S. 3814: Accelerating Reliable Capacity Act of 2026

The Accelerating Reliable Capacity Act of 2026 aims to facilitate advanced nuclear energy projects by enhancing the financial provisions associated with them. Here’s a breakdown of its main components:

Purpose of the Bill

The bill primarily seeks to increase the cost certainty for capital-intensive energy projects that receive loan guarantees from the Department of Energy under the Energy Policy Act of 2005.

Definitions

Key terms outlined in the bill include:

• Advanced nuclear energy project: A project that involves one or more advanced nuclear reactors.
• Qualifying project: An advanced nuclear energy project that meets certain criteria such as being connected to the electric power grid and expected to be constructed on time and on budget.
• Class 2 estimate: A specific type of cost estimate used for evaluating projects.

Formation of a Special Account

The bill establishes the Accelerating Reliable Capacity Program Account to manage funds for guaranteeing loans for qualifying projects. The account will be funded with appropriations authorized up to $3.6 billion and will remain available until expended.

Overrun Liability

Should costs exceed the approved budget, there are defined responsibilities regarding who bears the financial burden for these overruns. Borrowers will be responsible for overruns up to 120% of the approved cost estimate before the government assumes responsibility for further increases.

Enhanced Financing Terms

The bill provides for enhanced financing options, allowing guarantees to cover an amount up to 200% of the approved cost estimate for qualifying projects. This aims to improve access to funds for energy projects involving advanced nuclear technology.

Project Oversight and Risk Management

To ensure effective management and oversight of projects receiving funding, the bill mandates the development of detailed project plans. These must include risk assessments and follow best practices as determined by the Secretary of Energy.

Additionally, the Secretary is required to convene quarterly meetings with project stakeholders to review project progress and make necessary adjustments.

Working Group Formation

The bill also calls for the establishment of a working group to advise on technical, financial, and operational aspects of the projects funded under this bill. The group will include experts from nuclear energy technology, project management, and other stakeholders in the energy sector.

Exceptions to Double Benefit Provision

Moreover, the bill modifies existing provisions to allow certain utilities and military installations to receive benefits without conflict, particularly regarding projects that involve federal power administrations or military energy procurement.

Relevant Companies

• BE - Bloom Energy, which focuses on clean energy solutions and might be involved in advanced nuclear technology integration.
• NEE - NextEra Energy, a major player in renewable energy that might explore nuclear energy as a part of their clean energy portfolio.
• EXC - Exelon Corporation, which is heavily invested in nuclear energy and could potentially benefit from enhanced financing for its nuclear projects.