Bill Summary
The "Accelerating Reliable Capacity Act of 2026" (ARC Act of 2026) is designed to enhance support for advanced nuclear energy projects that receive loan guarantees from the Department of Energy. The legislation establishes the "Accelerating Reliable Capacity Program," which aims to provide cost certainty for capital-intensive projects eligible under the Energy Policy Act of 2005. Key features include the creation of a dedicated funding account for managing program resources, enhanced financing terms allowing guarantees up to 200% of approved cost estimates, and the assignment of responsibilities regarding cost overruns to borrowers.
Furthermore, the act mandates quarterly updates to congressional committees on project progress and the formation of a working group to provide technical and financial guidance, drawn from various stakeholders. In addition, the legislation amends existing law to allow certain utilities and military installations to receive double benefits for specific projects, including those associated with federal power marketing administrations, military energy procurement, and collaborations with national laboratories. These provisions aim to facilitate the development and implementation of advanced nuclear technologies while ensuring adequate oversight and stakeholder involvement.
Possible Impacts
1. **Increased Funding Opportunities for Advanced Nuclear Projects**: With the establishment of the "Accelerating Reliable Capacity Program," developers of advanced nuclear energy projects will have access to enhanced financing terms, allowing them to secure loan guarantees that cover up to 200% of their approved cost estimates. This increased financial support will enable them to undertake more ambitious and potentially groundbreaking projects, fostering innovation and accelerating the development of advanced nuclear technologies.
2. **Support for Military and Utility Energy Projects**: The legislation introduces exceptions to the denial of double benefits for certain utilities and military installations. As a result, projects that involve collaboration with federal power marketing administrations or military energy procurement efforts will be eligible for additional benefits. This could lead to improved energy security and sustainability for military bases and enhanced energy infrastructure for utilities, ultimately benefiting military personnel and local communities.
3. **Enhanced Oversight and Project Management**: The creation of a dedicated working group to advise on technical and financial aspects of the Accelerating Reliable Capacity Program will ensure that stakeholders, including industry representatives and independent experts, have a voice in project development. This collaborative approach aims to improve project delivery standards and oversight procedures, which will not only help mitigate the risk of cost overruns but also ensure that projects meet rigorous safety and performance criteria, ultimately benefiting consumers and the environment.
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 3814 Introduced in Senate (IS)]
<DOC>
119th CONGRESS
2d Session
S. 3814
To provide enhanced provisions for advanced nuclear energy projects
receiving loan guarantees through the Department of Energy, and for
other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
February 10, 2026
Mr. Risch (for himself and Mr. Gallego) introduced the following bill;
which was read twice and referred to the Committee on Energy and
Natural Resources
_______________________________________________________________________
A BILL
To provide enhanced provisions for advanced nuclear energy projects
receiving loan guarantees through the Department of Energy, and for
other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Accelerating Reliable Capacity Act
of 2026'' or the ``ARC Act of 2026''.
SEC. 2. ACCELERATING RELIABLE CAPACITY PROGRAM.
(a) Purpose.--The purpose of this section is to increase cost
certainty for capital-intensive projects for which a guarantee is
provided under section 1703 or 1706 of the Energy Policy Act of 2005
(42 U.S.C. 16513, 16517).
(b) Definitions.--In this section:
(1) Account.--The term ``account'' means the Accelerating
Reliable Capacity Program Account established by subsection
(c)(1).
(2) Advanced nuclear energy project.--The term ``advanced
nuclear energy project'' means a project for 1 or more advanced
nuclear reactors.
(3) Advanced nuclear reactor.--The term ``advanced nuclear
reactor'' has the meaning given the term in section 951(b) of
the Energy Policy Act of 2005 (42 U.S.C. 16271(b)), except
that, for purposes of this section, the reference to ``reactors
operating on the date of enactment of the Energy Act of 2020''
in paragraph (1)(A) of that section shall be deemed to read
``reactors operating in the United States on the date of
enactment of the Energy Act of 2020 (Public Law 116-260; 134
Stat. 2418)''.
(4) Class 2 estimate.--The term ``Class 2 estimate'' means
an estimate of the cost of a qualifying project that is
prepared in accordance with Recommended Practice No. 18R-97 in
the document of the Association of Cost Engineering entitled
``Cost Estimate Classification System'' (or a successor
document).
(5) Director.--The term ``Director'' means the Director of
the Loan Programs Office.
(6) Expected payment amount.--The term ``expected payment
amount'' means the amount that the Director expects to pay to
the Federal Financing Bank under subsection (d)(2)(B) when a
qualifying project is placed in service.
(7) Guarantee.--The term ``guarantee'' has the meaning
given the term in section 1701 of the Energy Policy Act of 2005
(42 U.S.C. 16511).
(8) Loan programs office.--The term ``Loan Programs
Office'' means the Loan Programs Office of the Department of
Energy.
(9) Overrun.--The term ``overrun'', with respect to the
costs of a qualifying project, means any costs in excess of the
point base estimate of the Class 2 estimate approved as
described in paragraph (12)(C)(iv).
(10) Point base estimate.--The term ``point base
estimate'', with respect to a Class 2 estimate, means the value
of the Class 2 estimate without adjustment for the accuracy
range or contingency.
(11) Project delivery plan.--The term ``project delivery
plan'' means a project plan that includes--
(A) a project execution plan (as defined in
Recommended Practice 10S-90 of the Association for the
Advancement of Cost Engineering entitled ``Cost
Engineering Terminology'' (or a successor document));
(B) a contract risk allocation strategy that--
(i) aligns cost and risk incentives among
all contracted stakeholders; and
(ii) follows--
(I) the best practices described in
Recommended Practice 67R-11 of the
Association for the Advancement of Cost
Engineering entitled ``Contract Risk
Allocation - As Applied in Engineering,
Procurement, and Construction'' (or a
successor document); or
(II) other appropriate industry
best practices, as determined by the
Secretary; and
(C) a plan for the division of responsibility
between contracted stakeholders that describes roles
and responsibilities for execution of that project
plan.
(12) Qualifying project.--The term ``qualifying project''
means an advanced nuclear energy project--
(A) that is reasonably expected to be constructed
on time and on budget, as determined by the Secretary;
(B) that is--
(i) determined by the Secretary to be
reasonably capital-intensive; and
(ii) connected to the electric power grid;
and
(C) with respect to which--
(i) the loan amount expected to be
guaranteed under section 1703 or 1706 of the
Energy Policy Act of 2005 (42 U.S.C. 16513,
16517) is--
(I) loaned through the Federal
Financing Bank; and
(II) equal to or greater than the
amount that is twice the amount of
funds obligated to the qualifying
project under this section;
(ii) the borrower of that amount--
(I) has established and submitted
to the Director a project delivery
plan;
(II) has established and submitted
to the Secretary--
(aa) a Class 2 estimate
with--
(AA) basis of
estimate documentation
for that Class 2
estimate; and
(BB) a qualifying
project cost risk
analysis;
(bb) a resource-loaded
integrated project schedule
with--
(AA) basis of
estimate documentation
for that resource-
loaded integrated
project schedule; and
(BB) a qualifying
project schedule risk
analysis; and
(cc) a labor survey
analysis report with--
(AA) basis of
estimate documentation
for that labor survey
analysis report; and
(BB) a labor risk
analysis; and
(III) has established procedures
with the Secretary to ensure enhanced
project oversight, including--
(aa) a rolling forecast
that--
(AA) updates the
resource-loaded
integrated project
schedule not less
frequently than
annually, in alignment
with the approved
changes in the
applicable change
management program; and
(BB) includes a new
qualifying project
schedule risk analysis
to match the most
recent update; and
(bb) a meeting between the
Secretary, the Director, and
senior-level representatives of
all contracted stakeholders in
the project to review progress
and, if necessary, decide
corrective actions and
responsibilities for
implementation, to be held on a
quarterly basis until the date
on which construction has
concluded;
(iii) the Director has approved the project
delivery plan submitted under clause (ii)(I)
prior to financial close; and
(iv) the Secretary has approved the project
planning documents submitted under clause
(ii)(II) prior to financial close.
(13) Qualifying project cost risk analysis.--The term
``qualifying project cost risk analysis'' means a cost risk
analysis that follows--
(A) the best practices described in the document of
the Government Accountability Office entitled ``Cost
Estimating and Assessment Guide: Best Practices for
Developing and Managing Program Costs'', numbered GAO-
20-195G, and dated March 2020 (or a successor
document); or
(B) other appropriate industry best practices, as
determined by the Secretary.
(14) Qualifying project schedule risk analysis.--The term
``qualifying project schedule risk analysis'' means a schedule
risk analysis that follows--
(A) the document of the Government Accountability
Office entitled ``Schedule Assessment Guide: Best
Practices for Project Schedules'', numbered GAO-16-89G,
and dated December 2015 (or a successor document); or
(B) other appropriate industry best practices, as
determined by the Secretary.
(15) Resource-loaded integrated project schedule.--The term
``resource-loaded integrated project schedule'' means an
approved schedule that follows--
(A) the best practices described in the document of
the Government Accountability Office entitled
``Schedule Assessment Guide: Best Practices for Project
Schedules'', numbered GAO-16-89G, and dated December
2015 (or a successor document); or
(B) other appropriate industry best practices, as
determined by the Secretary.
(16) Rolling forecast.--The term ``rolling forecast'' means
a process for regularly updating a resource-loaded integrated
project schedule.
(17) Secretary.--The term ``Secretary'' means the Secretary
of Energy.
(c) Accelerating Reliable Capacity Program Account.--
(1) Establishment.--There is established in the Loan
Programs Office an account, to be known as the ``Accelerating
Reliable Capacity Program Account''.
(2) Management.--The account shall be managed by the
Director.
(3) Use of amounts.--The Director may use amounts in the
account to make payments pursuant to subsection (d)(2)(B).
(4) Obligation of amounts.--Amounts in the account shall
be--
(A) contingently obligated to a borrower on the
approval by the Secretary of a conditional commitment
that includes satisfaction of the requirements for a
qualifying project under this section as a condition of
financial close, subject to the conditions that--
(i) the borrower shall be considered
current so long as the borrower continues to
make progress toward satisfying the conditions
required for financial close and requirements
agreed upon in the conditional commitment, as
determined by the Secretary; and
(ii) if the Secretary determines that the
borrower is not making progress in good faith
as described in clause (i), the contingently
obligated amounts shall be made available to
other borrowers; and
(B) obligated to the applicable borrower at
financial close.
(5) Obligation and expenditure.--The obligation of amounts
in the account shall not be considered to be an expenditure of
those amounts unless the amounts are disbursed pursuant to
subsection (d)(2)(B).
(6) Funding.--
(A) Authorization of appropriations.--There is
authorized to be appropriated to the Secretary
$3,600,000,000 for deposit into the account.
(B) Availability of amounts.--Amounts deposited in
the account under subparagraph (A) or otherwise shall
remain available until expended.
(d) Overrun Liability.--
(1) Borrower liability for initial cost overruns.--With
respect to a qualifying project for which a guarantee is
provided under section 1703 or 1706 of the Energy Policy Act of
2005 (42 U.S.C. 16513, 16517), the borrower on the guaranteed
loan shall be responsible for all overruns until the cumulative
expenses of the qualifying project exceed 120 percent of the
point base estimate of the Class 2 estimate.
(2) Payment by the director.--
(A) Expected payment amount.--With respect to a
qualifying project for which a guarantee is provided
under section 1703 or 1706 of the Energy Policy Act of
2005 (42 U.S.C. 16513, 16517), the Director shall
update the expected payment amount quarterly, subject
to the conditions that--
(i) cumulative expenses of the qualifying
project have exceeded 120 percent of the point
base estimate of the Class 2 estimate;
(ii) the quarterly increase to the expected
payment amount does not exceed 50 percent of
total expenses in that quarter for the
qualifying project;
(iii) the updated expected payment amount
does not exceed the maximum payment amount
described in subparagraph (B)(ii);
(iv) the applicable guaranteed loan is not
in default;
(v) the prospect of increasing the payment
amount does not incentivize unnecessary
spending; and
(vi) any increases to the payment amount
are made in accordance with good governance
principles.
(B) Payment.--
(i) In general.--When a qualifying project
is placed in service, the Director shall--
(I) determine the final payment
amount based on--
(aa) the expected payment
amount determined under
subparagraph (A); and
(bb) any additional
cumulative expenses of the
applicable qualifying project,
determined in accordance with
that subparagraph; and
(II) pay that final payment amount
to the Federal Financing Bank (as the
lender of the applicable guaranteed
loan) from the account.
(ii) Maximum payment amount.--The maximum
payment amount under this subparagraph for any
1 qualifying project may not exceed the lesser
of--
(I) 30 percent of the point base
estimate; and
(II) $1,200,000,000.
(iii) Application of payment.--A payment
under this subparagraph shall be applied to the
principal amount of the applicable guaranteed
loan.
(iv) Requirement.--The Director may make a
payment under this subparagraph only if the
applicable guaranteed loan is not in default.
(e) Enhanced Financing Terms for Qualifying Projects.--
(1) In general.--Notwithstanding title XVII of the Energy
Policy Act of 2005 (42 U.S.C. 16511 et seq.) or any other
provision of law, the Director shall offer the enhanced
financing terms described in paragraph (2) for a guarantee
provided under section 1703 or 1706 of that Act (42 U.S.C.
16513, 16517) with respect to a qualifying project.
(2) Enhanced financing terms described.--The enhanced
financing terms referred to in paragraph (1) are the following:
(A) Notwithstanding section 1702(c) of the Energy
Policy Act of 2005 (42 U.S.C. 16512(c)), a guarantee
may be an amount up to 200 percent of the point base
estimate of the Class 2 estimate approved as described
in subsection (b)(12)(C)(iv) for the qualifying project
that is the subject of the guarantee.
(B) The Director shall seek a commitment from the
Federal Financing Bank (as lender of a guaranteed loan)
to amend or restructure, if appropriate, the applicable
guaranteed loan to reflect the revised principal amount
after payment under subsection (d)(2)(B).
(f) Quarterly Notification and Briefing.--Not later than 7 days
after each quarterly meeting described in subsection
(b)(12)(C)(ii)(III)(bb), the Secretary shall submit to the Committee on
Energy and Natural Resources and the Committee on Appropriations of the
Senate and the Committee on Energy and Commerce and the Committee on
Appropriations of the House of Representatives a notification
describing the results of that meeting.
(g) Working Group.--
(1) Establishment.--The Secretary shall establish a working
group, to be known as the ``Accelerating Reliable Capacity
Working Group'' (referred to in this subsection as the
``Working Group''), to advise the Secretary in the technical,
financial, and programmatic aspects of the program established
under this section, including providing advice with respect
to--
(A) developing standards for project delivery
plans;
(B) procedures for the enhanced project oversight
described in subsection (b)(12)(C)(ii)(III); and
(C) industry best practices.
(2) Membership.--Members of the Working Group shall be
appointed by the Secretary, but shall include--
(A) representatives of--
(i) private sector advanced nuclear reactor
technology developers; and
(ii) the Federal Financing Bank or another
Federal lending program;
(B) independent technical experts in nuclear
energy, engineering, or project management; and
(C) representatives of any other entity that the
Secretary determines appropriate.
SEC. 3. EXCEPTION TO DENIAL OF DOUBLE BENEFIT PROVISION FOR CERTAIN
UTILITIES AND MILITARY INSTALLATIONS.
Section 50141(d)(3) of Public Law 117-169 (136 Stat. 2043) is
amended--
(1) in subparagraph (C), by striking ``or'' at the end;
(2) in subparagraph (D), by striking the period at the end
and inserting a semicolon; and
(3) by adding at the end the following:
``(E) projects partnering with, including projects
owned by or under the control of, a Federal power
marketing administration or the Tennessee Valley
Authority;
``(F) projects partnering with--
``(i) an entity that procures energy for a
military installation (as defined in section
2801(c) of title 10, United States Code) that
is managed by the Secretary of Defense or a
contractor of the Secretary of Defense; or
``(ii) the General Services Administration
for the purpose of energy procurement;
``(G) projects benefitting from National
Laboratories (as defined in section 2 of the Energy
Policy Act of 2005 (42 U.S.C. 15801)) or user
facilities for testing, data collection, permitting, or
other allowable uses, as determined by the Secretary;
or
``(H) projects using nuclear fuel procured under or
pursuant to the Nuclear Fuel Security Act of 2023 (42
U.S.C. 16282).''.
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