our bills to enable harnessing power from small modular nuclear reactors for the grid and locating one or more in Southwest Virginia emerged from the Virginia House of Delegates and are now up for Senate consideration.
House Bill 2333 promotes the development of small modular nuclear reactors by requiring the State Corporation Commission to establish a small modular nuclear reactor pilot program.
House Bill 1780 requires certain Southwest Virginia counties to enter into a revenue-sharing agreement for the construction of a small modular nuclear reactor facility.
House Bill 1779 would establish a nuclear education grant fund program for state universities and colleges and House Bill 2386 creates a power innovation fund to promote research and development including nuclear.
Small modular reactors are the units that power nuclear submarines and ships. Youngkin’s call was for Virginia to become the first U.S. state to develop the technology needed to convert that power to the energy grid.
While the governor said “in Southwest Virginia,” he didn’t specify where.
House Bill 1780, carried by Del. Israel O’Quinn, R-Bristol, identifies the likely host counties for at least one such facility and spells out a revenue and cost sharing agreement.
It would require the counties of Buchanan, Dickenson, Lee, Russell, Scott, Tazewell and Wise and the city of Norton to enter into a perpetual revenue-sharing agreement regarding a “certain small modular reactor plant or facility to be located in one of these localities,” according to the summary.
“Gov. Youngkin and the Department of Energy are serious about deploying small modular reactors in Virginia. The technology has been used on naval vessels since the 1950s and can provide reliable, affordable, carbon-free energy in a safe and efficient manner. HB 2333 is the first big step in this process,” O’Quinn said Wednesday.
“We are already working with the governor to ensure that Southwest Virginia can be the location for some of this exciting activity. We know we have abandoned and reclaimed mine lands that can serve as a perfect site,” O’Quinn said.
“HB 1780 lays the groundwork for the potential host localities to share in the revenue from the SMR, but also in the revenue from the subsequent supply chain that will inevitably develop. As these projects get closer to reality, HB 1780 will allow these localities to properly plan and lay the groundwork for the numerous possibilities,” he said.
“While it may be tempting to roll the dice and hope that your locality is the host locality, and thus keep all the revenue, it’s more prudent to ensure that the activity has a ripple effect across the region. The host locality will still retain an additional six percent of revenues, but the remaining monies will be split based on a pro-rata share of the population,” O’Quinn said.
The bill establishes that “the host locality’s revenue from such facility shall be distributed to the other localities in accordance with the following percentages – 16% each for the counties of Tazewell and Wise; 12% each for Buchanan, Lee, Russell and Scott; 10% for Dickenson County; and 4% for the city of Norton. The host locality shall retain the remaining 6% of the revenue, according to the legislation.
The bill requires any direct costs of infrastructure improvements incurred by the host locality for purposes of the small modular reactor plant or facility to be allocated among the localities in the same proportion as the revenues from the plant or facility.
O’Quinn’s bill emerged from the House Finance Committee by a 20-2 margin and passed the full House with bipartisan support 89-10
House Bill 2333 was approved by the House by a 56-43 margin. It would make development and operation of a reactor the policy of the Commonwealth with a goal of having one unit operational by the end of 2032.
Under the program, “any entity that holds a license from the U.S. Nuclear Regulatory Commission to construct or operate one or more existing nuclear facilities at the time of the application may apply to the State Corporation Commission for a certificate of public convenience and necessity to complete site permitting and construct and operate one or more small modular nuclear reactors,” according to the bill summary.
Under the bill, the pilot program “will be limited to three small modular nuclear reactor sites” in the Commonwealth. It does not specify a location.
HB 1779, also carried by O’Quinn, would establish the Nuclear Education Grant Fund and Program, to be administered by the State Council of Higher Education for Virginia. It would award grants on a competitive basis to any public institution of higher education or private institution of higher education in the Commonwealth that seeks to establish or expand a nuclear education program.
It was approved by the House 93-6 and assigned to the Senate Committee on Education and Health.
HB 2386, also an O’Quinn bill, creates the Virginia Power Innovation Fund with funding to be used solely for the purposes of research and development of innovative energy technologies, including nuclear, hydrogen, geothermal, pumped storage hydropower, battery storage and manufacturing and carbon capture and utilization.
It was approved 89-10 on Tuesday by the House of Delegates.
“HB 1779 and HB 2386 are also very important pieces of this puzzle,” O’Quinn said. “We must begin the development of a qualified workforce and have folks with the proper certifications to tackle this exciting new venture. This industry holds a world of possibilities and we need to get started now.”
