The increased funding to the Office of Nuclear Energy–a 23 percent increase from the prior Fiscal Year–demonstrates support to deploying advanced reactors. It is part of a proposed $1.9 billion increase designated for the DOE generally. Specifically, $1 billion is dedicated to nuclear energy research, development, and demonstration programs, with $245 million to support the demonstration of two advanced reactor technologies within the next six years. The proposed budget also includes $11 million to launch the consent-based siting process to support consolidated interim storage for the nation’s used nuclear fuel and high-level radioactive waste.
Additionally, the FY22 budget seeks to grow technology-neutral approaches to clean energy innovation. For instance, and possibly most noteworthy, the budget allocates $400 million for a new entity within DOE, named the Office of Clean Energy Demonstrations, to bring innovative technologies–without a clear technology preference–to market through multiyear projects and private-sector partnerships. In addition, the President earmarked $200 million for the new Advanced Research Projects Agency-Climate (ARPA-C) to further the goal of producing 100 percent carbon-free electricity by 2035, and set $500 million, a 17 percent increase from the prior Fiscal Year, for Advanced Research Projects Agency-Energy (ARPA-E) to help develop and commercialize clean energy technologies. ARPA-E aims to advance carbon-neutral fuels such as hydrogen, grid modernization technologies, and carbon management, while ARPA-C will be critical in advancing climate technology solutions for resilience and emissions mitigation. This type of unified government R&D approach will integrate program development across the spectrum of DOE’s science and applied energy offices.
The budget and related Treasury Green Book on revenue proposals also take a deep dive into the use of tax credits to help spur clean energy innovation, including the creation of technology-neutral clean energy generation tax credits, tax credits for operating nuclear power plants that are under financial distress, and reactivation of a tax credit for clean energy manufacturing (although that credit may have to be further modified to include nuclear). We are following tax credit issues closely, as they have a significant impact on not just technology advancement for advanced nuclear or fusion technologies, but eventual customer adoption of those technologies and first-of-a-kind demonstration facilities.
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Authored by Amy Roma, Sachin Desai, and Stephanie Fishman.