The Environmental Protection Agency would encourage states to build new nuclear plants and preserve those threatened by low wholesale power prices under a proposal to cut carbon emissions released Monday.
Carbon pollution has not previously been restricted by the EPA, and the proposed rule would reduce carbon emissions from power plants 30 percent by 2030. It would do so by requiring states to set goals to curb emissions through a range of possible means, including the development of nuclear power. The plan would credit Georgia, South Carolina and Tennessee for the carbon savings enabled by reactors under construction in those states. It would also credit states for the carbon offset provided by any future nuclear plant construction.
Additionally, the EPA emphasized the effect that premature closure of nuclear plants could have on climate goals. The proposal notes Energy Information Administration projections indicating that 6 percent of the U.S. nuclear fleet, representing 5.7 gigawatts of generation, faces economic challenges and potential reactor retirements. These units have experienced average losses estimated at $6 per megawatt hour. The EPA argued that state policies to offset those losses would amount to a relatively low cost of $12 to $17 per metric ton of CO2 saved by keeping the reactors online. As such, the agency recommended that states be credited for the carbon savings associated with keeping at-risk reactors running.