To modernize the industry, nuclear power is making the transition toward smaller reactors. But a report from Taxpayers for Common Sense claims federal subsidies to help the industry along are a losing bet.

According to the group, the Department of Energy has spent more than $1.2 billion on small modular reactors, and could spend another $5.5 billion over the next decade to develop and demonstrate the new design.

Michael Maragos, senior policy analyst of energy and natural resources with Taxpayers for Common Sense, said there are a slew of supports for the nuclear industry up and down the supply chain.

"But the nuclear power industry is, by and large, struggling," said Maragos. "So there's this large dichotomy between what policymakers have hoped would happen through all of the various costly incentives and what is actually happening on the ground."

Part of the push to develop new technology in the nuclear industry is an effort to decarbonize power grids. Nuclear power is seen as a key source of clean energy in this transition.

The company NuScale Power is developing its small modular reactor technology at Idaho National Laboratory and has received federal investments. The Department of Energy did not respond to a request for comment before the deadline for this story.

The Idaho National Laboratory will be the site of the Utah Associated Municipal Power Systems's Carbon Free Power Project. Current plans for the project consist of 12 small reactors that supply power to cities in six states, including Idaho.

However, Maragos noted that appetite could be waning for this project, which is targeting 2029 to go operational. Salmon River Electric in Challis has pulled out of the project and Idaho Falls has halved its commitment.

"We already see a number of towns that are supposedly going to be the ones benefiting from this brand-spanking new type of nuclear reactor shying away from the project," said Maragos. "And the reason is simple. It's going to cost a lot, probably more than we're expecting now, and ratepayers are going to be on the hook."

Maragos said the rate of federal subsidies for nuclear is unsustainable, noting money to transition the country to a cleaner economy would be better spent on technology such as solar and wind, which are cheaper to deploy.

"Nuclear power may provide some benefits in a world where we're trying to limit emissions from our power sector," said Maragos. "But those benefits are not worth the tremendous cost and risk that policymakers are asking ratepayers and taxpayers to bear."

Environmental groups are voicing concerns about plans to build the nation's first small modular reactors at the Palisades Nuclear Plant in Covert Township, Michigan.

Holtec International said it aims to revive Palisades later this year, after it was decommissioned in 2022, and in five years, install the nation's first small modular reactors. Critics warned the reactors would still produce radioactive waste without long-term disposal solutions and pose accident risks like leaks and meltdowns.

Michael Keegan, research director for the grassroots group Don't Waste Michigan, said about 80 companies are competing to market their small modular reactors, which he argued are not really small nuclear reactors.

"A colleague of mine refers to them as 'small mythical reactors' because they don't exist," Keegan asserted. "They're 'PowerPoint' reactors. It's hyperbole, and they're all chasing Department of Energy money. We're talking billions of dollars."

A $1.5 billion U.S. Department of Energy loan backs the Palisades plant revival, as part of a push to extend the life of aging nuclear reactors to produce low-carbon energy.

The Nuclear Regulatory Commission has formed a panel to oversee the Palisades' restart for safety compliance. The plant is expected to eventually generate 800 megawatts and power 800,000 homes. Keegan noted anyone who wants to challenge the project must do so under the Administrative Procedures Act.

"We have to go through their administrative law judges," Keegan explained. "We have to go through all those processes, be denied, make an appeal to the NRC commission, be denied, before we can go to a federal court. And we're prepared to do that."

Holtec released a statement, saying in part, its restart project includes "thorough inspections, testing, maintenance, repairs, and upgrades to prepare the plant for a return to long-term operation."


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Interest in nuclear energy as a solution to "dirty" sources of power is growing, including a proposal in the Northwest. However, some critics say it could divert attention from more practical renewable energy solutions.

Amazon has signed an agreement with X-energy to build new nuclear technology, known as small modular reactors, to meet the company's growing energy needs. The aim is to build the reactors at the Hanford nuclear site along the Columbia River.

Kelly Campbell, policy director for Columbia Riverkeeper, said companies are looking into nuclear because they want it to be a "magic bullet" for climate change.

"It's a distraction," Campbell asserted. "It's a shiny object that you can say, 'Look over here! We're going to do 'clean' nuclear power.' But it's going to take 15 years at least to build these things, and meanwhile there's still part of the problem of trying to get more energy supply for the data centers and AI needs."

While small modular reactors are seen as an innovative way to provide nuclear energy without having to build large power plants, none has been built in the United States or approved by the federal government. An Oregon-based company called NuScale, at the forefront of small modular reactor design, had its only customer back out last year because of repeated delays in the project.

Campbell pointed out the location of the project Amazon and X-energy are moving forward with is also a concern.

"It's right on the Columbia River and if there's an emergency, if there's an accident with any of these nuclear facilities at Hanford, it would affect all of them," Campbell emphasized. "You may end up in a situation where you're not able to get in and do the things that you need to do in order to protect people from radiation."

After Amazon and Google expressed interest in nuclear to fuel their growing energy needs, the U.S. Department of Energy announced it would invest $900 million in this technology.

Campbell is convinced the money would be better spent on proven technology, like wind and solar.

"When we start spending it on nuclear, which people have called 'the most expensive way to boil water,' then that's an opportunity cost that we're losing, in terms of spending that on things we know will work and are safer, quicker to build and cheaper," Campbell contended.

A 2,000-mile bus trip has not deterred representatives from Southwest tribes from traveling to Washington, D.C., this week to support expansion of the Radiation Exposure Compensation Act.

The law provides health screenings and financial aid for people sickened by testing of nuclear weapons in the 1940s.

Tina Cordova, co-founder of the Tularosa Basin Downwinders Consortium, is traveling with members from the Laguna and Acoma Pueblos and the Navajo Nation. She noted expansion of the law is supported in the Senate but Rep. Mike Johnson, R-La., the Speaker of the House, has blocked a House vote.

"It's very disappointing that somebody who has so much power can simply say something like, 'It's going to cost too much,' and that works," Cordova asserted. "It's obscene."

Expansion of the bill would, for the first time, benefit thousands of New Mexicans from the area surrounding the Trinity Test Site. It would also include people from Idaho, Nevada, Montana, Missouri, Colorado and Guam.

Cordova's father died of cancer believed related to radiation exposure. After surviving cancer herself, she has made expansion of the Radiation Exposure Compensation Act her life's mission by testifying before Congress and leading numerous meetings across the state.

"You're always amongst nothing but widows -- widows raising children and grandchildren -- the men have died," Cordova pointed out. "I mean, when you bury enough people that you love, you realize that there's not a whole lot else they can take from you."

She believes expansion of the law would provide justice for people irreparably harmed by nuclear radiation.

"Our children now have the genetics and our children are now being diagnosed all the time," Cordova observed. "This isn't going to go away for us anytime soon. And so, we have everything to gain and nothing to lose from fighting this fight."


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