U.S. Secretary of Energy Jennifer Granholm and Tennessee Valley Authority CEO Jeff Lyash joined forces this week at the Clinch River Nuclear Site to praise the site’s potential to answer a fundamental question of energy in the 21st century: how to make nuclear power plants smaller and more affordable. The Secretary’s visit marked the potential construction of small modular reactors at TVA’s Clinch River Nuclear Site near Oak Ridge as a project of national and global significance. Read more at Knoxville News Sentinel

U.S. Secretary of Energy Jennifer Granholm and Tennessee Valley Authority CEO Jeff Lyash joined forces Dec. 5 at the Clinch River Nuclear Site to praise the site’s potential to answer a fundamental question of energy in the 21st century: how to make nuclear power plants smaller and more affordable.

Her visit marked the potential construction of small modular reactors at TVA’s Clinch River Nuclear Site as a project of national and global significance. Small modular reactors are smaller and produce less power than traditional nuclear plants, but are expected to cost far less and could be built in clusters to match the output of shuttered coal-fired plants.

In the future, the small modular reactors could bring carbon-free power to hospitals and factories, cropping up across the U.S. like coal plants did a century ago.

The Biden administration’s massive investments in clean energy have placed Granholm, a former two-term governor of Michigan, among the most powerful secretaries of energy.

The Department of Energy owns much of Oak Ridge, including Oak Ridge National Laboratory and the Y-12 National Security Complex, and frequently partners with TVA.

Granholm said TVA and its partners in Oak Ridge and Knoxville are leading the way on new nuclear technology that could help the administration reach its ambitious goals of a carbon-free national electric grid by 2035 and a net-zero carbon emissions economy by 2050.

“Oak Ridge has such an important role to play in our national security and in our clean energy future,” Granholm told Knox News. “That combination makes it irresistible.”

No small modular reactors have been built in the U.S., though several are under development. In 2019, the Clinch River Nuclear Site was the first small modular reactor project to get an early site permit from the Nuclear Regulatory Commission, giving TVA the all-clear to move towards design and budgeting.

When will TVA small modular reactors be built?

The biggest question for the agency now is how to pay for the small modular reactors. Being the first to deploy the technology is always costlier, said Lyash, the TVA CEO. He expects the money to come in part from electricity sales and from outside investment, though a detailed budget is years away.

By 2026 or 2027, the agency will make a final decision on whether to build a small modular reactor at the Clinch River site, pending final design and budget models. TVA would then apply for a construction permit and operating license from the Nuclear Regulatory Commission.

If the first unit successfully comes online in the early 2030s, TVA plans to build several others at the site to demonstrate the technology can be deployed throughout the country.

In March, TVA announced it would join partners to invest $400 million to develop GE Hitachi’s 300 megawatt small modular reactor technology, which the agency plans to license and build at the Clinch River Nuclear Site.

Ontario Power in Canada and Synthos Green Energy in Poland are the other two partners. Granholm called the four partners, two in the U.S. and two in allied nations, a “magic elixir” for making small modular reactors a reality in the U.S.

The U.S. joined more than 20 countries in a declaration committing to triple their nuclear fleets by 2050 at the COP28 climate summit in Dubai on Dec. 2. That requires the U.S. to go from 100 gigawatts to 300 gigawatts of nuclear power, something Granholm said would be impossible without small modular reactors.

A gigawatt is enough to power around 750,000 homes. Hoover Dam has a power output of around two gigawatts. By 2050, the U.S. must create enough new nuclear power generation to equal 100 Hoover Dams, Granholm said.

The global clean energy technology market is expected to reach $23 trillion by 2030 and the U.S. is in a position to export that technology stamped with a “Made in America” label, Granholm said.

For her, the jobs that small modular reactors and other clean energy technologies could bring is personal. As governor of Michigan during the Great Recession, she saw thousands of auto manufacturing jobs leave her state.

“We used to stand by the side of the road and watch all these jobs leave and I was governor when I saw these factories close,” Granholm told Knox News. “We allowed China to take us to the cleaners. And we’re not doing that anymore. We’re standing up and we’re saying, no, we’re going to get those jobs and those businesses in the United States.”

A rendering shows TVA’s small modular reactor at the Clinch River Site,  about the size  of a football field, could

look like once completed.  Courtesy of Tennessee Valley Authority.

Clinch River Site could bring clean energy future

The Clinch River Nuclear Site, located on a bend of the river a few miles east of the Kingston Fossil Plant, doesn’t look like much right now. It’s a field with a few trailers as workspaces and picket fences to mark the corners of the future small modular reactor units.

It was once meant to house a breeder reactor, which would create more nuclear fuel than it used, though President Jimmy Carter opposed the expensive project and Congress pulled the plug on funding in the 1980s.

The 2020s are a different story, and small modular reactors are a different kind of technology.

President Biden authorized $369 billion of investment in clean energy projects, from EV battery manufacturing to advanced nuclear energy, in the Inflation Reduction Act, the largest single investment in clean energy in U.S. history. Some $36 billion of that money went to Department of Energy projects.

Early last year, the department created a structure to implement $62 billion for clean energy projects from the Bipartisan Infrastructure Law passed in 2021. The department has a rigorous auditing process to ensure money is used correctly by recipients, Granholm said. Funding is given in increments contingent on projects reaching critical milestones.

Even as it expands its nuclear technology and retires coal plants, Lyash said he expects nuclear will occupy the same proportion of TVA’s energy mix as it does now. In fiscal year 2023, nuclear generation made up 42% of TVA’s total power generation.

For the first time, all seven units at three plants – Browns Ferry, Sequoyah and Watts Bar – were recognized for their excellence by the Institute of Nuclear Power Operations.

Lyash said the mission of TVA, the nation’s largest public power provider, is to help the U.S. maintain its position as the world’s largest economy through 2050, a goal that will require reliable, affordable and safe nuclear technology.

Daniel Dassow is a growth and development reporter focused on technology and energy. Phone 423-637-0878. Email daniel.dassow@knoxnews.com.

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ATVG Announces 2024 Meeting Dates

We have finalized our meeting dates and locations for 2024 and want you to make plans early to join us.

Our 2024 meeting dates are:

• February 6 at the Embassy Suites in Murfreesboro, TN  (1-800-Embassy)
• June 19 at the Marriott Shoals in Florence, AL (256-246-3600)
• October 23 at the Courtyard Marriott in Gatlinburg, TN  (865-436-2008)

Room blocks are in place at all hotels with rooms available for the previous night for early arrivals.  Thank you for your support of ATVG!

Jeff Lyash is president and CEO of the Tennessee Valley Authority. He wrote this in collaboration with the Tennessee Business Forum, which provides Ten­nessee-connected business leaders with the opportunity to engage with other ex­ecutives from various industries to dis­cuss a broad range of national legisla­tive and regulatory issues. Learn more at Tennesseebusinessforum.com.  See the article here.

ATVG Support of SMRs

By: Mike Arms, ATVG Executive Director

        Our ATVG membership heard a detailed presentation on Winter Storm Elliott from TVA at our January meeting. The presentation provided an hour-by-hour break-down of the events on December 23^rd and 24^th. The timeline included the loss of Cumberland Unit 1followed a few hours later by the loss of Cumberland Unit 2. With the entire Tennessee River Valley approaching 5 degrees Fahrenheit from a frigid winter storm front that produced a 40 degree temperature drop in a few short hours, the rolling black-outs were mandated to protect the TVA grid. Throughout this weather crisis TVA’s nuclear fleet performed superbly. This nuclear performance begs the question, “Will Small Modular Reactors (SMRs) be the solution to a similar future crisis?”

        ATVG is on record with two resolutions of support for nuclear energy and for SMR’s. Now the U.S. Nuclear Regulatory Commission (NRC) has certified the design for what will be the first SMR in the nation. The new design is inherently safer than the prior large nuclear reactors.

        The rule that certifies this design is now published in the Federal Register. This certification means companies seeking to build and operate a nuclear power plant can pick the design for a 50-mega-watt, advanced light-water SMR by Oregon-based NuScale Power and apply to the NRC for a license.

        The NRC certification is the final determination that the design is acceptable for use, so this design cannot be legally challenged during the licensing process when someone applies to build and operate a nuclear power plant.

        With an approved design in place SMRs are no longer an abstract concept but a new clean, green power source. ATVG has always supported nuclear power as the logical answer for utilities’ transition from fossil fuels to reduce greenhouse emissions. Our organization remains supportive of the Oak Ridge “Clinch Reactor Site” as the first SMR location in the Tennessee Valley. ATVG is also prepared to help communities in the Valley consider SMR locations when appropriate. SMRs are the centerpiece of the next generation of nuclear reactors and will be a source of safe, reliable, and affordable green energy.

During the meeting of the ATVG Board on April 26, 2022 at Oak Grove, KY, ATVG Treasurer Brent Greer presented the annual audit of the previous budget year.  Mr. Greer stated, “I am pleased there were no findings in the audit for our last budget year completed June 30, 2021.”  The audit was completed by Blackburn, Childers, and Steagall, PLC of Johnson City, TN.  The audit may be viewed here.

The ATVG Spring 2022 Newsletter has been published and is ready for ATVG membership to enjoy and stay up to date on latest of TVA happenings!  View newsletter here!

Mike Arms, ATVG Executive Director is asking for ATVG membership to update their contact information.  This can be easily done through an online form for ATVG members. Members can click this link: https://nwtn.readyop.com/fs/4c9o/9a01 with their computer or mobile device and quickly update their contact information.  Director Arms states, “We are looking to update our database with our members most current information for distribution of our quarterly ATVG Newsletter. We want our membership to be as informed as possible on the issues of TVA and TVA local governments.”

TVA and a New Administration

By Mike Arms, ATVG Executive Director

While many of us were busy with last-minute shopping the week before Christmas, Senator Lamar Alexander was diligently working to complete some critical legislative tasks.  Two of the tasks were ensuring the full Senate confirmations of Dr. Beth Harwell on December 19 and Dr. Brian Noland on December 20 to serve on the TVA Board of Directors.  Speaking for the Association of Tennessee Valley Governments (ATVG) this action was significant for local governments in the 200 counties in TVA’s service region for several reasons.  

A primary reason was that for several months TVA’s nine-member Board of Directors consisted of only five members which is the minimum quorum required to conduct business.  Local governments are one of TVA’s largest customers (consumers of electric power).  Think about the electricity consumed to heat, cool and operate courthouses, city and town halls, justice centers and jails, senior and community centers, parks and recreation centers and, most of all, schools for the 1 million public school students in local systems in the 200 counties in TVA’s seven-state service region.  Stability of the TVA Board is important to local governments and all other TVA stakeholders.  If for any reason the TVA Board membership falls below the five-person quorum it would not be able to make new policy decisions including major financial decisions.  While the agency could continue to operate and produce electricity, its policy actions would be problematic and could always be challenged.  Having a full Board provides more stability as well as representation from multiple states.  

Another reason that local governments are positive about these two new members is that both bring new skill sets to the Board.  Beth Harwell served three decades in the Tennessee legislature and held various leadership positions.  She brings to the TVA Board unique insights into the needs and challenges of local governments.  Brian Noland brings broad experience in the education sector which includes his current role as President of East Tennessee State University.  He has a thorough understanding of the Tennessee Valley’s challenges in workforce development in all areas from engineers and computers scientists to welders and electricians.  He will be an asset in TVA’s economic development mission.  Local government leaders realize the importance of a well-prepared workforce for their local and regional economies.  

TVA now has seven members serving on its Board and two vacancies.  Two of President Trump’s nominations, Charles Cook of Mississippi and Rick Roden of Alabama, did not complete the confirmation process.  These two nominees have strong private sector business experience and economic development experience respectively.  The Senate clock simply ran out before their confirmation hearings could be scheduled and now President Biden will be responsible for these two nominations.  Looking back, the Christmas week confirmations of Harwell and Noland as the Senate session was ending reflect the hard work and political clout of Lamar Alexander.  

So, what happens now?  The Senators in the seven-state TVA region have a “non-binding agreement” that when a Board vacancy occurs the new Board nomination comes from the state where the departing Board member served.  This practice is not dictated by the TVA act.  In fact, up to two Board members can be nominated by the President from a state outside the seven-state TVA service region.  Local governments and probably many other TVA stakeholders would certainly question this action.  Most expect a Biden nomination from both Alabama and Mississippi after consultation with democratic elected officials from the two states.  In May of this year two additional Board terms expire.  Board Chair, John Ryder, a prominent attorney from Memphis who has served as General Counsel for the Republican National Committee and Kenneth Allen, a Kentucky native who has served as a coal company executive will be replaced by Biden nominations.  Then on May 18, 2022 A.D. Frazier a Georgian who served as an executive for the Atlanta Olympic games will see his term expire.  In only 16 months the Biden administration can nominate five new members, each with a five-year term, on the nine-person TVA Board and with the Democratic control of the Senate, confirmation of these nominees should be straightforward.  

What can TVA expect from the new administration?  Certainly, Board member diversity will be addressed.  Currently the TVA Board is composed of six white men and one white woman.  This situation will probably be remedied in the next nominations.  When A.D. Frazier’s term expires undoubtedly the two new Senators from Georgia will weigh in heavily on the replacement.  If climate change initiatives are pushed or the “green new deal” takes any legs, these new ventures can certainly impact TVA policy through a Board majority of Biden appointees.  To TVA’s credit it has made major strides in the reduction of fossil fuels in its fuel mix.  It has been steadfast in its agreement with EPA to do so.  It has made major capital commitments to modernize its nuclear fleet.  It has also proactively addressed renewable fuel sources including solar.  Some stakeholders believe TVA has not done near enough in the renewable arena.  Currently 60% of TVA’s power production is clean energy.  Hopefully, the Biden Administration’s energy initiatives will leverage the unique resources of TVA which has served as a “living laboratory” for energy innovation since its New Deal creation by FDR.  

What do local governments expect?  ATVG realizes policy changes will certainly occur.  However, our organization wants the agency to always have a focus on providing clean, reliable and affordable power while also maintaining strong partnerships with local and state governments in economic development activities.  This focus has been front and center for 87 years and hopefully will remain the agency’s top priority under any Presidential administration.

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Mike Arms is Senior Partner at Tennessee Strategies and serves as Executive Director for the Association of Tennessee Valley Governments (www.atvg.org)