DOE loan, task force report spur nuclear momentum in Iowa

NextEra Energy has secured a Department of Energy loan of up to $1.9 billion for its restart of the Duane Arnold nuclear power plant in Linn County, Iowa.

The announcement that NextEra and the DOE's Office of Energy Dominance Financing had closed on a loan came this morning, less than a week after the state's Nuclear Energy Task Force issued a final report on the feasibility of new nuclear projects in Iowa.

"Returning 615 megawatts of reliable baseload generation will drive down electricity costs while supporting thousands of American jobs," Deputy Secretary of Energy James Danly said in a statement. "This administration is pursuing a comprehensive nuclear strategy, restarting existing reactors, increasing the output of our nuclear fleet, and accelerating new construction, to build the abundant, affordable, and reliable power system required for American prosperity and reindustrialization."

Duane Arnold, Iowa's only nuclear power plant, was shuttered in 2020. But in October 2025, NextEra officially announced its plans to restart the plant as early as 2029. Along with Tuesday's DOE loan announcement, the Duane Arnold project received good news earlier this summer when the Nuclear Regulatory Commission issued its preliminary environmental assessment and determination that the restart would have no significant environmental impacts.

Task force unveils final report: At the start of the year, Iowa Gov. Kim Reynolds signed an executive order to form the Iowa Nuclear Energy Task Force-a panel representing utilities, power production companies, local government, academia, the Iowa Utilities Commission, and the Iowa General Assembly-with one goal in mind: to assess and study the potential of new nuclear in the state.

On Thursday, Reynolds released the task force's 130-page report, which includes nine recommendations for pursuing advanced nuclear power initiatives and projects in the state.

"Overall, we believe that deploying advanced nuclear reactors could play an important role in providing affordable, reliable, and sustainable energy to meet the growing demand forecasted for Iowa," task force chair Mark Nutt said in the report. "Iowa has a strong education, trades, and workforce foundation that uniquely position the state to lead a growing nuclear enterprise."

The task force recommended nine policy actions it believes would demonstrate the state's "readiness to embrace the nuclear power industry, prepare the state for the opportunities that arise in this space, and ensure that the Iowa communities are thoroughly educated and supported as they decide how they might play a role in this industry":

• Establish a "single point of contact" at the state level devoted to nuclear-related activities.
• Conduct a statewide nuclear feasibility study.
• Incentivize Iowa businesses to grow or enter the nuclear energy industry, attract nuclear-related businesses to the state, and/or strengthen the nuclear workforce.
• Explore, identify, and pursue incentives and policy changes at the state level to drive nuclear reactor investments.
• Create a state "nuclear-ready program" that provides guidance and support for communities interested in hosting new nuclear facilities.
• Better align the state's workforce development pathways with careers in nuclear.
• Coordinate with the federal government to clarify, expand, and create incentive programs related to nuclear energy.
• Consider the state's role in spent nuclear fuel.
• Position Iowa projects and parties in new nuclear to better pursue federal funding.

Unsurprisingly, Duane Arnold is referenced multiple times in the report. The task force cited Duane Arnold and its prior operational experience as a foundational strength to grow the nuclear workforce at that facility or elsewhere in the state.

The restart efforts have also painted a picture for the task force and others as to the economic impact a nuclear facility could have on communities. According to the report, the restart will generate $346 million in economic impact and more than $135 million in labor earnings across the state of Iowa annually in the first 25 years of operation; and during that same timeframe, it will generate roughly $320 million in economic output and generate $128 million in labor earnings in Linn County. It also will create 1,181 direct, indirect, and induced jobs in Iowa, with 1,046 of those jobs in Linn County.

Nuclear deployment opportunities like the Duane Arnold restart will ultimately position Iowa for long-term nuclear supply chain growth, the report said.

"At the same time, stakeholder interviews confirm that the Duane Arnold Energy Center restart itself is unlikely to create substantial new nuclear manufacturing activity within Iowa in the near term," the report added. "NextEra Energy is leveraging an established national nuclear supply chain and existing qualified vendors to support restart activities. Local participation will primarily derive from labor, construction support, maintenance services, and general industrial activities rather than large scale nuclear-grade manufacturing."

The task force advised against any "aggressive" efforts to localize the Duane Arnold restart supply chain for now. However, the task force said the restart can provide a teachable moment and set a foundation from which the state evaluates long-term "nuclear ecosystem development opportunities."