As part of President Biden’s Investing in America agenda, the Biden-Harris Administration has announced over $2.8 billion to support clean power in the Midwest. The U.S. Department of Energy (DOE) and U.S. Department of Agriculture (USDA) revealed a loan guarantee up to $1.52 billion for Holtec Palisades under the Inflation Reduction Act’s Energy Infrastructure Reinvestment (EIR) program to restart an 800-MW nuclear station in Covert Township, Michigan.

Additionally, USDA will provide more than $1.3 billion through its Empowering Rural America (New ERA) program to two rural electric cooperatives—Wolverine Power Cooperative and Hoosier Energy—to reduce electricity costs from Holtec Palisades and other clean energy sources.

“Since day one of their Administration, President Biden and Vice President Harris have been clear that rural electric cooperatives are the backbone of our nation and investing in them is a top priority,” said Agriculture Secretary Tom Vilsack.

U.S. Secretary of Energy Jennifer M. Granholm emphasized the importance of nuclear power: “Nuclear power is America’s largest source of carbon-free electricity, supporting hundreds of thousands of direct and indirect jobs across the country.”

White House National Climate Advisor Ali Zaidi noted, “From Day One, President Biden and Vice President Harris have taken historic steps to keep existing nuclear plants from shutting down, restart previously shuttered nuclear plants, and bring new reactors online.”

The Palisades Nuclear Plant will be upgraded to produce clean baseload power until at least 2051 pending regulatory approvals from the U.S. Nuclear Regulatory Commission (NRC). John Podesta, Senior Advisor to the President for International Climate Policy stated: “This project will bring a retired nuclear power plant back to life for the first time in American history.”

U.S. Deputy Secretary of Energy David M. Turk, USDA Deputy Secretary Xochitl Torres Small, and White House National Climate Advisor Ali Zaidi are scheduled to tour Holtec Palisades Training Center later today.

The restart is expected to create or retain up to 600 high-quality jobs in Michigan with approximately 45% being union labor upon restart. It will also help avoid an estimated 4.47 million metric tons of greenhouse gas emissions per year.

Holtec Palisades has signed long-term Power Purchase Agreements with Wolverine Power Cooperative and Hoosier Energy which serve rural communities in Michigan, Illinois, Indiana reducing climate pollution significantly.

USDA’s investments aim to lower energy costs for rural communities by passing grant funds directly through member electric cooperatives.

LPO works with borrowers on job creation during construction and operations adhering to strong Community Benefits Plans ensuring community engagement regarding plant operations.

DOE has received applications totaling over $295.8 billion for loans as of August 2024 with $43.9 billion issued creating over 47,000 permanent jobs.

A new Pathways to Commercial Liftoff report on nuclear was released by DOE reflecting industry progress along with a report analyzing potential deployment at existing retired coal power plants identifying significant deployment potential.

The announcement marks the first closing under Title 17 Clean Energy Financing Section 1706 authorized by President Biden's Inflation Reduction Act aimed at repowering nonoperational energy infrastructure supporting reinvestment underscoring commitment towards building America's clean energy future.