S. 3814

[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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