Environmentalists try to block nuclear growth in Texas

WADSWORTH -- Mar 19 - Victoria Advocate (TX)

One of the largest nuclear power facilities in North America plans to double in size.

The Nuclear Regulatory Commission recently gave the South Texas Project the green light to build two new reactors at its plant between Bay City and Palacios . The company is holding off on building the reactors because of low natural gas prices and a lack of demand for new energy in Texas .

But state environmental groups want the company's licenses yanked. They say the licenses violate the Atomic Energy Act, which prohibits foreign control or domination of a U.S. nuclear project.

The reason why foreign countries are not allowed to control a U.S. nuclear power plant is to ensure that the country's power supply cannot be held hostage by a country that could become an enemy in the future, said Tom "Smitty" Smith , the director of the Public Citizen's Texas office.

Nuclear Innovation North America is the company that secured the licenses for STP.

The company is 90 percent owned by NRG Energy , an American company, and 10 percent owned by Toshiba , a Japanese company, said Mark McBurnett , the CEO of Nuclear Innovation North America .

"That issue was fully litigated in a judicial proceeding," McBurnett said. " Toshiba has a 10 percent ownership, but they have absolutely no control with that small percentage."

But Robert Eye , an attorney representing Public Citizen, the Sustainable Energy and Economic Development Coalition and the South Texas Association for Responsible Energy , said Toshiba has been fully funding the pre-licensing proceedings for the new reactors since 2011.

"In our view, the entity who funds it then has the ability to control it," he said. "And, in that regard, that's an important legal issue because they may use this license at some point, or they may try to use this license at some point. And, in our view, it's not a valid license."

Nuclear dipped slightly in the Texas energy market between 2007 to 2013, according to data from the Electric Reliability Council of Texas . As of 2013, nuclear made up slightly more than 10 percent of electricity generated in the state. During that same period, wind energy grew to about 10 percent.

The price tag for nuclear makes it unlikely that STP's project will ever get off the ground, said Karen Hadden , the executive director of the Sustainable Energy and Economic Development Coalition . Nuclear Innovation North America has said building the project could cost $15 billion .

But Hadden said it's likely to cost closer to $17.5 billion .

"Solar and wind are still incredibly affordable," she said. "Those industries are growing in Texas and increasing their share of the market and that is where the future lies."

The EPA 's Clean Power Plan, which aims to reduce carbon emissions from the power sector to 32 percent below 2005 levels by 2030, could help sway the market back toward nuclear energy, McBurnett said.

"If we are ever going to reduce carbon emissions, nuclear power is going to be an essential part of that plan," he said.

The company expects to begin construction in the next few years, with the two new reactors coming online by the mid-2020s. The company's timeline is based on the federal government's long-term projections for energy prices, he said.

STP made the decision to seek the permits in 2006, when natural gas prices were high and were expected to stay high.

"There was a significant new demand, and it really appeared that nuclear would be competitive," McBurnett said.

But in 2011, waves from a tsunami crashed over a sea wall surrounding the Fukushima nuclear power plant in Japan , causing reactors to overheat and melt down. That same year, natural gas prices plummeted.

"Fukushima created uncertainty," McBurnett said. "NRG decided to stop activities related to engineering and construction but to continue with licensing with the thought that the market could change."

While nuclear energy facilities may not emit greenhouse gases during power generation, they create a toxic byproduct, Hadden said.

"I don't think there is anything clean about nuclear power," she said. "They produce radioactive waste, and we don't have a good answer to how to handle that waste even today, after decades of nuclear power plants."

STP went online with its first reactor in Matagorda County in 1987 and its second reactor in 1988. The two reactors generate 2,700 megawatts of electricity. Two new reactors would double that output.

The power facility is the largest employer in the county with about 1,200 people on the payroll.

The company conducts monthly safety training in the county, said Matagorda County Judge Nate McDonald . He said he feels good about the possibility of 800 more jobs, which could be created by the two new reactors.

"If it's a plant that's proved its mettle as they have over the years, I think a level of comfort develops. And please don't mistake a level of comfort for level of complacency because we are not complacent," he said. "We train truly all over the county to be ready for any kind of an event that may occur."

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