April 18, 2024
Nuclear Energy in a Climate Change Context: Current
Appropriations for Nuclear Energy Development
The potential role of nuclear energy in mitigating climate
electrification and alternative energy sources has been seen
change has been a significant element of recent
as a mechanism for GHG emissions reduction.
congressional discussions about energy and environmental
policy. For example, Senate Environment and Public Works
Rising U.S. electricity demand could pose additional
Committee Chairman Tom Carper at a committee hearing
challenges. The electricity sector has raised the concern that
in April 2023 stated, “As many of you know, I believe that
projected increases in electricity demand, including those of
safe nuclear power plays an essential role in our efforts to
data centers, and the potential effects of a transition to
address the greatest challenge of our time, the climate
lower carbon electricity generation could affect electric grid
crisis.” Other Members of Congress have expressed
reliability.
opposition to nuclear power over concerns that include
safety, cost, and the risk of storage of spent nuclear fuel.
Potential Role of Nuclear Power
The Long-Term Strategy includes several technological
The Consolidated Appropriations Act, 2024 (P.L. 118-42)
transformations considered key to achieving the strategy’s
includes more than $5 billion in new funding and transfers
climate goals. These include decarbonizing electricity
for advanced reactors and fuel, as well as support for
generation, fuel switching in other sectors to electricity and
existing civilian nuclear power. Nuclear energy is also
carbon-free fuels such as hydrogen, cutting energy waste,
included as a consideration in the Biden Administration’s
reducing methane and other non-carbon dioxide (CO2)
Long-Term Strategy for the United States on climate
emissions, and scaling up CO2 removal.
change.
Supporters of nuclear energy contend that nuclear energy
U.S. Climate Strategy
could contribute to bringing the United States onto a
Human-caused emissions increase the levels of greenhouse
decarbonization trajectory consistent with its 2050 net-zero
gases (GHGs) in the atmosphere, causing global average
GHG emissions goal. Proponents say this could be
temperature increases, with a corresponding increase in the
accomplished, for example, by increasing nuclear-generated
net negative effects of climate change. Average global
electricity and using nuclear reactor heat for industrial
temperatures have increased by approximately 1.0 C since
processes, such as the production of hydrogen, replacing
the preindustrial period, with corresponding identified
equivalent energy from fossil fuels.
climate-driven impacts.
Increasing the role of nuclear power would likely involve
A scientific consensus exists that reducing net global GHG
building new nuclear generating capacity both to replace
emissions to zero (net zero) by 2050 is consistent with a
existing, aging nuclear reactors and to create a net increase
greater than 50% chance of limiting global temperature
in nuclear generating capacity. Some nuclear power
increases to 1.5 C. The Long-Term Strategy includes a
advocates state that such efforts would be facilitated by
goal of reducing U.S. GHG emissions to net zero by 2050,
as a contribution to limiting climate-driven impacts.
• using standardized reactor designs, such as small
modular reactors (SMRs), that could be built in
As a party to the United Nations Framework Convention on
series to achieve construction economies of scale;
Climate Change (UNFCCC), the United States submitted a
Nationally Determined Contribution (NDC) document with
• increasing the capability and capacity of the
the goal of reducing U.S. GHG emissions by 50%-52% by
nuclear workforce and supply chains;
2030 compared with 2005. All pathways described in the
Long-Term Strategy that achieve net-zero U.S. GHG
• developing advanced reactors that could be
emissions by 2050 incorporate achieving the 2030 U.S.
smaller, safer, and less expensive than existing
NDC GHG emissions reduction goal.
nuclear technology; and
Many factors contribute to the U.S. emission of GHGs. The
• using nuclear fuel developed for enhanced safety
pace of U.S. GHG emissions reduction has not occurred,
and requiring less frequent reactor refueling.
and is not currently projected to occur, at a rate that some
experts assess is in line with meeting these stated climate
Some environmental advocates have questioned the use of
goals. Emissions reductions in industrial processes,
nuclear energy to contribute to mitigating climate change.
transportation, and other sectors have proven challenging.
Such groups raise concerns about nuclear energy that
Replacement of certain fossil fuels with low-carbon
include cost, timing, safety, whether nuclear power’s life-
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link to page 2 Nuclear Energy in a Climate Change Context: Current Appropriations for Nuclear Energy Development
cycle carbon emissions are as low as those from renewable
nuclear energy account increased by $212 million (14%)
energy technologies, and nuclear weapons proliferation.
over the FY2023 amount.
The construction of nuclear power plants often has been
Table 1. FY2024 Nuclear Energy Appropriations
subject to large cost overruns and schedule delays,
Funding Source
$ (in millions)
sometimes leading to the abandonment of a project.
Recently completed (and proposed) U.S. nuclear projects
P.L. 118-42 Nuclear Energy Account
1,685
have relied at least partly on tax credits, government grants,
P.L. 118-42 Transfer to SMRs
950
and other assistance to be economically viable. Concerns
have been raised about the cost-effective construction of
P.L. 118-42 Transfer to Nuclear Fuel
2,720
nuclear energy projects and whether such financing might
Programs
be more effective in support of other efforts to reduce GHG
emissions.
P.L. 117-58 IIJA Advanced Reactor
600
Demonstration Program
Proponents of funding for nuclear energy point to the
P.L. 117-69 IRA Advanced Nuclear Fuel
700
operating characteristics of nuclear power plants that can
Program for FY2022-FY2026
contribute to electric reliability, including their ability to
operate constantly and support voltage and frequency levels
Sources: Consolidated Appropriations Act, 2024 (P.L. 118-42); IRA
on the grid. Some lower cost non-emitting resources, such
(P.L. 117-69); and IIJA (P.L. 117-58).
as wind and solar electricity generation, do not inherently
Notes: Nuclear fuel transfers subject to implementation of nuclear
operate this way, potentially limiting their ability to supply
fuel import sanctions on Russia. SMR = small modular reactor.
large shares of electricity generation without the use of
additional technologies such as large-scale energy storage.
Congress has provided additional funding for DOE nuclear
energy activities through supplemental appropriations bills
The time required to site, build, permit, test, and
and advance appropriations in the Infrastructure Investment
operationalize nuclear plants—more than 14 years by one
and Jobs Act (IIJA, P.L. 117-58). Through IIJA, Congress
environmental group’s estimate—may be too long for
appropriated $2.477 billion for the DOE Advanced Reactor
nuclear power to make a meaningful contribution to climate
Demonstration Program from FY2022 to FY2026. Under
change mitigation. Proposed changes, such as standardized
that program, DOE is paying up to 50% of the costs of two
designs, aim to shorten these timelines.
advanced reactor demonstrations, one each in Wyoming
and Texas. In addition, through IIJA, Congress appropriated
In the wake of incidents at nuclear power plants at Three
$6 billion over the same period for Civil Nuclear Credits to
Mile Island, Chernobyl, and Fukushima, some
support existing nuclear power plants at risk of closing for
environmental groups have raised concerns about the safety
financial reasons. Most of the Civil Nuclear Credit funding
of nuclear energy and its expansion. Concerns have also
remains available because of rising wholesale electricity
been raised about the safety of the long-term storage of the
prices, state support, and federal tax credits provided to
spent nuclear fuel produced by nuclear reactors.
nuclear plants in the Inflation Reduction Act (IRA, P.L.
117-169).
Life-cycle analysis has been used to compare GHG
emissions from nuclear energy production with emissions
The FY2024 Consolidated Appropriations Act transferred
from renewable energy sources. The life-cycle emissions
$950 million from IIJA’s Civil Nuclear Credit program to
from nuclear energy production include mining, milling,
support SMR deployment and university reactor safety
and transporting nuclear fuel, as well as the emissions
training. The FY2024 Act also transferred $2.72 billion
associated with waste management and the construction of
from the Civil Nuclear Credit program to a DOE program
nuclear facilities. A National Renewable Energy Laboratory
to support domestic production of enriched uranium to fuel
study found that life-cycle GHG estimates for nuclear
existing and advanced reactors, contingent on sanctions on
power were similar to those for most renewable energy
Russian nuclear fuel imports. That funding is in addition to
sources and a fraction of those for fossil fuels.
$700 million for nuclear reactor fuel provided in the IRA
for FY2022-FY2026.
Nuclear Energy Current Appropriations
The U.S. Department of Energy (DOE) is the primary
DOE nuclear energy funding supports the development of
agency that carries out federal civilian nuclear energy
some of the components, particularly advanced reactor
programs (see Table 1). Major nuclear energy programs
technology and fuel, that might be used to increase nuclear
include advanced reactor research, development, and
power capacity above current levels. Successful
demonstration; nuclear production of hydrogen; advanced
demonstration projects could contribute to the U.S.
nuclear fuel availability; and research on the operation and
achievement of net-zero GHG emissions by 2050, although
safety of existing reactors.
nuclear energy expansion also raises other policy concerns
as noted above.
Funding for those activities is included in DOE’s Nuclear
Energy appropriations account, which received $1.685
Jonathan D. Haskett, Analyst in Environmental Policy
billion in the FY2024 Consolidated Appropriations Act,
Mark Holt, Specialist in Energy Policy
which also included a major transfer of previously
appropriated nuclear funding as described below. The
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Nuclear Energy in a Climate Change Context: Current Appropriations for Nuclear Energy Development


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