hope Creek nuclear power plants and the important role they play in keeping the lights on while protecting New Jersey’s environment.”
The bills (S 2313 and A 3724) will preserve “more than $800 million in annual economic activity across New Jersey, including 5,800 direct and indirect jobs at Salem and Hope Creek and thousands more jobs that the plants support across the state,” Korsnick added. “New Jersey’s nuclear energy facilities are a critical economic engine, and electricity coming from Salem and Hope Creek comprise nearly half of the state’s fuel mix and 97 percent of its emission-free generation."
The legislators passed a clean energy package that comprises three separate energy bills targeted at nuclear energy, renewables and a wind energy pilot program. The nuclear-related bills allow the state’s plants to continue anchoring local economies and electric grid by supplying nearly 50 percent of the state’s electricity.
“Until recently, our state had a proud history of being at the forefront of protecting our environment,” said former New Jersey Gov. James Florio. “These bills will go a long way toward helping us restore that tradition.”
The nuclear bills establish a zero-emission credit (ZEC) program that compensates nuclear plants for their carbon-free electricity production. ZECs are modeled after credit programs in other states that support renewable energy. New Jersey’s program extends similar compensation to nuclear plants, aiming to correct markets that don’t properly value the zero-carbon attributes of nuclear energy.
“Today’s bill in Trenton levels the playing field for nuclear energy with other carbon-free energy sources. The clean energy benefits from this action are significant,” Korsnick said. “Between them, the Salem and Hope Creek facilities prevent the emission of more than 14 million metric tons of carbon dioxide a year—the equivalent of taking 3 million cars off the state’s roads.”
New Jersey now joins other states in taking steps to value all zero-carbon energy sources. New York and Illinois also instituted ZEC programs in 2016 and the next year Connecticut passed a law that would allow the Millstone Power Station to compete with other non-emitting sources in a clean electricity procurement that is used to meet the state’s environmental policies. Similar policies supporting nuclear energy are under consideration in Ohio and Pennsylvania as these states grapple with FirstEnergy Solution Corp.’s announced plant closures.
“Like New York, Illinois and Connecticut before them, the state’s leaders have made a wise investment in New Jersey’s clean energy future,” Korsnick said. “Policymakers in Ohio and Pennsylvania now must follow suit and act expeditiously to preserve nuclear plants in their states.”
“Again, I commend the members of the New Jersey state legislature, and I urge Gov. Murphy to expeditiously sign this legislation into law.”