According to Risch’s office, financing costs could account for up to 25 percent of the total plant cost. It would create a federal risk-reduction program designed to protect companies against unforeseen cost overruns, a major hurdle for FOAK reactor designs. Reducing these upfront costs will increase the likelihood of advanced nuclear projects being completed.
Quotes at hand: Risch and Gallego believe the bill will boost the competitiveness of the United States in the global market and also help with long-term electricity demand for clean, firm power.
Risch, a longtime advocate of nuclear energy and cochair of the Senate Advanced Nuclear Caucus, said the legislation is intended to help the United States remain competitive as global demand for reliable power grows. “The U.S. must remain the undisputed global leader when it comes to nuclear energy,” he said.
Gallego said rising electricity demand and the need for clean, steady power make advanced reactors an important option for utilities. “With energy demand growing rapidly across the country, nuclear energy is key to increasing baseload energy cleanly and reliably.”
The specifics: The bill should help kickstart at least three advanced nuclear projects, according to Risch, by allowing qualified projects to be eligible for enhanced financing terms. With the ability to authorize up to $3.6 billion of funding, the ARC Act could put incentives in place to encourage project completion, according to Risch. The loan guarantees will have built-in increases to avoid delays for additional capital, and, in cases where costs exceed 120 percent of the DOE-verified estimate, ARC funding will be applied to the loan balance after the project is placed in service. The enhanced financing terms for a qualified project include a loan guarantee up to 200 percent of the verified cost estimate.
The 18-page bill is available online for those interested in reading the full text.
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