Clean Energy Development: A Modern Approach to Government Involvement Erik B. Olson August 2nd, 2018

Comparisons Beijing, November 2015 Logan, Utah 2013

Electricity Environmental Protection Agency

All electricity is not created equal.

Low-Carbon electricity Nuclear energy is the largest source of low-carbon electricity. How is this chart changing with time? Nuclear Energy Institute

The nuclear Dilemma Nuclear Energy is rapidly losing market share Market Trends Nuclear Energy is rapidly losing market share Changes in market structures Falling prices of natural gas and renewables Cost overruns Little construction since 1980s Not for political reasons

The nuclear Dilemma Perspective Low emission electricity gains in solar and wind are being erased by losses in nuclear Represents over $9B in solar specific government assistance since 2010

The nuclear Dilemma Shutdown in 2014 (mainly for market reasons) Vermont Yankee Nuclear Plant Shutdown in 2014 (mainly for market reasons) 70% of Vermont’s power, 4% of New England’s Despite aggressive emissions reduction steps, CO2 increased in the state and region

The nuclear Dilemma Electricity demand is expected to grow by 12.5% Projections Electricity demand is expected to grow by 12.5% Intermittency = Natural gas

Funding Success, Policy Failure What is our goal?

The issue Key Points Nuclear is the largest source of low-carbon electricity, but is in rapid decline due to market forces Federal incentives have succeeded in growing renewables, but have undermined the policy goal of decarbonizing There is little funding to encourage nuclear deployment in the current electricity market There are clear steps the Federal government can take to preserve and grow the nuclear sector

RECOMMENDATION 1: Allow wind Production Tax Credit (PTC) and solar Investment Tax Credit (ITC) to expire without extensions

RECOMMENDATION 2: Reallocate and generalize tax credits for low-carbon electricity generators

RECOMMENDATION 3: Reform the Public Utilities Regulatory Policy Act (PURPA) purchase mandates and qualifying facilities guidelines

RECOMMENDATION 4: Conduct analysis on government incentives to spur decarbonization

"We're not in a clean energy revolution; we're in a clean energy crisis," - Michael Shellenberger, June 2016 Erik B. Olson erikbolson@aggiemail.usu.edu August 2nd, 2018