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DOE Study Says Hundreds Of Coal Plant Sites Could Be Converted To Nuclear Plant Sites

September 16, 2022

by Paul Ciampoli
APPA News Director
September 16, 2022

A new U.S. Department of Energy (DOE) study finds that hundreds of coal power plant sites across the country could be converted to nuclear power plant sites.

“This would dramatically increase the supply of firm and dispatchable clean electricity to the grid and deliver huge gains to the nation’s goal of net-zero emissions by 2050,” DOE said.

According to the report, this coal-to-nuclear (C2N) transition could help increase nuclear capacity in the U.S. to more than 350 gigawatts (GW). The existing fleet currently has a combined capacity of 95 GW and supplies half of the nation’s emissions-free electricity.

The transition would also bring tangible benefits back to energy communities with additional jobs, new economic activities, and improved environmental conditions, DOE said. The report is available here.

The Investigating Benefits and Challenges of Converting Retiring Coal Plants into Nuclear Plants report analyzed a hypothetical but representative coal power plant site and the surrounding region to investigate the detailed impacts and potential outcomes of a C2N transition.

After screening recently retired and active coal plant sites, the study team, comprised of multiple DOE national labs, identified 157 retired coal plant sites and 237 operating coal plants sites as potential candidates for a C2N transition.

Argonne National Laboratory, Idaho National Laboratory, and Oak Ridge National Laboratory conducted the study, which was sponsored by the Office of Nuclear Energy. 

The team further evaluated the potential coal power plant sites based on a set of ten parameters, including population density, distance from seismic fault lines, flooding potential, and nearby wetlands, to determine if they could safely host a nuclear power plant.

The team found that 80% of the potential sites, with over 250 GW of generating capacity, are suitable for hosting advanced nuclear power plants. These nuclear power plants vary in size and type and could be deployed to match the size of the site being converted.

While these coal power plant sites possess the basic characteristics needed, further investigation is required before a C2N transition can occur.

This includes an investigation into ownership of the plant, an in-depth evaluation of the remaining coal power plant infrastructure, and a consideration of other factors that could pose siting challenges.

After identifying a study site, the team examined how a C2N transition would bring significant financial, economic and environmental benefits to energy communities. 

According to the study, if a large coal plant site is replaced by a nuclear power plant of equivalent size, jobs in the region could increase by more than 650 permanent jobs for the NuScale design example in the case study. The U.S. Nuclear Regulatory Commission recently directed its staff to issue a final rule that certifies NuScale’s small modular reactor (SMR) design for use in the U.S.

These jobs are spread across the plant, the supply chain supporting the plant, and the community surrounding the plant and most typically come with wages that are about 25% higher than any other energy technology.

The occupations that would see the largest gains include nuclear engineers, security guards, and nuclear technicians, DOE said.

“Nuclear power plant projects could also benefit from preserving the existing experienced workforce in communities around retiring coal plants sites. Many of these workers already possess the necessary skills and knowledge requirements needed to help transition their skills to work at a nuclear power plant,” DOE said.

The study also indicates that as new jobs increase economic output and improve wages across the community, the economic well-being of community members in the region will improve.

Based on the case study, long-term job impacts could lead to additional annual economic activity of $275 million. This includes an increase of 92% tax revenue from the nuclear plant for the local county when compared to the tax revenue from the coal plant prior to its closure.

These tax payments would also increase the amount of money given to improve local schools, infrastructure projects, and public services.

DOE also noted that high construction costs “have consistently plagued the nuclear energy industry for years, but a C2N transition can help lower these costs — especially for first-of-a-kind development projects.”

The study shows that reusing coal infrastructure for new, advanced nuclear reactors can save around 15-35% in construction costs.

C2N projects could use the existing land, connection to the grid, and office buildings. Reusing the coal plant’s electrical equipment (transmission connection, switchyard, etc.) and civil infrastructure (roads, buildings, etc.) would also save millions of dollars upfront.

Next Steps

Other analyses can use this study’s methods to set up a site analysis based on a specific coal plant site and a specific type of nuclear reactor.

Conducting parts of this study for different sites would determine more accurate estimates of the environmental and economic impacts of the C2N transition on the region, DOE said.

These new analyses would also determine how specific nuclear plants could use certain infrastructure at the coal plant sites, resulting in more accurate estimates of savings associated with avoided construction costs.

First 35 State Plans to Build Out EV Charging Infrastructure Approved By Federal Government

September 16, 2022

by Paul Ciampoli
APPA News Director
September 16, 2022

The Biden Administration on Sept. 14 announced that more than two-thirds of electric vehicle (EV) Infrastructure Deployment Plans from states, the District of Columbia and Puerto Rico have been approved ahead of schedule under the National Electric Vehicle Infrastructure (NEVI) Formula Program.

“With this early approval, these states can now unlock more than $900 million in NEVI formula funding from FY22 and FY23 to help build EV chargers across approximately 53,000 miles of highway across the country,” the Department of Energy said in a news release.

The NEVI formula funding under the Bipartisan Infrastructure Law makes $5 billion available over five years.

Prior to the approval of plans announced on Sept. 14, state departments of transportation (DOTs) were able to begin staffing and activities directly related to the development of their plans.

After plan approval, states can be reimbursed for those costs and now have a wide range of options to use their NEVI Formula funding for projects directly related to the charging of a vehicle, which could include:

Proposed standards for EV charging require electricians working on EV charging infrastructure installation to be certified through the Electric Vehicle Infrastructure Training Program, a non-profit, industry-recognized training program.

Approved plans are available on the Federal Highway Administration (FHWA) and funding tables for the full five years of the NEVI Formula program can be viewed here.

The FHWA has reviewed state EV infrastructure deployment plans in close coordination with the Joint Office of Energy and Transportation and is working to approve all plans as quickly as possible.

The remaining plans will continue to be reviewed on a rolling basis as the plan approvals are finalized. As a plan is approved, state DOTs will be able to access funding to develop their EV charging infrastructure through the use of NEVI Formula Program funds.

FHWA is also working on related efforts to establish ground rules for how formula NEVI funds can be spent.

FHWA published a Notice of Proposed Rulemaking (NPRM) on proposed minimum standards and requirements for projects funded under the NEVI Formula Program and plans to finalize that rulemaking expeditiously now that the comment period has closed.

FHWA also proposed a Buy America waiver that will allow a short ramp up period for the domestic manufacturing of EV charging. The comment period for the waiver proposal is open through September 30, 2022.

FHWA and the Joint Office of Energy and Transportation will continue to provide direct technical assistance and support to states as plans are reviewed and approved, as well as throughout the lifetime of the NEVI Formula Program.

The joint office this summer announced a partnership to support EV charging with APPA, Edison Electric Institute, and National Rural Electric Cooperative Association to inform electric system investments and support state planning.

Michigan Governor Backs Effort To Reopen Nuclear Power Plant

September 15, 2022

by Paul Ciampoli
APPA News Director
September 15, 2022

Michigan Gov. Gretchen Whitmer recently sent a letter to the U.S. Department of Energy in support of Holtec International’s application for a federal grant under the Civil Nuclear Credit (CNC) program that would keep the Palisades nuclear power plant in Southwest Michigan operational.

On May 20, the 800-megawatt plant’s former owner, Entergy, made the decision to close the plant 11 days ahead of the planned May 31 shutdown “due to the performance of a control rod drive seal.”

The Palisades plant was shut down on May 20, when its current fuel supply ran out and the power purchase agreement with investor-owned Consumers Energy expired. The plant was sold to Holtec Decommissioning International in June 2022.

“With your support, Holtec plans to repower and reopen the Palisades,” Whitmer wrote in the Sept. 9 letter to Secretary of Energy Jennifer Granholm.

Holtec International applied for a CNC on July 5 in an effort to keep Palisades open.

If Holtec is approved for a CNC, Michigan is ready to support the company by identifying state funding and facilitating a power purchase agreement, Whitmer’s office said.

California Lawmakers Approve Legislation That Allows For Nuclear Plant’s Continued Operation

In related news, California lawmakers recently voted to approve legislation that allows for the possible extension of the operation of the Diablo Canyon Power Plant (DCPP), California’s only remaining operating nuclear power plant.

The vote to approve the measure followed on the heels of a recent California Senate Committee hearing related to the possible extension of the operation of the DCPP.

White House Report Assesses Impact Of Cryptocurrencies On The Electric Grid

September 12, 2022

by Peter Maloney
APPA News
September 12, 2022

A new White House report recommends government agencies should take steps to minimize the environmental impact associated with cryptocurrency mining.

The report, Climate and Energy Implications of Crypto-Assets in the United States, by the White House Office of Science and Technology Policy, calls for “the Environmental Protection Agency (EPA), the Department of Energy (DOE), and other federal agencies to provide technical assistance and initiate a collaborative process with states, communities, the crypto-asset industry, and others to develop effective, evidence-based environmental performance standards for the responsible design, development, and use of environmentally responsible crypto-asset technologies.”

Those steps should include standards for very low energy intensities, low water usage, low noise generation, clean energy usage by operators, and standards that strengthen over time for additional carbon dioxide-free generation.

If those measures prove to be ineffective, the Biden administration “should explore executive actions, and Congress might consider legislation, to limit or eliminate the use of high energy intensity consensus mechanisms for crypto-asset mining,” the report said.

The report also recommends the DOE work with the Federal Energy Regulatory Commission (FERC) and the North American Electric Reliability Corporation (NERC) to conduct reliability assessments of current and projected crypto-asset mining operations on electricity system reliability and adequacy and, if needed, develop or update reliability standards to ensure system reliability under the growth of crypto-asset mining.

In addition, the Energy Information Administration (EIA) and other federal agencies should consider collecting and analyzing information from crypto-asset miners and electric utilities to enable evidence-based decisions on the energy and climate implications of crypto-assets, the report said.

And the White House Office of Science and Technology Policy “could establish a National Science and Technology Council subcommittee to coordinate with other relevant agencies to assess the energy use of major crypto-assets,” the report said.

The United States is estimated to host about one-third of global crypto-asset operations, which currently consume about 0.9 percent to 1.7 percent of total U.S. electricity usage, a level similar to all home computers or all residential lighting in the United States, the report noted.

U.S. crypto-asset activity is estimated to result in approximately 25 to 50 metric tons of carbon dioxide per year or 0.4 percent to 0.8 percent of total U.S. greenhouse gas emissions, a level similar to emissions from diesel fuel used in railroads in the United States.

While there are a variety of cryptocurrencies, two are estimated to be responsible for most electricity usage. Bitcoin is estimated to account for 60 percent to 77 percent of total global crypto-asset electricity usage, and Ethereum is estimated to account for 20 percent to 39 percent of electricity usage.

Both Bitcoin and Ethereum use proof-of-work consensus mechanisms that are designed to require more computing power as more entities attempt to validate transactions in exchange for digital “coins” to help disincentivize malicious actors from attacking the network.

An alternative consensus mechanism, proof-of-stake, uses less energy but it is not as widely used. Ethereum, however, has promised to launch Ethereum 2.0, which would use a proof-of-stake consensus mechanism, the report said.

There are other potential uses for blockchain technologies, such as keeping track of environmental attributes such as renewable energy credits (RECs) or managing distributed energy resources (DERs), but the benefits of using those technologies would need to outweigh the additional emissions and other environmental externalities that result from their use, the report said.

MISO Now Includes Energy Storage As An Eligible Resources In Its Market

September 12, 2022

by Peter Maloney
APPA News
September 12, 2022

The Midcontinent Independent System Operator (MISO) recently included energy storage in its market portfolio for the first time.

The inclusion of Electric Storages Resources (ESRs) enables resources, such as batteries, pumped storage facilities and compressed air energy storage, to participate in MISO’s Energy and Operating Reserves Markets as supply or demand.

ESRs are flexible resources that can help reduce peak demands, manage congestion and provide backup power for major disruptions because they can respond quickly and switch between injection (discharge) and withdrawal (charge) modes, MISO said.

The near-term benefits of the new ESR model are modest due to the small volume of storage resources. However, the new model positions MISO ahead of the increased storage participation anticipated with higher penetration of renewables and distributed energy resources over the next five to 10 years, the ISO said.

In 2021, applications of energy storage projects surpassed wind power in MISO’s interconnection queue for the first time. Solar projects were the single highest category with nearly 44 gigawatts (GW) of projects, followed by about 12 GW of storage projects and about 9.1 GW of wind projects.

The Federal Energy Regulatory Commission (FERC) in 2016 issued a notice of proposed rulemaking that would require regional transmission organizations and independent system operators to revise their wholesale power tariffs to better remove barriers to RTO-run wholesale market participation by energy storage resources such as large battery systems.

In 2018, FERC, in Order 841, voted to remove barriers to the participation of electric storage resources in the capacity, energy and ancillary services markets operated by regional transmission organizations and independent system operators.

In October 2019, FERC approved compliance filings by the PJM Interconnection and the Southwest Power Pool in response to a landmark 2018 FERC order that adopted rules aimed at removing barriers to the participation of ESRs in wholesale power markets.

Adrienne Lotto To Become APPA’s New Senior VP of Grid Security, Technical and Operations Services

September 10, 2022

by Paul Ciampoli
APPA News Director
September 10, 2022

Adrienne Lotto, Vice President and Chief Risk and Resilience Officer at the New York Power Authority (NYPA), will join the American Public Power Association (APPA) as APPA’s new Senior Vice President of Grid Security, Technical and Operations Services, starting on October 1.  

“As we continue to enhance APPA’s existing portfolio of technical and operations services and programs and national mutual aid response as well as to build out new offerings to our members under our DOE cooperative agreements, Adrienne will bring her considerable energy, talent and intellect to help the excellent T&O team undertake this important work,” said Joy Ditto, President and CEO of APPA.

“Adrienne will also bring to bear her strategic abilities and relationships to help position APPA and public power vis-à-vis federal agencies such as DOE, the Department of Homeland Security, and the White House,” Ditto said.

“Public power plays a vital role in the lives of millions of Americans. I am grateful for the opportunity to join the APPA team, to partner with public power utilities and the federal government to ensure the sector remains secure and resilient into the future,” said Lotto. 

“Adrienne has been an asset to the New York Power Authority, leading our risk management strategies to ensure NYPA remains resilient in the face of disruptive events like COVID19, supply chain disruptions, and current and future potential impacts of climate on our critical infrastructure facilities,” said Justin E. Driscoll, NYPA’s interim president and CEO. “NYPA has benefitted from a strong partnership with APPA and we know Adrienne will be key in leading resilience strategies, strengthening the industries’ mutual aid response and informing research and development for the grid of the future. “

Lotto joined NYPA in October 2019 as Senior Director for Energy Security and Resilience Programs, a role that she served in until January 2021 when she was named as NYPA’s Chief Risk and Resilience Officer.

In her current role at NYPA, Lotto sets NYPA’s strategic risk management and resilience vision and implements, oversees and monitors all risk management and resilience activities of NYPA. She also determines NYPA’s risk tolerance in alignment with the risk appetite set by the Board of Trustees and the Executive Risk and Resilience Management Committee.

Lotto developed NYPA’s first emerging threats program to mitigate NYPA’s key operational processes and functions from external threats and has regularly presented to NYPA’s Board of Trustees and executives on risk trends by developing and implementing key risk indicators and other metrics for a going-forward strategic view of risk.

While at NYPA, she has also partnered with the Authority’s research and development team to ensure projects mitigate cyber security and supply chain risk to enhance resilience and clean energy.

In addition, she worked strategically with federal agencies including the Department of Homeland Security and Department of Energy and has worked to strengthen public-private partnerships  with New York State and trade groups and associations including APPA, the Electric Power Research Institute and the Large Public Power Council, among others.

Prior to NYPA, Lotto worked at the U.S. Department of Energy (DOE). From March 2018 to October 2018, she served as Chief of Staff in the DOE’s Office of Electricity and from March 2018 to October 2019 she served as Deputy Assistant Secretary of Infrastructure Security and Energy Restoration in the DOE’s Office of Cybersecurity, Energy Security and Emergency Response.

From July 2010 to March 2018, she served as Senior Deputy County Attorney for Risk and Compliance for the County of Putnam, N.Y.

Lotto received a Juris Doctor from the Pace University School of Law in New York and a Bachelor of Science from the State University of New York at Albany.

TVA Prices $500 Million Of New 30-Year Bonds

September 9, 2022

by Paul Ciampoli
APPA News Director
September 9, 2022

The Tennessee Valley Authority (TVA) recently priced $500 million of new 30-year maturity global power bonds, with an interest rate of 4.25 percent.

The offering marked TVA’s first 30-year bond since 2012 and the 4.25 percent rate is tied as the second lowest ever for a TVA bond of 30 years or longer in maturity. 

Despite an increase in interest rates in the first half of the year, long-term rates remain at historically low levels, creating an opportunity for TVA to secure long-term funding at attractive levels, TVA noted.

“We were pleased to see a window of stability develop in recent weeks, and an opportunity for TVA to take advantage of still historically low long-term rates,” said TVA’s Treasurer and Chief Risk Officer Tammy Wilson. “With one of the nation’s largest electric power systems, TVA is a natural issuer of longer-maturity bonds, and the success of this transaction shows the confidence investors have in TVA and the strength of the public power model.”

Strong demand for high quality investments of longer duration contributed to the success of the offering, TVA said. The bonds drew interest from a variety of investors including asset managers, pension funds, and insurance companies, among others. 

“The new 30-year bond fits well in TVA’s debt profile, which has a low number of bonds maturing in the early 2050s.  TVA debt levels remain at the lowest levels in over 30 years, and the new bonds will help TVA maintain stable interest costs for decades to come,” added Wilson.

Bank of America, Morgan Stanley, RBC Capital Markets, and TD Securities served as joint book-running managers for the transaction. The proceeds of the bonds will be used to refinance existing debt and for general power system purposes.

The new bonds will mature on September 15, 2052 and are not subject to redemption prior to maturity. Interest will be paid semi-annually each March 15 and September 15. Application has been made to list the bonds on the New York Stock Exchange.

TVA Board Holds Base Rates Steady, Increases Customer Credits for FY23

In other recent news, TVA’s Board of Directors on Aug. 31 maintained a stable course for wholesale base electric rates in fiscal year 2023, consistent with long-range financial plans to keep base rates flat through the end of the decade.

Over the past ten years, TVA’s effective wholesale power rate has maintained an average of about 7 cents per kilowatt-hour, giving families needed relief from the pandemic, and record inflation and fuel prices, TVA said.

In addition, due to strong operational and financial performance, the Board increased a previously approved Pandemic Recovery Credit back to 2.5 percent for all customers, providing about $230 million.

APPA’s Joy Ditto Details How Public Power Will Benefit From Inflation Reduction Act

September 8, 2022

by Paul Ciampoli
APPA News Director
September 8, 2022

Joy Ditto, President and CEO of the American Public Power Association (APPA), recently detailed how public power utilities are poised to benefit from the recently enacted Inflation Reduction Act (IRA).

President Biden on Aug. 16 signed into law the IRA, which will extend and expand various energy tax incentives and give public power utilities direct access to such credits through a refundable direct payment tax credit.

“We’ve been working on this for over twenty years,” said Ditto on a recent episode of White House Chronicle, which is hosted by Llewellyn King.

Since the 1992 Energy Policy Act, “we’ve been looking at this idea of parity or comparability in the tax code for publicly-owned utilities, for other not-for-profit utilities like rural co-ops so that we can really be unleashed in the marketplace as we continue to drive toward a cleaner energy future,” she said.

The mechanism in the IRA, a refundable direct pay credit, “allows us to take advantage of these tax credits that have been available to our for-profit brethren for many years both in the form of an investment tax credit and a production tax credit.”

In the short term, “we first have to get implementation through Treasury, through the Internal Revenue Service,” she noted.

“We will need to work” with the Treasury Department “to make sure that this is implemented correctly.” She said that there is already good precedent in current tax rules and regulations for many of the elements it will take for implementation.

Ditto noted, for example, while state and local entities do not file annual income tax returns, Treasury does already have a mechanism in place for them to claim a refund of federal gasoline excise taxes, from which they are exempt.  “We’re hopeful that IRS and Treasury” will use some of those precedents to implement this, she said.

The congressional Joint Committee on Taxation valued these tax credits at $22 billion a year, so “this means billions of dollars in incentives for us going forward,” she said.

Noting that she has spoken with several APPA members in recent weeks, Ditto said that “they are excited, ready to move on some of these projects that maybe they’ve been holding off on.” In the longer term, “You’re going to see a variety of projects come online in the public power side.”

APPA on September 27 from 2-3 p.m. EDT will host a one-hour webinar “Public Power and the Energy Tax Provisions of the Inflation Reduction Act.”

Registration is free and only open to APPA utility members (including joint action agencies and state associations).

More information about the webinar, including a link to register can be found here.

New DOE ‘Earthshot’ Program Aims To Cut Costs For Geothermal Energy

September 8, 2022

by Peter Maloney
APPA News
September 8, 2022

The Department of Energy (DOE) has set a new goal of making enhanced geothermal systems (EGS) more widely available by cutting its cost by 90 percent to $45 per megawatt hour (MWh) by 2035.

Enhanced geothermal systems drill wells deep below the Earth’s surface, at least 4,000 feet deep, and then inject fluids into human-made reservoirs where the natural heat and pressure creates steam that can be extracted and used to power a turbine.

Geothermal energy currently generates about 3.7 gigawatts (GW) in the United States, but a substantial amount of geothermal energy is not accessible with current technology. The DOE estimates that more than five terawatts of heat resources exist in the United States and that capturing a small fraction of that potential could affordably power over 40 million American homes.

The DOE said its Enhanced Geothermal Shot seeks to aggressively accelerate research, development, and demonstrations of EGS technology to better understand the subsurface, improve engineering to drill more wells faster, and capture more energy with larger wells and power plants.

EGS can also enable technologies for widespread deployment of geothermal heating and cooling that would allow buildings and whole communities to decarbonize, the DOE said.

Because geothermal technology relies heavily on drilling and construction, the workforce is similar to that of the oil and gas industry and presents an opportunity to transition skilled workers and entire communities from fossil fuels to clean energy, the DOE said.

“Achieving the Enhanced Geothermal Shot will go a long way toward reaching President Biden’s goals of 100% carbon pollution-free electricity by 2035 and net-zero emissions across the U.S. economy by 2050,” according to the DOE.

The DOE’s Enhanced Geothermal Shot is the fourth “Shot” announced in the agency’s Energy Earthshots Initiative that aims to break down scientific and technical barriers to tackling the climate crisis.

New York Awards $16.6 Million For Long-Duration Storage Projects

September 8, 2022

by Peter Maloney
APPA News
September 8, 2022

New York recently announced $16.6 million in awards for five long duration energy storage projects, as well as $17 million in competitive funding available for projects that advance development and demonstration of scalable long duration energy storage technologies, including hydrogen.

The five long duration projects awards are going to:

The additional $17 million in funding is targeted at the development and demonstration of energy storage projects that are 10 to over 100 hours in duration at rated power.

Parties submitting bids for the awards, which is being administered by the New York State Energy Research and Development Authority (NYSERDA), must only include innovative, long duration energy storage technologies that are not yet commercialized. NYSERDA will make awards in the following project categories: product development, demonstration projects, and federal cost-share projects.

The state agency said submissions should advance, develop or field-test hydrogen, electric, chemical, mechanical or thermal-electric storage technologies that will address cost, performance, siting and renewable integration challenges, such as grid congestion, hosting capacity constraints, and lithium-ion siting in New York City. The deadline for proposals is Oct. 17, 2022.

Fire Department regulations make siting lithium-ion batteries difficult in New York City.

This type of funding support is critical to ensuring that stored renewable energy from solar or wind is available for long periods of time and can be utilized to ensure a reliable grid of the future.” Doreen Harris, president and CEO of NYSERDA and co-chair of the Climate Action Council, said in a statement.

The projects are intended to support New York’s Climate Leadership and Community Protection Act, which aims to install 3,000 megawatts (MW) of energy storage by 2030 while facilitating further development to 6,000 MW of energy storage.

New York Gov. Kathy Hochul has directed NYSERDA and the departments of Public Service and the Environmental Conservation with developing a regulatory clean hydrogen framework to measure emissions reductions and health benefits. Those efforts also include a clean hydrogen demonstration project for district heating and cooling, a Clean Hydrogen Prize Program to support   clean hydrogen firms seeking to expand in the state, and the release of $27 million in NYSERDA Hydrogen Innovation funding to support product development and pilot and demonstrations projects,

Earlier this month, Maine and Rhode Island joined a New York-led multi-state clean hydrogen hub, expanding membership to include six states in the New England-MidAtlantic region.