Sens. James Risch (R-Idaho) and Ruben Gallego (D-Ariz.) reintroduced a bill this week to reduce financial risk for new nuclear projects.
The 18-page Accelerating Reliable Capacity (ARC) Act establishes a risk reduction program for new reactors by placing safeguards against potential costs through financing terms and a limited federal cost share, according to the senators’ Tuesday joint press release.
The borrower of the loan will be responsible for all project overruns until the collective expenses of the qualifying project exceeds 120% of the DOE’s estimate. Once it exceeds that limit, ARC program funding will be enacted, which includes a loan guarantee up to 200% of the point base estimate.
The highest payment of one qualifying project cannot exceed the lesser of 30% of the point base estimate and $1.2 billion, according to the bill.
Risch has pushed for the ARC Act before in December 2024.
In the new bill, Risch and Gallego said the Accelerating Reliable Capacity Program Account should be established in the Department of Energy’s Loan Program Office, now known as the Office of Energy Dominance Financing and overseen by the director of the financing office.
The ARC program would authorize up to $3.6 billion to help offset the financial risk of cost runovers. The program would be used for three or more advanced nuclear energy projects to help launch into commercialization.
Risch, a long-time nuclear advocate in Congress, said the ARC Act will ensure that the United States puts practices in place to mitigate the financial risks of new nuclear investments
“The U.S. must remain the undisputed global leader when it comes to nuclear energy,” Risch said. “To do so, we need advanced reactors that can meet growing energy demand here at home and we can deliver to customers around the world.”
Gallego, a nuclear supporter whose state includes the Palo Verde nuclear plant, said that getting new nuclear projects off the ground can be a financial burden to many companies. With the ARC Act legislation, reducing that financial risk will help the United States maintain leadership in the nuclear sector, he added.
Last May, Energy Secretary Chris Wright told a Senate subcommittee that the Loan Programs Office will be the key support in funding new nuclear projects when DOE was considering a “fiscal 2026 skinny budget” then.
Wright said he envisioned that the financing office would be heavily leaned on for the deployment of small modular reactors (SMRs), which he considered critical to the nation’s power generation needs.