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1 1 (March 26, 2021)

handle is hein.crs/govecum0001 and id is 1 raw text is: Congressional ______ *.Research Service Staying Nuclear?: Legal Challenges to State Subsidies for Aging Nuclear Power Plants and Related FERC Actions March 26, 2021 Nuclear power plants can produce large amounts of electricity with relatively low greenhouse gas (GHG) emissions, potentially assisting the United States in reducing such emissions. But the U.S. nuclear power industry faces a number of challenges, including high operating and maintenance costs; aging plants; competition from natural gas and renewable energy sources; and lawsuits from labor and environmental groups, among others. According to the U.S. Nuclear Regulatory Commission, 21 nuclear power reactors are currently undergoing decommissioning in the United States; two reactors are currently under construction. The federal government provides some financial support to the nuclear energy industry in the form of tax credits and other measures. But states have also increasingly sought to subsidize nuclear power plants that operate within their jurisdictions to preserve existing nuclear generation capacity and the jobs and tax base they provide to local communities. For example, under a 2018 law, the New Jersey Board of Public Utilities may issue state-created Zero Emissions Credits (ZECs) to eligible nuclear power plants. ZECs are state-created, state-issued subsidy instruments that represent the value of nuclear power generation's low GHG emission attributes. Participating nuclear power plants receive ZEC payments for qualified electricity generation from electric distribution utilities because state laws require utilities to purchase credits at a state-determined price. The New Jersey program, like similar programs in other states such as Connecticut, Illinois, and New York, is intended to preserve existing nuclear generation capacity in the state, thereby reducing greenhouse gas emissions. This Legal Sidebar examines key recent circuit court decisions related to state subsidization of the nuclear power industry and litigation against the Federal Energy Regulatory Commission (FERC)'s subsequent orders expanding the Minimum Offer Price Rule (MOPR) in the PJM Interconnection. For an overview and analysis of challenges facing the nuclear energy industry, see this CRS Report. Congressional Research Service https://crsreports.congress.gov LSB10585 CRS Legal Sidebar Prepared for Members and Committees of Congress

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