Gov. Jared Polis (D) of Colorado supports Nuclear Energy
- Lawmakers attempt to bolster nuclear for energy gaps
- Trump creates ‘favorable’ policy environment for sector
More states are opening their doors to the reawakening nuclear energy industry as fossil fuel plants retire and electricity demand creeps up.
State lawmakers are introducing spring legislation to repeal years-long moratoria on nuclear reactor development, set up tax credits for industry developers, and allow nuclear power to count toward clean energy goals, according to data compiled by Bloomberg Government.
The push comes as data centers, electric vehicles, and extreme weather are set to drive the nation’s electricity needs to new highs. Meanwhile, 12 gigawatts of capacity—enough electricity to power 9 million homes—is scheduled to come offline this year, mostly due to coal and natural gas plants retiring.
President Donald Trump made clear in his first-day executive orders on energy that nuclear power is worth investing in. That signal is creating a “more favorable policy environment” for the sector, said Tom Dougherty, partner at Womble Bond Dickinson’s Denver office.
It’s not just states with an established nuclear industry seeking out the energy source. Many are realizing that “while wind and solar are definitely part of the equation, they can’t meet demand,” Dougherty said. Natural gas was often considered a “bridge fuel” to reduce reliance on coal, but that source has its own challenges emerging—environmental and otherwise, he said. That leaves nuclear.
Sending a Signal
The resurging interest in nuclear energy has been developing over the last few years, but it’s sped up lately because the country’s electricity infrastructure isn’t keeping pace with demand growth, Dougherty said.
“There’s no question that the conversation around energy policy has done a 180 in the last two years,” said Illinois state Sen. Sue Rezin (R). “The conversation has shifted from a lot more renewables and no nuclear to, ‘How can we send a signal that we would like nuclear in our state?’”
Rezin is sponsoring S.B. 1527, which seeks to repeal a ban on developing nuclear reactors over 300 megawatts. The state already decided in 2023 to allow the construction of smaller reactors after a three-decade pause.
“Removing barriers and signaling support” for nuclear is a trend across the country right now, said Rezin, who is also co-chair of the National Conference of State Legislatures’ Task Force on Energy Supply. States that would have never considered nuclear power in the past are starting to explore the industry, she said.
Colorado, for instance, had only one nuclear plant in the state’s history, and it closed in 1989 after a decade of operation. But Gov. Jared Polis (D) in March signed a law adding nuclear to the statutory definition of “clean energy,” a move that lets utilities use nuclear power to meet their legally binding emissions reduction targets.
Maryland, where 1,273-megawatt coal plant Brandon Shores is scheduled to retire in June, is considering a similar bill.
Other states with functioning nuclear plants are pursuing additional facilities to meet growing energy needs.
Michigan is slated to re-power the 800-megawatt Palisades nuclear facility this year with a $1.52 billion loan from the US Department of Energy. Pennsylvania’s Three Mile Island—the site of the country’s worst commercial nuclear accident in history—also aims to restart to fuel Microsoft data centers.
Open for Business
Montana state Rep. Gary Parry (R) said he’s trying to signal the state’s door is open to nuclear energy after the state repealed its decades-long moratorium on new projects four years ago.
His legislation, H.B. 623, communicates the legislature’s understanding that Montana will store its own spent nuclear fuel if and when projects come. It signals to the federal Nuclear Regulatory Commission that Montana would be a responsible state partner for future developments, Parry said.
Cold weather is straining Montana’s electric grid, leading to concerns about long-term energy reliability, he said. The state’s extreme temperatures and small populations have led to the highest per-capital energy consumption of any state, according to the Energy Information Administration.
Parry says there’s room for all energy sources, including renewables, on the grid. But Montana has long relied on fossil fuels—coal supplied 45% of in-state electricity generation as of 2023—so recent coal plant closures have only exacerbated reliability concerns, Parry said.
But public perception is one of the main barriers, along with finding a permanent solution to storing nuclear waste, to propping up the industry, Dougherty said.
The industry still carries a historic legacy regarding safety hazards associated with nuclear waste.
The majority of Americans support building more nuclear energy plants, according to a 2024 Pew Research Center survey. But “as much as nuclear power has evolved,” Dougherty said, “there’s still a fair amount of public sentiment that, to put it mildly, is concerned.”
Source: Bloomberg Law
