DES MOINES — Iowa should begin searching for possible nuclear reactor sites, prepare communities to host nuclear facilities, expand worker training and consider state incentives capable of attracting billions of dollars in nuclear investment, according to a sweeping new report delivered to Gov. Kim Reynolds.
Reynolds released the 130-page final report from the Iowa Nuclear Energy Task Force on Thursday, September 3. The group was created by Executive Order 17 in January and spent five months examining how Iowa could become a major player in the expanding nuclear industry.
The report contains nine primary recommendations, along with a tenth suggested area for additional study involving Iowa’s utility replacement tax.
“Nuclear energy represents an important opportunity for Iowa to strengthen our energy portfolio, support economic growth and meet the increasing demand for reliable power,” Reynolds said.
The task force’s recommendations include:
- Create a single state office or point of contact to coordinate nuclear-energy development, work with utilities and developers, assist communities and pursue federal funding.
- Conduct a statewide feasibility study identifying areas potentially suitable for nuclear development based on population, geology, flooding and seismic risks, water availability, transmission capacity, roads, rail access, workforce and community acceptance.
- Explore incentives helping existing Iowa manufacturers enter or expand within the nuclear supply chain while attracting additional nuclear-related companies.
- Consider state incentives and policy changes encouraging utilities, developers and investors to pursue nuclear reactor projects in Iowa.
- Create a voluntary “nuclear-ready” program helping interested communities evaluate nuclear projects, educate residents, address zoning requirements and demonstrate their willingness to host a facility.
- Expand nuclear-related workforce programs through Iowa’s universities, community colleges, skilled-trades organizations, apprenticeships and K-12 schools.
- Work with federal officials to clarify and expand tax credits, financing programs, workforce assistance and other incentives for nuclear projects.
- Determine what role Iowa should play in addressing spent nuclear fuel while continuing to press the federal government to develop a permanent waste solution.
- Position Iowa communities, businesses, utilities and proposed projects to compete for federal nuclear-energy funding.
The report also suggests studying changes to Iowa’s utility replacement tax. Task force members said the existing system may prevent communities hosting large generating facilities from receiving all the local tax benefits they expect, potentially weakening their incentive to accept a nuclear project.
The recommendations do not authorize construction of a reactor or identify a specific new site. No dollar amounts are attached to the proposed state incentives.
Instead, the report lays out preliminary steps state leaders could take before utilities or developers make decisions involving individual communities.
One of the most consequential proposals calls for the Iowa Economic Development Authority to screen locations across the state for nuclear-development potential.
The study would examine access to high-voltage transmission lines, highways, railroads and water, along with population density, geological conditions, flood and earthquake risks, workforce availability and a community’s history with nuclear power or other large generating plants.
Communities passing the initial technical screening could then choose whether to enter the proposed nuclear-ready program.
The program would allow communities to learn about nuclear energy before deciding whether to move forward. Those seeking formal nuclear-ready status could be required to educate local leaders and residents, update zoning regulations and evaluate effects on housing, roads, emergency services and other public infrastructure.
The task force also recommended developing a framework for community-benefit agreements intended to protect local governments from costs connected with a major project.
The report arrives as electricity demand climbs rapidly in Iowa, driven heavily by industrial expansion and enormous proposed data centers.
NorthIowaToday.com previously reported that data-center growth and other pressures could contribute to sharply higher electric bills as utilities build additional generation and transmission infrastructure.
The task force found that electricity sold to Iowa customers increased 24 percent between 2015 and 2025, with industrial demand rising considerably faster than residential or commercial use.
The Midcontinent Independent System Operator, which manages the electric grid covering most of Iowa, expects peak demand across its territory to grow about 23 percent between 2025 and 2035.
Alliant Energy reported signing agreements connected with four data centers representing a combined 3 gigawatts of new electrical demand. Three of those facilities are in Iowa, while the fourth is in Wisconsin. The utility was also negotiating with other potential data-center projects that could add another 2 to 4 gigawatts.
MidAmerican Energy reported load growth of 8.8 percent during 2025, primarily because of data centers.
The issue is no longer limited to Iowa’s largest metropolitan areas. A company recently sought to rezone more than 724 acres of Hancock County farmland for a possible data center, as detailed in NIT’s report on the massive development proposal headed for a public zoning hearing in Garner.
Iowa currently generates no electricity from nuclear power. However, the state produced 61 percent of its electricity from wind and solar facilities in 2025, the largest percentage in the country, according to the task force.
The report argues that additional generation capable of running continuously will be needed as demand grows and coal-fired plants retire. Changes to regional reliability rules will also sharply reduce how much wind and solar generation may be counted toward meeting peak capacity requirements.
Iowa’s most immediate nuclear development is the planned restart of the 615-megawatt Duane Arnold Energy Center near Palo. The plant shut down in 2020 but is being prepared for a return to service through a partnership involving NextEra Energy and Google.
The task force estimates that operation of Duane Arnold could support approximately 1,181 jobs across Iowa, producing about $135 million in wages and $346 million in total economic output.
Iowa utilities have relied on Duane Arnold before. NIT reported in 2013 that Interstate Power and Light extended an agreement to purchase electricity from the nuclear plant as part of its long-term energy strategy.
The task force also examined new small modular reactors and other advanced designs.
Its report estimates that operating a hypothetical 300-megawatt small modular reactor could support about 352 direct, indirect and induced jobs while adding approximately $212.5 million in annual economic output. Larger reactors could create substantially greater employment and economic activity.
Construction could bring thousands of temporary workers into a host region, but it could also strain housing, schools, roads, emergency services and other community resources.
Nuclear facilities may require considerable water for cooling, although the amount varies by reactor design. Plants also require security areas, emergency-planning zones and extensive federal review by the Nuclear Regulatory Commission.
The task force acknowledged that nuclear projects carry serious financial challenges, including enormous initial expenses, lengthy development and construction schedules and uncertainty surrounding newer reactor technologies.
It concluded that new plants may be economically competitive when developers can take advantage of federal incentives, account for local economic benefits and divide financial risk appropriately among utilities, developers, governments and other stakeholders.
The report does not recommend placing all of that risk on Iowa taxpayers or electric customers, but it asks state officials to explore grants, tax incentives, loan guarantees, cost-sharing arrangements and other support.
Questions about consumer protection have surrounded Iowa nuclear proposals for years. When lawmakers considered legislation supporting a new MidAmerican Energy nuclear project in 2012, NIT reported that legislators were debating how to shield ratepayers from the cost and financial risk of developing a plant.
Spent nuclear fuel remains another unresolved issue.
The federal government is legally responsible for developing a permanent solution, but it has not established an operating long-term repository. Used fuel is consequently stored in secure facilities at the nuclear plants where it was generated.
The task force recommended that Iowa continue pressing federal officials to remove spent fuel from temporary storage sites while educating communities about existing storage systems. It cautioned that imposing additional state taxes or fees on spent fuel could conflict with Iowa’s effort to attract nuclear development.
Workforce preparation would begin long before a new reactor opened. The report calls for nuclear-related degrees, certificates and training programs through Iowa’s public universities and community colleges, along with expanded apprenticeships for electricians, pipefitters, welders, mechanics and other skilled workers.
The group also suggested introducing nuclear-energy awareness and career programs in Iowa’s K-12 schools.
Task force chairman Dr. Mark Nutt said Iowa’s universities, skilled trades, manufacturing base and existing workforce give the state a strong foundation for participating in the nuclear industry.
Reynolds initially signaled her interest in nuclear energy during her 2025 Condition of the State address. At the time, she described the technology’s potential as substantial while acknowledging that investment requirements were large and development timelines were long. NIT published the governor’s complete Condition of the State address.
The Iowa Economic Development Authority’s Energy Office staffed the task force. Its members represented Alliant Energy, MidAmerican Energy, NextEra Energy, organized labor, Iowa State University, Linn County, the Iowa Utilities Commission, the Pacific Northwest National Laboratory and both political parties in the Iowa Legislature.
The complete Iowa Nuclear Energy Task Force final report may be viewed here.
Maybe storing spent nuclear fuel here in Iowa would help bring our cancer rate down. Meatballs.