What’s New? The Nuclear Energy Leadership Act (NELA), introduced today by Sens. Lisa Murkowski (R-Alaska) and Cory Booker (D-N.J.) and co-sponsored by James Risch (R-Idaho), Shelley Moore Capito (R-W.Va.), Mike Crapo (R-Idaho), Dick Durbin (D-Ill.), Joe Manchin (D-W.Va.), Sheldon Whitehouse (D-R.I.) and Chris Coons (D-Del.). The legislation establishes a significant strategic pact between the federal government, our national labs, and the nuclear industry in a clear effort to address the United States’ vulnerable position as the world’s leader in nuclear technology.
Fast Facts:
- The bill extends the maximum length of federal power purchase agreements from 10 to 40 years. This is important for the nuclear industry, because initial capital costs for reactors are paid for over a period beyond 10 years, which means 10-year PPAs are not sufficient.
- The extended PPA also could help existing reactors which currently are not being adequately compensated for their carbon-free electricity, by establishing longer term, guaranteed revenue streams.
- The bill also calls for the federal government to be an early adopter of new technologies that increase electric reliability and resilience, and the Department of Defense is seriously considering advanced reactor technology to meet this.
- It directs the Department of Energy to construct a fast neutron-capable research facility, which is necessary to test reactor components and materials and accelerate innovation.
- And it establishes a program to provide a minimum amount of high-assay low-enriched uranium, which is required by many advanced reactor concepts but which at present isn’t commercially available in the U.S.
What NEI’s Maria Korsnick is Saying about NELA: “This legislation sends an unmistakable signal that the U.S. intends to re-commit itself as a global leader in clean, advanced nuclear technology. Next generation nuclear technology is being aggressively pursued globally, and in order for the American nuclear industry to compete with state-owned or state-sponsored developers in rival nations – especially China and Russia – we must have significant collaboration between the federal government, our national labs, and private industry in order to accelerate innovation.”
The Big Picture: The Senate legislation is the latest in a series of important initiatives addressing near and future prospects for nuclear. Numerous states in the last couple of years have acted to preserve at-risk nuclear plants; the Federal Energy Regulatory Commission, PJM, and ISO New England are all re-examining their respective price formation policies in light of recent premature nuclear plant retirements; the White House is conducting a top-to-bottom review of the U.S. nuclear industry; and DOE calls advanced reactor technology “absolute game changers” that “will keep America at the forefront of innovation.”
What to Look for Next: A Senate Energy and Natural Resources Committee hearing for the bill, perhaps this month.
Available NEI Expert: John Kotek, Vice President of Policy Development and Public Affairs. Contact NEI’s media team at [email protected].