,,ii #aahth ,,congress #b;d ,session ,s4 #edba ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,december #d1 #bjbd,mr4 ,risch introduced the following bill2 which was read twice and referred to the ,committee on ,finance ,a ,,bill ,to provide enhanced provisions for advanced nuclear energy projects receiving loan guarantees through the ,department of ,energy1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,accelerating ,reliable ,capacity ,act of #bjbd or the ,,arc ,act of #bjbd4 #b4 ,new ,nuclear ,investment ,accelerator ,program 7a7 ,purpose ,the purpose of this section is to increase cost certainty for capital-intensive projects for which a guarantee is provided under section #agjc or #agjf of the ,energy ,policy ,act of #bjje 7#db ,u4,s4,c4 #afeac1 #afeag74 7b7 ,definitions ,in this section3 7#a7 ,account ,the term account means the ,new ,nuclear ,investment ,accelerator ,program ,account established by subsection 7c77#a74 7#b7 ,advanced nuclear energy project ,the term advanced nuclear energy project means a project for #a or more advanced nuclear reactors 7as defined in section #iea7;b7 of the ,energy ,policy ,act of #bjje 7#db ,u4,s4,c4 #afbga7;b7774 7#c7 ,class #b estimate ,the term ,class #b estimate means an estimate of the cost of a qualifying project that is prepared in accordance with the industry-specific cost estimate standards for nuclear power industries described in ,recommended ,practice #aae,r-#ba of the ,association for the ,advancement of ,cost ,engineering entitled ,cost ,estimate ,classification ,system--,as ,applied in ,engineering1 ,procurement1 and ,construction for the ,nuclear ,power ,industries 7or a successor document74 7#d7 ,director ,the term ,director means the ,director of the ,loan ,programs ,office4 7#e7 ,expected payment amount ,the term expected payment amount means the amount that the ,director expects to pay to the ,federal ,financing ,bank under subsection 7d77#b77;,b7 when a qualifying project is placed in service4 7#f7 ,guarantee ,the term guarantee has the meaning given the term in section #agja of the ,energy ,policy ,act of #bjje 7#db ,u4,s4,c4 #afeaa74 7#g7 ,loan ,programs ,office ,the term ,loan ,programs ,office means the ,loan ,programs ,office of the ,department of ,energy4 7#h7 ,overrun ,the term overrun1 with respect to the costs of a qualifying project1 means any costs in excess of the point base estimate of the ,class #b estimate approved as described in paragraph 7#aa77;,c77iv74 7#i7 ,point base estimate ,the term point base estimate1 with respect to a ,class #b estimate1 means the value of the ,class #b estimate without adjustment for the accuracy range or contingency4 7#aj7 ,project delivery plan ,the term project delivery plan means a project plan that includes-- 7,a7 a project execution plan 7as defined in ,recommended ,practice #aj,s-#ij of the ,association for the ,advancement of ,cost ,engineering entitled ,cost ,engineering ,terminology 7or a successor document772 7,b7 a contract risk allocation strategy that-- 7i7 aligns cost and risk incentives among all contracted stakeholders2 and 7ii7 follows-- 7,i7 the best practices described in ,recommended ,practice #fg,r-#aa of the ,association for the ,advancement of ,cost ,engineering entitled ,contract ,risk ,allocation--,as ,applied in ,engineering1 ,procurement1 and ,construction 7or a successor document72 or 7,,ii7 other appropriate industry best practices1 as determined by the ,secretary2 and 7,c7 a plan for the division of responsibility between contracted stakeholders that describes roles and responsibilities for execution of that project plan4 7#aa7 ,qualifying project ,the term qualifying project means an advanced nuclear energy project-- 7,a7 that is reasonably expected to be constructed on time and on budget2 7,b7 that has an expected cost equal to or greater than #b1ejj1jjj1jjj1 according to the ,class #b estimate for that advanced nuclear energy project2 and 7,c7 with respect to which-- 7i7 the loan amount expected to be guaranteed under section #agjc or #agjf of the ,energy ,policy ,act of #bjje 7#db ,u4,s4,c4 #afeac1 #afeag7 is-- 7,i7 loaned through the ,federal ,financing ,bank2 and 7,,ii7 equal to or greater than #b1jjj1jjj1jjj2 7ii7 the borrower of that amount-- 7,i7 has established and submitted to the ,director a project delivery plan2 7,,ii7 has established and submitted to the ,secretary-- 7aa7 a ,class #b estimate with-- 7,,aa7 basis of estimate documentation for that ,class #b estimate2 and 7,,bb7 a qualifying project cost risk analysis2 7bb7 a resource-loaded integrated project schedule with-- 7,,aa7 basis of estimate documentation for that resource-loaded integrated project schedule2 and 7,,bb7 a qualifying project schedule risk analysis2 and 7cc7 a labor survey analysis report with-- 7,,aa7 basis of estimate documentation for that labor survey analysis report2 and 7,,bb7 a labor risk analysis2 and 7,,iii7 has established procedures with the ,secretary to ensure enhanced project oversight1 including-- 7aa7 a rolling forecast that-- 7,,aa7 updates the resource-loaded integrated project schedule not less frequently than annually1 in alignment with the approved changes in the applicable change management program2 and 7,,bb7 includes a new qualifying project schedule risk analysis to match the most recent update2 and 7bb7 a quarterly meeting between the ,secretary1 the ,director1 and senior-level representatives of all contracted stakeholders in the project to review progress and1 if necessary1 decide corrective actions and responsibilities for implementation2 7iii7 the ,director has approved the project delivery plan submitted under clause 7ii77,i7 prior to financial close2 and 7iv7 the ,secretary has approved the project planning documents submitted under clause 7ii77,,ii7 prior to financial close4 7#ab7 ,qualifying project cost risk analysis ,the term qualifying project cost risk analysis means a cost risk analysis that follows-- 7,a7 the best practices described in the document of the ,government ,accountability ,office entitled ,cost ,estimating and ,assessment ,guide3 ,best ,practices for ,developing and ,managing ,program ,costs1 numbered ,,gao-#bj-aie;,g1 and dated ,march #bjbj 7or a successor document72 or 7,b7 other appropriate industry best practices1 as determined by the ,secretary4 7#ac7 ,qualifying project schedule risk analysis ,the term qualifying project schedule risk analysis means a schedule risk analysis that follows-- 7,a7 the document of the ,government ,accountability ,office entitled ,schedule ,assessment ,guide3 ,best ,practices for ,project ,schedules1 numbered ,,gao-#af-hi;,g1 and dated ,december #bjae 7or a successor document72 or 7,b7 other appropriate industry best practices1 as determined by the ,secretary4 7#ad7 ,resource-loaded integrated project schedule ,the term resource-loaded integrated project schedule means an approved schedule that follows-- 7,a7 the best practices described in the document of the ,government ,accountability ,office entitled ,schedule ,assessment ,guide3 ,best ,practices for ,project ,schedules1 numbered ,,gao-#af-hi;,g1 and dated ,december #bjae 7or a successor document72 or 7,b7 other appropriate industry best practices1 as determined by the ,secretary4 7#ae7 ,rolling forecast ,the term rolling forecast means a process for regularly updating a resource-loaded integrated project schedule4 7#af7 ,secretary ,the term ,secretary means the ,secretary of ,energy1 acting through the ,director of the ,office of ,clean ,energy ,demonstrations of the ,department of ,energy4 7c7 ,new ,nuclear ,investment ,accelerator ,program ,account 7#a7 ,establishment ,there is established in the ,loan ,programs ,office an account1 to be known as the ,new ,nuclear ,investment ,accelerator ,program ,account4 7#b7 ,management ,the account shall be managed by the ,director4 7#c7 ,initial financing ,the following amounts shall be transferred to the account on the date of enactment of this ,act3 7,a7 ,of the unobligated balances of amounts previously made available under the heading ,nuclear ,energy under the heading ,energy ,programs under the heading ,department of ,energy in division ,j of the ,infrastructure ,investment and ,jobs ,act 7,public ,law #aag-eh2 #ace ,stat4 #acgc71 #a1ajj1jjj1jjj4 7,b7 ,of the unobligated balance of amounts previously made available under section #ejadd7;a7 of ,public ,law #aag-afi 7#acf ,stat4 #bjdd71 #b1ejj1jjj1jjj4 7#d7 ,availability of amounts ,amounts transferred to the account under paragraph 7#c7 or otherwise deposited in the account shall remain available until expended4 7#e7 ,use of amounts ,the ,director may use amounts in the account to make payments pursuant to subsection 7d77#b77;,b74 7#f7 ,obligation of amounts ,amounts in the account shall be-- 7,a7 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 close1 subject to the conditions that-- 7i7 the borrower shall be considered current so long as the borrower continues to make progress in good faith toward satisfying the requirements agreed upon in the conditional commitment1 as determined by the ,secretary2 and 7ii7 if the ,secretary determines that the borrower is not making progress in good faith as described in clause 7i71 the contingently obligated amounts shall be made available to other borrowers2 and 7,b7 obligated to the applicable borrower at financial close4 7#g7 ,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 7d77#b77;,b74 7d7 ,overrun liability 7#a7 ,borrower liability for initial cost overruns ,with respect to a qualifying project for which a guarantee is provided under section #agjc or #agjf of the ,energy ,policy ,act of #bjje 7#db ,u4,s4,c4 #afeac1 #afeag71 the borrower on the guaranteed loan shall be responsible for all overruns until the cumulative expenses of the qualifying project exceed #abj percent of the point base estimate of the ,class #b estimate4 7#b7 ,payment by the ,director 7,a7 ,expected payment amount ,with respect to a qualifying project for which a guarantee is provided under section #agjc or #agjf of the ,energy ,policy ,act of #bjje 7#db ,u4,s4,c4 #afeac1 #afeag71 the ,director shall update the expected payment amount quarterly1 subject to the conditions that-- 7i7 cumulative expenses of the qualifying project have exceeded #abj percent of the point base estimate of the ,class #b estimate2 7ii7 the quarterly increase to the expected payment amount does not exceed #ej percent of total expenses in that quarter for the qualifying project2 7iii7 the updated expected payment amount does not exceed the maximum payment amount described in subparagraph 7,b77ii72 7iv7 the applicable guaranteed loan is not in default2 7v7 the prospect of increasing the payment amount does not incentivize unnecessary spending2 and 7vi7 any increases to the payment amount are made in accordance with good governance principles4 7,b7 ,payment 7i7 ,in general ,when a qualifying project is placed in service1 the ,director shall-- 7,i7 determine the final payment amount based on-- 7aa7 the expected payment amount determined under subparagraph 7,a72 and 7bb7 any additional cumulative expenses of the applicable qualifying project1 determined in accordance with that subparagraph2 and 7,,ii7 pay that final payment amount to the ,federal ,financing ,bank 7as the lender of the applicable guaranteed loan7 from the account4 7ii7 ,maximum payment amount ,the maximum payment amount under this subparagraph for any #a qualifying project may not exceed #a1bjj1jjj1jjj4 7iii7 ,application of payment ,a payment under this subparagraph shall be applied to the principal amount of the applicable guaranteed loan4 7iv7 ,requirement ,the ,director may make a payment under this subparagraph only if the applicable guaranteed loan is not in default4 7,c7 ,tax treatment of payments ,for purposes of the ,internal ,revenue ,code of #aihf-- 7i7 no amount shall be included in the gross income of the borrower described in paragraph 7#a7 by reason of any payment under subparagraph 7,b71 and 7ii7 in the case of any such borrower that is a partnership or ,s corporation1 any amount excluded from income by reason of clause 7i7 shall be treated as tax exempt income for purposes of section #gje and #acff of the ,internal ,revenue ,code of #aihf4 7e7 ,enhanced financing terms for qualifying projects 7#a7 ,in general ,notwithstanding title ,,xvii of the ,energy ,policy ,act of #bjje 7#db ,u4,s4,c4 #afeaa et seq47 or any other provision of law1 the ,director shall offer the enhanced financing terms described in paragraph 7#b7 for a guarantee provided under section #agjc or #agjf of that ,act 7#db ,u4,s4,c4 #afeac1 #afeag7 with respect to a qualifying project4 7#b7 ,enhanced financing terms described ,the enhanced financing terms referred to in paragraph 7#a7 are the following3 7,a7 ,notwithstanding section #agjb7;c7 of the ,energy ,policy ,act of #bjje 7#db ,u4,s4,c4 #afeab7;c771 a guarantee may be an amount up to #bjj percent of the point base estimate of the ,class #b estimate approved as described in subsection 7a77#aj77;,c77iv7 for the qualifying project that is the subject of the guarantee4 7,b7 ,the ,director shall seek a commitment from the ,federal ,financing ,bank 7as lender of a guaranteed loan7 to amend or restructure1 if appropriate1 the applicable guaranteed loan to reflect the revised principal amount after payment under subsection 7d77#b77;,b74 7#c7 ,investment tax credit 7,a7 ,public utility property ,section #ej7;d77#b7 of the ,internal ,revenue ,code of #aihf is amended-- 7i7 by redesignating subparagraphs 7,a71 7,b71 and 7,c7 as clauses 7i71 7ii71 and 7ii71 respectively1 and by moving such clauses #b ems to the right1 7ii7 by striking ,section #df7;f7 and inserting the following3 7,a7 ,section #df7;f7 1 7iii7 by striking ,at the election of the taxpayer and inserting the following3 7,b7 ,at the election of the taxpayer 1 7iv7 by striking election under this paragraph each place it appears and inserting election under this subparagraph1 and 7v7 by adding at the end the following new subparagraph3 7,c7 ,at the election of the taxpayer1 this paragraph shall not apply to any qualified project 7as defined in section #b7;b7 of the ,,arc ,act of #bjbd74 ,rules similar to the rules of clauses 7i7 and 7ii7 of subparagraph 7,b7 shall apply for purposes of an election under this subparagraph4 4 7,b7 ,effective date ,the amendments made by this paragraph shall apply to taxable years beginning after the date of the enactment of this ,act4 7f7 ,submission of meeting minutes to ,congress ,not later than #g days after each quarterly meeting described in subsection 7b77#aa77;,b77ii77,,iii77bb71 the meeting minutes1 which have been approved by the contracted stakeholders in the applicable qualifying project1 shall be submitted by the ,secretary to-- 7#a7 the ,committee on ,energy and ,natural ,resources and the ,committee on ,appropriations of the ,senate2 and 7#b7 the ,committee on ,energy and ,commerce and the ,committee on ,appropriations of the ,house of ,representatives4 #c4 ,other related provisions 7a7 ,exception to denial of double benefit provision for certain utilities and military installations ,section #ejada7;d77#c7 of ,public ,law #aag-afi 7#acf ,stat4 #bjdc7 is amended-- 7#a7 in subparagraph 7,c71 by striking or at the end2 7#b7 in subparagraph 7,d71 by striking the period at the end and inserting 2 or2 and 7#c7 by adding at the end the following3 7,e7 projects partnering with-- 7i7 a ,federal power marketing administration or the ,tennessee ,valley ,authority2 7ii7 an entity that procures energy for a military installation 7as defined in section #bhja7;c7 of title #aj1 ,united ,states ,code7 that is managed by the ,secretary of ,defense or a contractor of the ,secretary of ,defense2 or 7iii7 the ,general ,services ,administration for the purpose of energy procurement4 4 7b7 ,allowing ,government facilities as brownfield sites ,section #de7;b77#aa77;,b77i7 of the ,internal ,revenue ,code of #aihf is amended by striking 7,b71 and and inserting 7,b7 7excluding clauses 7ii7 and 7vii71 and clause 7i7 to the extent that clause 7i7 applies to a facility described in clause 7ii7 or 7vii71 of that subparagraph71 and4