• The NRC has started an environmental review for repowering the Palisades Nuclear Power Plant, which was decommissioned in 2022, with Holtec International pursuing a plan to restart power production.
• Holtec has secured significant financial support, including a $1.5 billion loan from the DOE and $150 million from the state budget, and has submitted multiple requests to the NRC to facilitate the repowering process.
• The plan has sparked a mix of concerns and support, with environmental advocates worried about safety and waste disposal, while others emphasize economic benefits and the plant’s potential contribution to Michigan’s clean energy goals.

The U.S. Nuclear Regulatory Commission has initiated an environmental review to assess the potential impacts of repowering the Palisades Nuclear Power Plant in Covert Township, West Michigan.

Holtec International, the owner of Palisades, is aggressively pursuing a plan to restart power production at the nuclear plant located on the shore of Lake Michigan, which was decommissioned on May 20, 2022. If successful, this would mark the first instance of an American nuclear plant being returned to the grid after having been shut down.

The NRC held a meeting on Thursday in Benton Harbor, where community members, environmental advocates, local officials, and others would express concerns about the safety of restarting the 53-year-old facility, while also offering support for the potential jobs and largely carbon-free power that the plant could provide.

Florida-based Holtec has secured significant financial backing for its plan to repower the Palisades plant, including a $1.5 billion loan offer from the U.S. Department of Energy and $150 million allocated in the state budget for the upcoming fiscal year.

The company has also submitted a series of requests to the NRC to facilitate the repowering process. These requests include permission to reload fuel into the reactor vessel, transfer ownership from Holtec Decommissioning International to Palisades Energy, LLC, and amend its license to enable the resumption of power production.

The requests are currently under review by the NRC and the DOE’s loan office. NRC Environmental Project Manager Laura Willingham has indicated that the environmental assessment will evaluate the potential impacts of repowering the plant on water quality, air quality, human health, radioactive waste, and other environmental aspects. This assessment aims to determine whether repowering the plant would significantly affect the environment. If a significant impact is identified, a more comprehensive review known as an environmental impact statement will be undertaken. In addition to the environmental review, safety reviews and inspections will also be conducted before any approval for restarting the plant is granted.

The NRC rejected Holtec’s request to apply a “categorical exclusion,” instead of conducting an environmental assessment, which implied that repowering the plant would have no significant environmental impact.

State and federal support Palisades restart

When Holtec purchased the Palisades plant from Entergy in 2022, its initial goal was not to resume power production. Initially, the company submitted filings to the NRC indicating plans to permanently shut down the plant and remove the reactor fuel. However, later in the year, Holtec shifted its focus towards restarting the plant by applying for a federal loan program designed to support nuclear facilities, which provide carbon-free electricity and are key to achieving state and federal climate goals. Holtec received a loan offer early this year.

The company has also garnered support from prominent Michigan lawmakers, including Governor Gretchen Whitmer, who highlighted the state’s backing for Palisades in a social media post on X on Thursday.

Commenters express concerns about Palisades plan

As part of its environmental review, the NRC is seeking feedback on the aspects to be included in the assessment. At a meeting on Thursday, NRC officials listened to comments from attendees for several hours.

Kathryn Barnes, a member of the anti-nuclear organization Don’t Waste Michigan, criticized Holtec, arguing that the company lacks the necessary experience to operate the plant, as it has never run a nuclear facility before. Additionally, she criticized the characterization of nuclear energy as “clean” because it relies on fossil fuels for mining, transportation, and refining the fuel. She also described the Palisades plant as a “ticking time bomb” due to its age and the wear and tear it has endured.

Others, such as state Rep. Joey Andrews, D-St. Joseph, highlighted the potential economic benefits of restarting Palisades, including the creation of hundreds of new jobs and the provision of reliable power as coal plants, which are highly polluting, are phased out. Andrews emphasized that Palisades is crucial for Michigan to meet its mandate for utilities to generate 100% of their electricity from “clean” energy sources, including nuclear, by 2050.

Darby Fetzer of Kalamazoo County expressed strong support for nuclear energy, acknowledging its role in reducing greenhouse gas emissions from the power sector. However, she emphasized that ensuring the plant’s safety is of utmost importance.

Tanya Cabala of Whitehall expressed “profound concern” about the proposed restart of Palisades, citing the lack of a federal plan for disposing of nuclear waste as a significant issue.

This month, the commission also sent letters to over a dozen federal, state, and local government officials, as well as to environmental, health, and economic development representatives. The letters notified them of Thursday’s meeting and included information on how to submit comments regarding the potential restart of the plant.