New Jersey lifts de-facto moratorium on new nuclear facilities in effort to tackle affordability crisis

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New Jersey Gov. Mikie Sherrill signed legislation Wednesday lifting the state’s 40-year de-facto moratorium on new nuclear power plants, citing the shrinking gap between supply and demand that has led to skyrocketing electricity bills for consumers. The legislation passed in the General Assembly by a large majority on March 23, and amended the Coastal Area Facility and Review Act. The act had prohibited the state’s Department of Environmental Protection from issuing new permits for nuclear power plants unless the federal government established a permanent nuclear radioactive waste disposal site.

“For costs to come down, we need more energy supply,” Sherrill said in a statement. “New Jersey is well-positioned to be a leader in next-generation nuclear energy to help bring that supply, and we are open for business.”

Sherrill said more power plants are needed to bring electricity prices down. She called the former permit requirements “an outdated standard that cannot be met.”

In a release, the governor’s office said permits for new nuclear reactors will be “based on safe, [Nuclear Regulatory Commission] compliant waste storage” that has a “100 percent effective safety record in the U.S.”

“I … am excited that we are moving closer to building more nuclear generation in our State because it has proven to be a stable and reliable carbon neutral energy source that will help us bridge the gap between what we generate and use,” said Assemblyman Wayne DeAngelo, D-Hamilton, one of the bill’s sponsors, in a statement.

Congress had designated a permanent nuclear waste storage site at Yucca Mountain in 1987. But the project, located about 100 miles from Las Vegas in the Mojave Desert, ran into intense political opposition. Currently, radioactive waste from commercial reactors is stored on-site at more than 70 nuclear facilities across the country. About a quarter of the sites no longer operate. The spent fuel rods are initially stored in giant pools of water to cool them down for five to 10 years. They are then transferred to concrete or steel dry-storage casks.

Sherrill signed the bill at the Salem Nuclear Power Plant in Lower Alloways Creek Township, accompanied by the bill’s sponsors, PSEG executives and union leaders.

Nuclear plants are expensive to build and have in the past saddled ratepayers with high bills. But industry proponents say new smaller, modular reactors could be more affordable. Research shows they could generate more waste than conventional reactors.

Exelon’s Oyster Creek nuclear power plant in Lacey Township shut down in 2018, leaving behind 1.7 million pounds of waste. New Jersey’s two remaining nuclear plants — Salem and Hope Creek, both in Lower Alloways Creek, provide 40% of the state’s electricity and 80% of its carbon-free energy, according to the state. The Salem plant opened in 1977, while the Hope Creek facility has been operating since 1986.

The governor also announced the creation of a 14-member task force established as part of an executive order she signed in January. The group includes representatives from government, industry and labor who will focus on “financing, supply chains and technology development, workforce growth and training, regulatory and permitting framework, and public trust and confidence.”