WASHINGTON, D.C.—In a fiscal 2010 supplemental spending request, the Obama Administration today proposed an increase of $9 billion in federal loan guarantees available for companies building new nuclear power plants. The increased loan volume would be derived by accelerating access to a portion of the $36 billion requested by the Obama Administration in its fiscal 2011 budget. Following is a statement from Alex Flint, the Nuclear Energy Institute’s senior vice president of governmental affairs.
“NEI congratulates the Administration for recognizing the benefit of increasing the loan guarantee volume to accelerate development of the new nuclear energy facilities that our nation needs. It also will act as an economic multiplier by creating thousands of high-paying jobs during construction and from 400 to 800 permanent jobs once these plants begin operation.
“The supplemental appropriation will ensure adequate loan volume for the Department of Energy to provide a financial backstop for additional nuclear energy projects under the clean energy loan guarantee program authorized by Congress in 2005. The loan guarantees will allow the sponsors of these important projects to access debt financing at reduced interest rates that ultimately will lower the overall cost of electricity to the consumer.
“The loan guarantee program for nuclear plants is financed by the nuclear industry at no cost to the American taxpayer.
“We encourage both houses of Congress to act expeditiously to pass this appropriation. Construction of these new nuclear plants will enable the nation to meet rising electricity demand and challenging environmental goals.”