A few months ago, I delved into a fascinating bill being debated in Congress, the ADVANCE Nuclear Act, which had the potential to reinvigorate the nuclear energy sector in the United States. This bill would have helped streamline and modernize the cumbersome regulatory process that restricts construction of new nuclear plants (you can read the specifics of the bill here). Now, a new House version of the bill, the Atomic Advancement Act (AAA), seems to be inching closer to the president’s desk.
Nuclear momentum is building at the federal level, and with the AAA gaining serious traction in Congress, shouldn’t Missouri position itself to take advantage of possible federal changes?
In Missouri, there appears to urgency in finding coal’s replacement. Nuclear energy could be the keystone piece in this future transition. So what can Missouri do?
While I have highlighted numerous state reforms in previous blog posts and testimonies, the most pressing issue is fixing a statute passed in the 1970s, seemingly at the behest of the anti-nuclear lobby. This statute prevents utilities from raising rates in order to help pay for construction works in progress (CWIP). Nuclear power plants are both extremely capital intensive and subject to extensive holdups in the regulatory process. These two factors make nuclear developments risky investments, and this absence of a financial backstop has been, and continues to be, a roadblock for further nuclear development in Missouri.
While there are many important topics being debated in Jefferson City, legislators should not forget about the importance of nuclear regulatory reform—especially as federal reform could be near. In the Missouri Legislature, House Bills 1435 and 1804 (which address the CWIP statute) have made little progress.
As coal power is being phased out, Missourians will need an energy source that will keep the lights on and the air clean. Nuclear power can check both these boxes—but power plants do not arise out of thin air, and they will not be built in Missouri if the regulatory environment here makes them infeasible or prevents them from being cost effective. Eliminating the longstanding CWIP statute through HB 1435 and HB 1804 would help utilities shoulder the upfront cost of plant construction so that they can work with both domestic and international nuclear developers to revive our state’s nuclear industry.
We should set a solid foundation in our state while the federal government works on its end. Missouri should not miss opportunities for nuclear development because we allowed bad state policies to remain in place.
