As a part of Governor Cuomo’s newly approved Clean Energy Standard (CES), nuclear energy in upstate New York will be receiving subsidies in the coming years to help it compete with low natural gas prices. As nuclear energy is New York’s greatest zero-carbon energy source, providing for 31 percent of the state’s electricity, its survival is critical if New York is to reduce its carbon emissions. Some have criticized the plan, calling it the largest corporate bailout in the state’s history. Although it may be a bailout, the plan is a step in the right direction. It illustrates New York’s commitment to reducing its green house gas emissions and its willingness to invest in a sustainable future. This portion of the Clean Energy Standard should serve as a model for the rest of the country, and other states should emulate this model to preserve the struggling nuclear industry.

The Clean Energy Standard builds upon New York’s Reforming the Energy Vision, an initiative meant to transition New York to 50 percent renewables by the year 2030. Although nuclear energy is not considered a renewable energy source, it is still the most important zero carbon energy source available right now. New York’s Public Service Commission, the entity that wrote the CES, correctly recognizes nuclear energy as the bridge resource that has enabled New York to lower its carbon emissions as it transitions to renewables.

The plan was created in response to announcements from two nuclear companies that said they would have to cease operations by 2017 if the state did not provide some relief. The plants are failing to compete with natural gas prices, which have been down to under $4 per dekatherm in the past few years, compared to prices in the $6-9 per dekatherm range in the 2000s. Without government assistance, Exelon Corporation would have to close its Robert Emmett Ginna power plant in Ontario, even though the plant is licensed for operation until 2029. The company Entergy would have to close its James A. Fitzpatrick power plant in Scriba, while it is licensed to operate until 2034. These two plants provide 16% of the state’s energy, and if they were to close, it is more than likely that the energy would be replaced by natural gas burning power plants. The Brattle Group, an economic consulting firm, projects that New York’s greenhouse gas emissions would rise by 13 million tons if the two plants were to close.

The Public Service Commission projected the plan would cost about a billion dollars over its first two years, funded by customers paying an additional $2 a month on their electricity bill. The utility providers will pay for the subsidies through zero emissions credits, which will be paid to qualifying power plants that meet the criteria laid out in the CES. The utility providers will then pass the cost down to their customers. At these prices, the plan could end up costing several billions of dollars over the next 12 years, but this is not a reason to shy away from it. The country and the world have struggled to reduce greenhouse gas emissions in past years due to the higher prices of renewables and zero energy sources, but it is time to start investing in the future of the planet. Furthermore, the Public Service Commission projects the subsidies would return about $5 billion dollars in benefits over the next two years, heavily outweighing the costs.

Therefore, the nuclear energy subsidies provided for by the New York’s Clean Energy Standard are a critical step in the state’s clean energy plan. Preserving the nuclear energy sector in New York ensures that the zero-carbon producing resource will continue to produce nearly a third of New York’s energy while it transitions to renewable energy sources. The program should be monitored by nuclear dependent states across the country and should serve as a model for future progress.