Senate Bill 179 aims to build on other efforts to create opportunities for the state to pursue investments in nuclear energy, setting aside $10 million from existing appropriations to the University of Kentucky and the Kentucky Nuclear Energy Development Authority (KNEDA) for grant funding.
Republican state Sen. Danny Carroll, of Paducah, has been a leading voice in nuclear energy development over his decade in office representing Kentucky’s 2nd District. He’s the lead sponsor on the legislation.
“These are historical times and Kentucky has got to step up in this area, or we're going to be left behind,” Carroll told the committee Wednesday ahead of their unanimous vote.
Carroll said that the Commonwealth’s neighbor to the south is ahead of the game when it comes to nuclear energy developments, pointing to Tennessee Gov. Bill Lee’s backing of the industry.
The Volunteer State governor said during his recent State of the State address that he wants Tennessee to be a leader in the space, releasing a proposal for more than $90 million in state investments in nuclear energy. At the center of that plan is a proposed $50 million investment to build the nation’s first commercial small modular reactor at the Clinch River Site in Oak Ridge, Tennessee. Lee also proposed a $10 million investment in the state’s nuclear energy fund. That initiative, enacted two years ago, has helped Tennessee to attract nuclear companies like Kairos, X Energy and Orano.
“Tennessee has taken the lead in this country … and they are getting numerous businesses [and] development[s] coming in related to nuclear, and they are investing heavily in that,” Carroll said. “And Kentucky is going to need to step up so we don't get behind Tennessee and other states that are investing.”
In a release that preceded the meeting, Carroll called nuclear energy a “critical component” of Kentucky’s long-term energy strategy.
“This legislation ensures that our state remains competitive in this rapidly growing sector by providing direct support for nuclear innovation and development,” he said.
Republican state Sen. Brandon Smith, of Hazard, chairs the Senate committee on Natural Resources & Energy. He said it’s imperative that Kentucky capitalizes on President Donald Trump being in office when it comes to energy development.
“It is going to be very pivotal for us to take advantage of having a president that has a, you know, power policy,” Smith said. “They're really dialed into us, and we want Kentucky to catch that.”
U.S. Secretary of Energy Chris Wright, who assumed office in January following Trump’s inauguration, has called nuclear energy a priority for the country. In his first secretarial order, Wright said he aims to “unleash commercial nuclear power in the U.S.”
The program that would be created by SB179 would be administered by the KNEDA, the nonregulatory state agency that was created during the 2024 legislative session. Though Gov. Andy Beshear has said he supports nuclear development in the state, he vetoed the legislation because he believed that the makeup of the authority’s leadership – as directed in the bill – would be unduly influenced by the private sector. The state legislature’s GOP supermajority overrode that veto.
A subcommittee of KNEDA members would be responsible for administering awards from the grant program, which Carroll said would be capped at $2 million. The agency would also be charged with promoting the program, accepting applications and overseeing distribution of funds.
The bill now goes to the full Senate for a vote.
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