The Department of Energy (DOE) announced yesterday a second funding opportunity for its Small Modular Reactor (SMR) Program. The new funding opportunity aims to provide up to $226 million in taxpayer subsidies to the nuclear power industry; as part of the $452 million committed in March 2012. Funding for the new round of applications is subject to Congressional appropriations. Similar to the first funding opportunity announcement, taxpayers are being asked to provide up to 50% of project costs to commercialize SMR designs.
The second funding opportunity announcement states DOE intends to support the commercialization of one additional SMR design by 2025 however potentially as late as 2027—three to five years after the first round proposes to reach commercial operations. Moreover, DOE states only new applicants will be accepted. According to DOE, “Prime/lead applicants currently in negotiations for or in receipt of government financial assistance for similar SMR design/licensing FOAs are not eligible.” Potential applicants must submit a Letter of Intent to DOE before April 5, 2013 and full applications before July 1, 2013. No date was provided for when applicant(s) will be selected.
The Department of Energy has already provided nearly $100 million for these so-called mini reactors while their commercial viability remains in question. If DOE believes there is a ‘need and market’ for SMRs, the mature and profitable nuclear industry should bear the full risk and cost of making SMRs a reality. In these tight budget times, federal taxpayers cannot afford to provide any additional subsidies to the nuclear power industry.
For more information, please contact Autumn Hanna at (202) 546-8500 x112 or autumn [at] taxpayer.net.
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