ARC Act of 2024

This bill creates a program within the Department of Energy's Loan Programs Office to provide cost-overrun protection and enhanced financing terms for large advanced nuclear energy projects that receive federal loan guarantees. It establishes a dedicated account, funded by transferring existing appropriations, to pay the Federal Financing Bank for certain cost overruns after a project exceeds 120% of its base cost estimate. The bill also modifies tax rules for certain utilities and military installations and allows government-owned brownfield sites to qualify for a tax credit.

Sec. 2, New Nuclear Investment Accelerator Program: This section creates a New Nuclear Investment Accelerator Program Account in the Loan Programs Office, funded by $1.1 billion from the Infrastructure Investment and Jobs Act and $2.5 billion from Public Law 117-169. The Director can use the account to pay the Federal Financing Bank for cost overruns on qualifying projects (advanced nuclear projects costing at least $2.5 billion with a guaranteed loan of at least $2 billion). The borrower is responsible for all overruns until costs exceed 120% of the base estimate. After that, the Director may make quarterly payments up to 50% of that quarter's expenses, with a maximum total payment of $1.2 billion per project. The Director must offer enhanced financing terms, including guarantees up to 200% of the base cost estimate. The section also amends the Internal Revenue Code to allow an election for certain qualified projects to avoid a rule that reduces the investment tax credit for public utility property.

Sec. 3, Other Related Provisions: This section amends the denial of double benefit provision in Public Law 117-169 to allow exceptions for projects partnering with a Federal power marketing administration, the Tennessee Valley Authority, an entity procuring energy for a military installation, or the General Services Administration. It also amends the Internal Revenue Code to allow government facilities (excluding certain types) to be treated as brownfield sites for the purpose of the tax credit under section 45(b)(11)(B)(i).