Bailing out the nuclear industry is a bad idea that’s back on the table. The infrastructure package is just the latest to propose a financial lifeline to existing nuclear power plants, in this case, through a new credit program. In total, the credits could amount to a $6 billion bailout for the aging and uncompetitive nuclear reactors.

Back in December 2020, a senate bill proposing a financial credit for nuclear plants at risk of shutting down passed through the Senate Environment and Public Works Committee. In May 2021, the Senate Finance Committee held a markup on the Clean Energy for America Act. Amendments submitted for consideration included a production tax credit for all existing nuclear plants. President Biden’s budget also included new credits for existing nuclear power facilities estimated to cost almost a billion dollar per year. Now, with fresh momentum from the President’s budget request, the bipartisan infrastructure framework is offering $1.2 billion per year for nuclear reactors at ask of shutting down because they can’t compete from FY2022 to FY2026.

Sec. 40323. Civil nuclear credit program.

• Establishes a civil nuclear credit program for certified nuclear reactors that are projected to cease operations due to economic factors
• A nuclear reactor shall only be certified if:
  • Such a reactor is projected to cease operation
  • Pollutants would increase if the reactor were to shut down and be replaced by other power generation
  • Reactor will continue to operate and pose no safety hazard
• Certified nuclear reactors shall submit a sealed bid with the following information:
  • Price per megawatt-hour desired, which shall not exceed the average projected annual operating loss
  • Commitment to provide a specific number of megawatt-hours of generation during the 4-year credit period
• Secretary shall allocate credits to as many reactors as possible. Priority will be given to reactors that use uranium mined, converted, enriched and fabricated in the U.S.

From foregone revenues on uranium mining on federal lands and funding for research and development, to loan guarantees for new constructions, a liability cap for radioactive accidents, and production tax credit for new nuclear power plants, the nuclear industry is subsidized every step of the way. Despite the significant  federal aids, nuclear reactors still struggle to stay economically competitive in the energy market. More bailout money for an already failing industry may crowd out other more affordable and also low-emissions energy options.