The Nuclear Energy Institute said the nuclear provisions would promote job creation and reduce pollution if passed. "This legislation will help unlock investment needed to stimulate construction of carbon-free nuclear power plants," Nuclear Energy Institute President Marvin Fertel said in a statement. The nuclear provisions of the bill enjoy broad support, Fertel said.

The bill proposed by Senators John Kerry, a Massachusetts Democrat, and Joe Lieberman, a Connecticut Independent, would triple the amount of federal loan guarantees available for new nuclear power plants, eliminate a mandatory hearing for license applicants, and require the US Nuclear Regulatory Commission to prepare a plan to expedite the licensing process for new reactors.

The prospects of passing the bill, which has not been introduced, are uncertain.

A Washington energy lobbyist said Wednesday the nuclear industry should be pleased with the bill, although the legislation has "very, very slim" chances of passing. The lobbyist, who spoke on condition of anonymity because he was not authorized to discuss the bill publicly, said, "[i]t's pretty much everything the industry could have wanted and more."

The one thing absent from the bill is incentives for front-end nuclear projects such as enrichment plants, the lobbyist said. "Otherwise, it's the entire Christmas tree."

In the licensing area, the bill reflects many priorities NEI outlined in an October 2009 policy paper. The bill would remove the requirement that NRC hold a public hearing on non-contested issues prior to granting a combined construction permit-operating license for nuclear power plants.

The proposed legislation includes an increase in the amount available for nuclear power loan guarantees to $54 billion, from the current $18.5 billion. The Obama administration has said it wants the added money to spur a new generation of nuclear units. NEI says the $54 billion could be enough for 10 reactors.

The legislation includes a "tremendous" number of incentives for nuclear utilities like NRG Energy, Chairman David Crane said Wednesday at a Deutsche Bank conference in Washington. Passing the bill in an election year is "certainly going to be a challenge," he said.

NRG plans to build two new nuclear units at the South Texas Project station and is seeking a loan guarantee for the expansion.

Anti-nuclear and environmental groups said they oppose the bill. The bill features "taxpayer giveaways to giant nuclear and other energy corporations wrapped in the guise of doing something about our climate crisis," said Michael Mariotte, executive director of the Nuclear Information and Resource Service.

The legislation would also require that within 90 days of passage, NRC provide recommendations of ways to expedite the review of licenses, according to a bill summary.

NRC spokesman Scott Burnell said the agency has been reviewing ways of speeding up the licensing process after the initial applications for new plants are approved. NRC expects subsequent applications to "go more smoothly," he said.

The bill would expand an existing insurance program providing payments of up to $500 million to reactor projects that face regulatory delays to 12 units from six. The proposed legislation also would provide an investment tax credit of 10% on certain expenditures on nuclear facilities.

In addition, the bill would allow public power companies or cooperatives to receive grants in lieu of tax credits or sell production credits to private partners in the project.

--William Freebairn, william_freebairn@platts.com