West Virginia’s legislature passed a bill that repeals the state’s ban on new nuclear power plants by a vote of 76 to 16, with 8 members absent. The short bill, which simply repeals two sections of code containing the ban, was signed by Governor Jim Justice’s the next day, which he called “a positive step” in modernizing the state’s regulatory environment.
The bill simply enables the state to consider new nuclear projects and does not in any way mandate nuclear nor does it provide for the regulation of nuclear power. But it will create the space for the state to consider the prospect of allowing either traditional or advanced nuclear power to be built in the future.
Apparently Nucor Corp., which announced plans for a $2.7 billion sheet metal steel mill project in Mason Country, inquired about the possibility of nuclear generation for its power source, it ensure a reliable source of carbon-free power, according to Senate Minority Whip Michael Woelfel, who acknowledged that that technology behind nuclear power generation was advancing. “This would be, as they see it, a step in the right direction to allow nuclear energy as an energy source,” he said. “We can’t afford to be protective of any industry at this point. We have to be attractive to manufacturing around the world and this will help us do that.”
The fact that this rather progressive state action that could have a meaningful impact on West Virginia’s near total reliance on coal (88%) and gas (5%), is happening in Senator Joe Manchin’s state is somewhat ironic. After all, it is Senator Manchin’s vocal opposition to President Biden’s Build Back Better legislation, that is holding up action on climate change.
However, Senatory Manchin has been a public and staunch supporter of nuclear power for some time. Back in April, 2021, Machin sent Biden a letter urging him to support the domestic nuclear fleet and prevent plant closures. As it turns out, one of the key provisions that Manchin opposes in the Build Back Better bill is the $15 per megawatt-hour credit that could be claimed by nuclear power plants for up to six years. Manchin is arguing for the tax credit to be extended longer and last for 10 years, which further improves the economics for nuclear power, according to people familiar with the matter.
To read more, see the West Virginia News, West Virginia Legislature passes bill to repeal nuclear power plant ban, by Charles Young, February 7, 2022. See: Coal-dependent West Virginia eliminates ban on nuclear power, at NPR, February 8, 2022. For further background, see Governing, West Virginia Considers Lifting Ban on Nuclear Power, from January 12, 2022, by David Beard of the Dominion Post. Read Manchin’s letter to Biden, urging him to prevent premature plant closures here.