Joe Starnes

October 27, 2008

The United States may be on the brink of a nuclear power renaissance, as plans are underway to revive its dormant nuclear power industry. Twenty-one companies have begun the licensing process for the construction of thirty-four new nuclear power plants with the Nuclear Regulatory Commission. The construction of these plants would be the first started since 1973. Given the growing concerns about climate change and energy independence, the time is considered ripe for new applications and for planning new reactors, perhaps the best opportunity in thirty years according to some.

Most of these new nuclear power plants would be constructed in the southeastern United States, in states like Florida, North Carolina, and Texas. New plants are also being planning in Idaho, New York, Pennsylvania, and Utah.

However, the plans for these new reactors are in early development and actual construction is far from beginning. Many doubt that all thirty-four plants that are being planned will actually be completed and become operational. There are two major obstacles to these proposed reactors: Cost and security concerns.

The costs of these new nuclear power plants could prove prohibitive. These plants can require billions of dollars of investment. Some projections suggest that new reactors could cost $8,000.00 per kilowatt of capacity. The concerns over such costs only increase in light of the current economic crisis. And while the federal government subsidizes nuclear power with $1.59 for every megawatt hour of electricity produced, it also subsidizes renewable power sources, such as wind and solar power, with $2.80 for every megawatt hour of electricity produced. These high costs could likely derail at least some of the plans for new reactors.

There are also security concerns that could slow down the licensing and planning for these new plants. In San Luis Obispo Mothers for Peace v. Nuclear Regulatory Commission, the United States Court of Appeals for the Ninth Circuit held that the commission must consider the environmental impact of a terrorist attack in approving projects. The attorneys general of New York, New Jersey, and Massachusetts already have pending challenges against commission decisions based on similar security concerns. Determining the risk of a terrorist attack and the subsequent impact on the environment, could delay or even prevent some of these new proposed reactors from being approved.

The United States currently has 104 operating nuclear reactors. Whether all thirty-four proposed plants or just a few will join them remain to be seen. And the hopes for an American nuclear renaissance may ultimately be premature.

Sources:

David Whitford, Going nuclear, Fortune, July 31, 2007, http://money.cnn.com/magazines/fortune/fortune_archive/2007/08/06/100141305/index.htm.

Erica Werner, Feds reject protest to nuclear waste storage plan, Associated Press, Oct. 22, 2008, http://ap.google.com/article/ALeqM5himeHBgL0yO-_uxFZtjjYuWIlwPAD940DC600.

John Tierney, Why Nukes? Why Energy Independence?, N.Y. Times, Oct. 22, 2008, http://tierneylab.blogs.nytimes.com/2008/10/22/why-nukes-why-energy-independence/.

Matthew L. Wald, Nuclear Power May Be in Early Stages of a Revival, N.Y. Times, Oct. 23, 2008, at B3.

Nuclear Regulatory Commission, Location of Projected New Nuclear Power Reactors, Oct. 20, 2008, http://www.nrc.gov/reactors/new-reactors/col/new-reactor-map.html.

San Luis Obispo Mothers for Peace v. Nuclear Regulatory Com'n, 449 F.3d 1016 (9th Cir. 2006).