The Biden-Harris Administration has announced a significant investment in clean nuclear energy, aimed at creating union jobs and providing reliable power across the Midwest. Through the U.S. Department of Energy (DOE) and U.S. Department of Agriculture (USDA), over $2.8 billion will be allocated to support these initiatives.
The DOE's Loan Programs Office has closed a loan guarantee of up to $1.52 billion under the Inflation Reduction Act’s Energy Infrastructure Reinvestment program for Holtec Palisades. This funding will help restore and restart an 800-MW nuclear generating station in Covert Township, Michigan, marking the first effort by DOE to recommission an American nuclear power plant.
Additionally, USDA announced more than $1.3 billion in Empowering Rural America program awards for Wolverine Power Cooperative and Hoosier Energy. These funds aim to reduce electricity costs for their members by sourcing clean power from Holtec Palisades and other sources.
U.S. Secretary of Energy Jennifer M. Granholm emphasized the importance of nuclear power in tackling climate change: "Nuclear power is America’s largest source of carbon-free electricity... Under President Biden and Vice President Harris’ leadership, DOE and our partners across the federal government are working around the clock to ensure this vital source of clean electricity—and the vibrant workforce it supports—continues to power our nation for generations to come."
Agriculture Secretary Tom Vilsack highlighted the Administration's commitment to rural communities: "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."
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... Today’s announcement – which will catalyze the first recommissioning of a nuclear power plant in U.S. history – create hundreds of long-term union jobs."
Michigan Governor Gretchen Whitmer also praised the project: "Reopening Palisades will keep energy costs low, shore up domestic energy production, and secure Michigan’s competitiveness for future economic development."
The Palisades Nuclear Plant ceased operations in May 2022 but will now be upgraded to produce clean baseload power until at least 2051, pending licensing approvals from the U.S. Nuclear Regulatory Commission (NRC). The NRC has issued new guidance ensuring safe restart procedures.
The project is expected to create or retain up to 600 high-quality jobs in Michigan with approximately 45% being union labor upon restart. The facility's regularly scheduled refueling periods every 18 months will support over 1,000 additional jobs.
Holtec Palisades has signed long-term Power Purchase Agreements with Wolverine Power Cooperative and Hoosier Energy, aiming for zero emissions while reducing climate pollution significantly.
USDA investments aim to lower energy costs for rural communities served by Wolverine and Hoosier Energy by passing New ERA grant funds directly through to homes and businesses.
The project aligns with President Biden’s Justice40 Initiative, ensuring that disadvantaged communities benefit from federal investments like LPO financing.
DOE's Loan Programs Office currently handles applications totaling over $295.8 billion in requested loans as part of its efforts under various programs including Advanced Nuclear projects worth $64.89 billion as of September 30, 2024.
In addition, USDA's New ERA program continues its legacy as part of America's largest investment in rural electrification since Franklin Delano Roosevelt signed the Rural Electrification Act into law in 1936.
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