New York State policy roadmap proposes billions in nuclear subsidies
New York State has released a policy roadmap proposing up to $23.9 billion in public subsidies for building 5 gigawatts of new nuclear power by 2050 to bolster its electric grid. This plan aims to meet increasing electricity demand from consumers and technology companies, but faces opposition over costs and radioactive waste. A proposed nuclear moratorium bill did not advance this legislative session.
New York State's government has unveiled a policy roadmap, the "Advanced Nuclear Policy Options Paper," outlining up to $23.9 billion in public subsidies to develop 5 gigawatts of new nuclear power by 2050. This initiative, championed by Democratic Governor Kathy Hochul, seeks to strengthen the state's electric grid amidst rising electricity demand from everyday consumers and large technology companies, including data centers.
The Department of Public Service (DPS) and NYSERDA published the paper, which proposes four multi-billion-dollar schemes involving various reactor designs. The plan suggests the state would need to pay companies between $15.4 billion and $23.9 billion over 40 years to make these projects financially viable, potentially passing costs onto taxpayers and utility customers through higher electric bills. State analysts identified redevelopment of existing nuclear sites as a potentially cheaper option. The Public Service Commission (PSC) is currently accepting public comments on these options until August 10, with formal recommendations expected by November 13. Governor Hochul also announced a new PSC mechanism, the “Nuclear Reliability Backbone Process,” to integrate new reactors, and the PSC extended the state’s existing Zero Emission Credit program through 2049.
The proposal has drawn both support and criticism. Ed Nadeau, President of the New York State Pipe Trades Association, advocated for nuclear power to secure reliability and create jobs. Republican Assemblymembers Scott Gray and Matt Simpson linked increased nuclear supply to the energy needs of data centers, arguing they could make projects bankable and opposing a separate data center moratorium bill that passed.
However, Democratic Assemblymember Jo Anne Simon and State Senator Kevin S. Parker proposed a 30-month nuclear moratorium bill (S9962A/A11433A) this spring, which would have barred state funding for unproven nuclear projects pending a study of financial and environmental impacts. While the bill did not advance this session, Simon indicated it is not dead, citing concerns about high costs, radioactive waste disposal, and potential cost overruns seen in other projects. State Comptroller Thomas DiNapoli previously warned against using public funds for corporate welfare, urging Big Tech to finance data center upgrades themselves. The options paper itself noted that out-of-state companies would likely manufacture necessary components, and a reliance on federal tax credits could leave New Yorkers with additional costs if construction is delayed.