Newhouse wins nuclear fight in Trump’s ‘big bill.’ What it means for Tri-Cities, NW

Republican Rep. Dan Newhouse’s advocacy for nuclear energy is being credited with securing a key win for the Tri-Cities and the nation’s nuclear technology future.

The initial version of the reconciliation bill, called the “Big, Beautiful Bill,” would have stripped tax credits from current and new nuclear projects, along with tax credits for new wind and solar energy projects.

But both the House and the Senate approved a version that continued at least the nuclear tax credits, with President Trump signing it into law July 4.

“Congressman Newhouse really led the effort to save the nuclear energy tax credit, and he deserves enormous credit for fighting for the nuclear energy sector on this,” said Sean O’Brien, executive director of the Energy Forward Alliance formed by the Tri-City Development Council.

The Washington 4th District congressman negotiated crucial wins with House leadership, said Bob Schuetz, Energy Northwest chief executive officer, in a statement.

“He understands the central role that nuclear power will play in the Tri-Cities, providing reliable power throughout the Pacific Northwest and establishing America’s energy dominance,” Schuetz said.

Newhouse said following the passage of the bill that securing investment in the nation’s current and future nuclear energy future was “vital to the Tri-Cities and the surrounding region.” Tri-Cities nuclear

The Tri-Cities area is home to the Northwest’s only commercial nuclear power reactor, Energy Northwest’s Columbia Generating Station.

And Energy Northwest, with the help of Amazon, also is developing an X-energy small advanced nuclear reactor.

An advanced nuclear energy reactor will not only create direct jobs, but it also will provide baseload power that the Tri-Cities can use to support new industrial development, said David Reeploeg, a TRIDEC vice president.X-energy control room for its proposed new nuclear small modular reactor system. Courtesy Amazon

One of the important factors companies are considering when they are deciding where to locate is having adequate power available, he said.

The first phase of the X-energy project in the Tri-Cities area that is being done in conjunction with Amazon is planned to generate 320 megawatts of energy capacity.

But the modular reactor system could be built out to a total generating capacity of up to 960 megawatts. By comparison, the Columbia Generating Station has a total generating capacity of up to 1,207 megawatts, or enough electricity to power about 1 million homes.

The Pacific Northwest Utilities Conference Committee forecasts that the Pacific Northwest region will need enough additional electricity to power the equivalent of seven Seattle-sized cities in the next decade.

The increase is attributed to factors such as data center development, high-tech manufacturing growth and the continued trend toward electrification, the committee said in May 2024.

“We need new nuclear and we certainly need to keep the nuclear we have,” O’Brien said.

With the possibility of advanced nuclear expanding across the country, as the tax credits remain in place, there also could be an opportunity to be part of the nuclear supply chain, Reeploeg said.

That includes Framatome’s plant in Richland producing advanced nuclear fuel and also opportunities for companies to do assembly or manufacturing for the nuclear sector, he said.

Among Newhouse’s efforts to save nuclear tax credits was getting 26 Republicans to sign onto a letter to the chairman of the House Committee on Ways and Means, Jason Smith.

The letter said that maintaining federal support of new and existing nuclear reactors is vital to “unleashing American energy dominance,” a key goal of the Trump administration, and for lower energy costs for families and businesses.

Newhouse called nuclear energy an issue of national security.Columbia Generating Station, owned and operated by Energy Northwest, is a boiling water nuclear power reactor located about 10 miles north of Richland, Washington. Energy Northwest file

The 94 nuclear power reactors in the United States, paired with new advanced reactors, will solidify U.S. leadership in nuclear diplomacy, reduce global reliance on adversaries like Russia and China, and create export opportunities that strengthen the economy of the U.S. and its allies, his letter said.

“American nuclear technology is the safest and most advanced in the world,” it said. “But we cannot lead globally if we do not invest domestically.”

Richland city leaders also praised Newhouse’s work to save the nuclear tax credit, including ensuring “transferability.”

“Congressman Newhouse’s leadership on this issue could not be more timely or more important,” said Jon Amundson, Richland’s city manager. Nuclear tax credit need

Unlike other electricity generation technologies, nuclear facilities face barriers to using traditional tax equity structures.

Ownership of a nuclear plant requires a a license from the Nuclear Regulatory Commission and that license cannot be transferred without NRC approval.

Any prospective owner, including tax equity investors, must obtain an NRC license, a complex process that can take years to complete, Newhouse explained in the letter to Smith.

Tax equity financing is largely unworkable for nuclear projects because of the licensing constraints and regulatory burdens of owning a nuclear facility, the letter said.

“These barriers are addressed through transferability, which has proven essential for monetizing electricity tax credits in the nuclear sector,” the letter said.

Preserving transferability will lead to both reduced costs for customers and maximized investment in nuclear energy, the letter said.

Tax credits for wind and solar projects did not win a similar reprieve in the reconciliation bill signed into law. Those projects that start operating after 2027 will no longer be eligible for production and investment tax credits.