West Virginia Governor Signs Bill That Lifts Ban On Nuclear Power In The State
February 15, 2022
by Paul Ciampoli
APPA News Director
February 15, 2022
West Virginia Gov. Jim Justice recently signed into law a bill that lifts the state’s ban on the construction of nuclear power plants.
“I call upon our Legislature to continue to research and monitor nuclear initiatives around the nation to ensure appropriate regulatory or safety measures are in place as new technologies are developed and implemented,” wrote Justice.
He said that the legislation, Senate Bill 4, “is a positive step in modernizing our state’s regulatory environment, but we must work to ensure only positive outcomes from this legislation by continually evaluating any concerns and implementing best practices in any regulation that may be required.”
Rochelle, Illinois, Shop Local Credit Program With Public Power Utility Well Received By Customers
February 14, 2022
by Paul Ciampoli
APPA News Director
February 14, 2022
A credit program aimed at supporting small businesses in Rochelle, Ill., through a credit on Rochelle Municipal Utilities (RMU) bills has been quite successful, said Michelle Pease, Community Development Director for the City of Rochelle.
“The Shop Local RMU credit program is an economic tool adopted by the City of Rochelle to encourage our residents and businesses to patronize small local businesses who were forced to close during the COVID-19 pandemic,” noted Pease.
Participating in the Shop Local RMU credit program provides a $60 reimbursement in the form of a credit on a future Rochelle Municipal Utility (RMU) bill for qualifying purchases at retail/service shop and restaurant establishments located within the RMU service territory.
Each residential household, commercial/retail and industrial brick and mortar business within RMU’s service territory qualifies.
The program started in spring 2020 and was designed to be an economic tool adopted by the City of Rochelle to encourage residents to patronize local businesses who were forced to close during the COVID-19 pandemic. “We wanted to help our local businesses make it through the forced closings due to the pandemic,” said Pease.
She said that the program was very successful and well received by residents and business owners. The program started out allowing three credits ($180) per household, then went to unlimited credits, then back to only three credits between August 1, 2021 to December 31, 2021. The program ended December 31, 2021.
“I would recommend programs like this during times of crisis and certainly 2020-2022 has been a time of crisis,” said Jeffrey Fiegenschuh, City Manager for the City of Rochelle.
“Our utility is uniquely positioned to be able to afford such a program. Our finances are stable, and our load continues to grow,” he said.
Although there was a significant cost associated with funding the program, “the goal of our Mayor and City Council was to assist our local businesses affected by state mandated closures. This program and others funded by the city (direct aid grants) helped make this city council priority a reality. Of all the programs I was able to be a part of in my career, this program is one that I am most proud of.” he said.
GAO Asked To Review NRC’s Advanced Nuclear Approval Process
February 14, 2022
by Peter Maloney
APPA News
February 14, 2022
Two members of Congress are calling on the Government Accountability Office (GAO) to assess whether the Nuclear Regulatory Commission (NRC) is equipped to approve in a timely fashion advanced nuclear reactors that are vying to come to market.
“Recent NRC actions concerning certain licensing activities raise questions about the agency’s capability to manage effectively first-mover applications for new, advanced technologies,” Senator Shelley Moore Capito (R-W.Va.), and Congresswoman Cathy McMorris Rodgers (R-Wash.) wrote in a Feb. 4 letter to the GAO.
Capito and Rodgers are, respectively, the Ranking Member of the Senate Environment and Public Works Committee and the Republican Leader of the House Energy and Commerce Committee.
The Department of Energy’s Advanced Reactor Demonstration Program (ARDP) has been pursuing new reactor designs that are expected to be smaller, safer, and more economically competitive than the Light Water Reactor technology currently in use.
The Department of Energy’s efforts are bolstered by legislation, including the 2018 Nuclear Energy Innovation and Modernization Act and the recently enacted Infrastructure Investment and Jobs Act that appropriated nearly $2.5 billion for the DOE’s advanced nuclear program.
A key component of moving advanced reactor designs forward is implementation of a more streamlined regulatory process. The Nuclear Energy Innovation and Modernization Act, for example, directed the NRC to develop a regulatory framework to license and oversee advanced reactor technologies no later than Dec. 31, 2027, the letter noted. But recent NRC actions “concerning certain licensing activities raise questions about the agency’s capability to manage effectively first-mover applications for new, advanced technologies,” the letter’s authors wrote.
The letter cites a 2019 report to Congress, in which the NRC stated it is “fully capable of reviewing and making safety, security, or environmental findings on an advanced reactor design if an application were to be submitted today.” The authors noted, however, that the same report acknowledged that “the efficiency of existing processes and requirements could be improved.” And in a draft white paper, the authors noted, NRC staff said the agency would “leverage flexibilities in existing regulations and identify options for changes to regulatory requirements that could provide additional flexibilities.”
In the letter, the authors said they “seek to understand if and how those improvements are being pursued and how NRC staff, in communication with the license applicant, will leverage existing flexibilities.”
Among other things, Capito and Rodger are asking the NRC to explain how it is:
- Assessing various organizational approaches to establish the most effective structure to review applications efficiently;
- Implementing flexible regulatory approaches to review forthcoming applications, and
- Working with license applicants during pre-application and initial license review phases to communicate key issues.
A bill approved in February lifted a 1996 ban on nuclear power production in West Virginia. Shortly after the bill was signed into law, Capito, during a committee hearing, cited the “tremendous potential” of advanced nuclear reactors and noted that shuttered coal plants could provide ready potential sites for the deployment of that technology.
West Virginia’s Democratic senator, Joe Manchin, is also exploring the potential to use advanced nuclear technology in the state at retired coal plants. And during an April Atlantic Council event, Manchin and Jeff Lyash, president and CEO of the Tennessee Valley Authority, both voiced support for deploying small modular reactors at retired coal plants.
Last January, the Utah Associated Municipal Power Systems signed agreements with NuScale Power to facilitate to deploy NuScale’s small modular reactors at the Idaho National Laboratory.
In Washington, the Grant County Public Utility District with Energy Northwest and X-energy have signed a memorandum of understanding for the development of an advanced nuclear reactor demonstration project.
Maine Governor Unveils Legislation That Opens Door To Consumer-Owned Utility Option
February 14, 2022
by Paul Ciampoli
APPA News Director
February 14, 2022
Maine Gov. Janet Mills on Feb. 2 unveiled legislation that, among other things, opens the door for state utility regulators to evaluate whether an investor-owned utility or a consumer-owned utility is in the best interests of the state.
The legislation establishes a process under which the Maine Public Utilities Commission (PUC) determines whether an electric utility is unfit to provide safe, adequate, and reliable service at just and reasonable rates to Maine ratepayers.
If the PUC determines that sale of the utility is necessary to protect the interests of ratepayers, it will then invite bids from qualified buyers and select the purchase proposal that provides the most benefits to customers in the form of better service and lower rates at a fair purchase price.
Additionally, the legislation stipulates that, in the event the PUC invites bids from qualified buyers, it must also consider a bid to create a consumer-owned, quasi-municipal corporation for the purpose of purchasing the utility.
This creates a mechanism whereby the PUC could evaluate whether an investor-owned utility or a consumer owned utility is in the best interests of the State.
The bill also requires that the PUC establish minimum standards of service that utilities must deliver for Maine ratepayers. The legislation also empowers the PUC with enhanced authority to crack down on utilities that do not meet these standards by imposing harsher penalties and, if necessary, even forcing the sale of the utility for inadequate service.
The legislation was developed by the Governor’s Energy Office in conjunction with Maine’s new Public Advocate Bill Harwood.
The legislation further requires the PUC to set minimum standards for safe, reasonable, and adequate service to Maine customers.
It then requires the PUC to issue quarterly reports on whether a utility is meeting these minimum standards. These reports will address utility operations, customer service, such as billing, and initiatives to combat climate change, such as interconnecting to solar projects.
If these quarterly reports determine that a utility is consistently failing to meet this standard, then the legislation requires the PUC is to impose new, higher administrative penalties — up to $1 million or 10 percent of the utility’s annual revenue — to force the utility to improve service.
“This new approach establishes an ongoing system of review by the PUC that is a transparent and an alternative accountability mechanism to traditional utility oversight,” according to the governor’s office.
In addition, the bill provides for periodic audits for Maine’s distribution and transmission utilities to ensure that the utility’s cost of providing service are consistent with the estimates used to set rates.
Whenever Maine’s utilities have gone more than five years without a rate case, the legislation requires the utility to make a filing with the PUC comparing its current actual expenses to the estimates used in previous rate cases. If the discrepancy is greater than 10 percent, the PUC may conduct a financial audit. This new mechanism allows the PUC to review the utility’s financial books and records outside of a traditional rate case.
The legislation will be considered by the Maine Legislature’s Energy, Utilities, and Technology Committee.
Maine Group Says Legislation Falls Short
In response to the legislation, Our Power, a Maine group working to create a statewide, consumer-owned utility, said the proposal falls short.
While the governor’s bill “is a start, more details are needed to provide a viable path for consumer ownership,” said former Deputy Director of the State Planning Office, Sue Inches. “To allow for this transformative change, which would offer democratic governance and capital at half the cost, the legislation needs to establish specific and sufficient timeframes, resources, guidance, and public process.”
Our Power has been collecting signatures for a ballot initiative that would create the Pine Tree Power Company, a locally-owned, not-for-profit electric utility for parts of Maine currently served by Central Maine Power and Versant.
Our Power recently acknowledged that it was unable to collect enough signatures for a ballot initiative this year and will continue to collect names for a 2023 attempt, according to an article in Maine’s Portland Press-Herald.
DOE To Provide $2.91 Billion To Boost Production Of Advanced Batteries
February 13, 2022
by Paul Ciampoli
APPA News Director
February 13, 2022
The U.S. Department of Energy (DOE) recently issued two notices of intent to provide $2.91 billion to boost production of advanced batteries, including for electric vehicles and energy storage, as directed by the bipartisan infrastructure law.
DOE intends to fund battery materials refining and production plants, battery cell and pack manufacturing facilities, and recycling facilities that create good-paying clean energy jobs.
The funding is expected to be made available in the coming months.
In June 2021, DOE published a 100-day review of the large-capacity-battery supply chain, pursuant to Executive Order 14017, America’s Supply Chains. The review recommended establishing domestic production and processing capabilities for critical materials to support a fully domestic end-to-end battery supply chain.
The infrastructure law allocates nearly $7 billion to strengthen the U.S. battery supply chain, which includes producing and recycling critical minerals without new extraction or mining, and sourcing materials for domestic manufacturing.
Funding from the law will allow DOE to support the creation of new, retrofitted, and expanded domestic facilities for battery recycling and the production of battery materials, cell components, and battery manufacturing.
The funding will also support research, development, and demonstration of second-life applications for batteries once used to power EVs, as well as new processes for recycling, reclaiming, and adding materials back into the battery supply chain.
Both forthcoming opportunities are aligned with the National Blueprint for Lithium Batteries, guidance released last year by the Federal Consortium for Advanced Batteries and led by DOE alongside the Departments of Defense, Commerce, and State. The blueprint details a path to ensuring a domestic battery supply and accelerating the development of a domestic industrial base by 2030.
Those interested in applying for the upcoming funding opportunities are encouraged to register to receive notifications about key dates within the application process by signing up for the Vehicle Technologies Office newsletter.
The notices are available here.
Click here for resources and opportunities for public power tied to the infrastructure law curated by the American Public Power Association.
Small Modular Reactor Project In Idaho Achieves Major Milestone
February 13, 2022
by Paul Ciampoli
APPA News Director
February 13, 2022
Carbon Free Power Project, LLC (CFPP), a wholly owned subsidiary of Utah Associated Municipal Power Systems, continues to advance the development and deployment of its first-of-a-kind small modular reactor nuclear plant at the U.S. Department of Energy’s Idaho National Laboratory near Idaho Falls, Idaho.
CFPP successfully and safely completed field investigation activities at the site in January 2022, a major milestone for the project.
In August 2021, CFPP initiated field activities at the CFPP site at Idaho National Laboratory.
This phase of field work involved detailed geotechnical surface and subsurface investigations to further characterize the geologic properties underlying the site and support the analysis of potential volcanic and seismic hazards.
It also established a groundwater monitoring network to support protection of the Eastern Snake River Plain Aquifer and commissioned an on-site meteorological monitoring station to collect site-specific atmospheric data.
Safety performance has been outstanding on the project through completion of the site investigation activities at the CFPP site, CFPP said.
In parallel with the completion of field work at the CFPP site, the project is also moving forward with the development of a combined license application in accordance with requirements of the U.S. Nuclear Regulatory Commission (NRC)
Analysis of the data collected from the site investigation efforts, as well as a two-year monitoring campaign, will be presented in the application to address key safety and environmental considerations associated with the siting and licensing for the reactor.
The application will also provide additional project specific facility design information, which will support the NRC’s safety and environmental reviews as well as public consultations.
Development of the combined license application is being managed by Fluor Corporation, under contract with CFPP, with support and technical expertise from NuScale Power.
The CFPP will deploy a NuScale power plant that is based on NuScale’s small modular reactor technology.
In addition to addressing the suitability of the site and the environmental impacts assessment, the combined license application will also present information related to the applicant’s qualifications and the facility security and emergency plans.
Completion of the combined license application and submittal to the NRC is scheduled for early 2024. Startup and commissioning of the CFPP is planned for 2029.
City Utilities Of Springfield, Mo., Partners With United Way For Plant Demolition Raffle Event
February 13, 2022
by Paul Ciampoli
APPA News Director
February 13, 2022
City Utilities Of Springfield, Mo., is partnering with United Way of the Ozarks for a raffle event with the winner detonating the implosion of power plant stacks.
After providing electricity to Springfield for over 60 years, the five generators inside James River Power Station have been retired and the stacks are coming down.
All proceeds from the raffle event, “Blasting for the Better,” will support United Way of the Ozarks.
Over the past few months, demolition crews have been removing exterior components of the partially retired power generation station with one of the final steps being to collapse the four stacks on the south side of the main building.
Details on the demolition, history of James River Power Station, and a schedule of the implosion, including safety requirements, will soon be available, the public power utility reported on Feb. 9.
DOE Establishes $6 Billion Civil Nuclear Credit Program
February 13, 2022
by Paul Ciampoli
APPA News Director
February 13, 2022
The U.S. Department of Energy (DOE) recently a notice of intent (NOI) and request for information (RFI) on the implementation of the infrastructure law’s $6 billion civil nuclear credit program, which supports the continued operation of U.S. nuclear reactors.
Both the NOI and RFI “are critical first steps to help avoid premature retirements of nuclear reactors across the country,” DOE said.
The newly enacted infrastructure law created the Civil Nuclear Credit Program (CNC), allowing owners or operators of commercial U.S. reactors to apply for certification and competitively bid on credits to help support their continued operations.
The RFI seeks input on the structure and execution of the CNC program, including the certification process and eligibility criteria, invitations to submit bids for credits, and the allocation of credits.
DOE seeks input from all interested parties, including but not limited to nuclear reactor owners and operators, state and local regulators and officials, Tribes, impacted community partners, environmental advocacy groups, and other partners involved in clean energy and electric generation, distribution, and planning.
Under the law, applications must prove that the reactor will close for economic reasons and demonstrate that closure will lead to a rise in air pollution.
DOE must also determine that the Nuclear Regulatory Commission has reasonable assurance that the reactor will continue to operate safely. Credits will be allocated over a four-year period beginning on the date of selection to reactors that are certified by the Department.
The NOI informs interested parties of DOE’s plans to seek applications and provide potential applicants the opportunity to submit voluntary, non-binding expressions of interest in the CNC program.
Responses to the NOI and RFI addressing general program design and bid process are requested no later than 5:00 p.m. Mountain Time on March 17, 2022.
Substantive responses relating specifically to the certification process should be submitted by 5:00 p.m. Mountain Time on March 8, 2022 to ensure that this feedback can be used to meet DOE’s expedited schedule.
Additional information is available here.
APPA Weighs In On Proposal To Revise Definition Of Waters of the United States
February 13, 2022
by Paul Ciampoli
APPA News Director
February 13, 2022
Since 2015, jurisdiction under the Clean Water Act (CWA) has been in a near constant state of flux, creating a challenging regulatory landscape for project developers and the regulatory community. On Feb. 7, the American Public Power Association (APPA) submitted comments to the Environmental Protection Agency (EPA) and the U.S. Army Corps of Engineers in response to a proposed rule that would revise the definition of WOTUS.
The proposed rule is considered a first step and replace the Navigable Water Protection Rule (NWPS) and would codify the pre-2015 definition of WOTUS, with amendments to incorporate the EPA’s interpretation of Supreme Court case law.
APPA’s comments voiced concern about elements of the proposed rule that unduly expanding the definition of WOTUS.
“APPA supports a clear and implementable definition of WOTUS,” it said. “In order for the electric utility sector to construct, operate, and maintain facilities in support of the clean energy transition and meet their service obligations, the WOTUS definition must be easily understood and uniformly applied across the country.”
APPA has over the years provided to the agencies its position with respect to developing a clear and easily implementable WOTUS definition and the Proposed rule marks the latest development in nearly two decades of administrative proceedings, not to mention litigation, it noted.
The trade group voiced concerns with the application of the Commerce Clause in determining whether water bodies meet one or more of the WOTUS jurisdictional tests under the proposed rule. “Specifically, non-navigable waterways should not be subject to WOTUS jurisdiction, however, they could be regulated under state authorities,” APPA said.
According to APPA, the pre-2015 WOTUS definition allowed for an overly broad traditional navigable water interpretation.
EPA and the Corps claimed jurisdiction, under 1986 regulations, over waters used by interstate or foreign travelers for recreational or other purposes, with no foundation in actual navigable waters, APPA said.
“APPA is concerned that the proposed rule will unduly expand the waters that would be subject to WOTUS which will result in regulatory uncertainty for our members as they try to advance clean energy infrastructure projects.”
APPA said it does not support the designation of interstate waters as a standalone category of WOTUS. “We do not concur with the Agencies position that these waters by virtue of crossing state lines can be considered WOTUS irrespective of whether they are navigable,” it said.
The proposed rule restores interstate waters as a standalone category, once again placing such waters on equal footing as traditional navigable waters and territorial seas, it added.
APPA also voiced concerns with the proposal by EPA and the Corps to include “other waters” as a category of jurisdictional waters.
“We believe their inclusion in the definition will result in a case-by-case application that is applied inconsistently by different Corps districts, creating confusion, delay, and leading to additional regulatory requirements and burdens.”
The proposed rule goes farther than the text of the 1986 regulations, APPA said, by expressly asserting jurisdiction over “other waters” under the relatively permanent and significant nexus standards from a 2006 case (Rapanos v. United States).
“The ‘other waters’ category could be applied in an exceptionally broad manner by regulators and serve as a fallback for the agencies to assert jurisdiction over a wide range of features,” APPA argued.
At the same time, APPA said that it appreciates that the agencies have maintained the waste treatment system exclusion from the definition of WOTUS.
This exclusion “is critical for electric utilities to provide reliable and affordable electricity across the country, including to rural areas, based on the importance of features such as cooling and settling ponds to our generation and transmission facilities. APPA recommends the agency define waste treatment systems.”
Construction Starts On Offshore Wind Farm That Will Provide Energy To LIPA
February 12, 2022
by Paul Ciampoli
APPA News Director
February 12, 2022
Construction of New York’s first offshore wind project kicked off last week. The South Fork Wind project was selected under a 2015 Long Island Power Authority (LIPA) request for proposals to address growing power needs on the east end of Long Island.
“In 2017, the forward-thinking approach of the LIPA Board of Trustees led to the approval of the South Fork Wind project at a time when there were no other power purchase agreements for offshore wind in the country,” said LIPA CEO Thomas Falcone. “As the first offshore wind farm in New York, South Fork Wind is the beginning of a new industry for our region that will be vital to New York meeting its goal of a zero-carbon electric grid by 2040.”
The start of construction was recognized at an event attended by New York Gov. Kathy Hochul, alongside Secretary of the Interior Deb Haaland and other elected officials.
The project will be located about 35 miles east of Montauk Point and its 12 Siemens-Gamesa 11 MW turbines will generate approximately 130 megawatts of power.
Its transmission system will deliver clean energy directly to the electric grid in the Town of East Hampton.
The construction milestone follows the approval by the Bureau of Ocean Energy Management’s (BOEM) last month of the project’s Construction and Operations Plan (COP).
The COP outlines the project’s one nautical mile turbine spacing, the requirements on the construction methodology for all work occurring in federal ocean waters, and mitigation measures to protect marine habitats and species.
BOEM’s final approval of the COP follows the agency’s November 2021 issuance of the Record of Decision, which concluded the thorough BOEM-led environmental review of the project.
New York State has five offshore wind projects in active development, the largest portfolio in the nation. This current portfolio totals more than 4,300 megawatts (MW).
Achieving the State’s 9,000 MW by 2035 goal will generate enough offshore wind energy to power approximately 30 percent of New York State’s electricity needs.