Reforms to the Nuclear Production Tax Credit (PTC) approved by the House on Tuesday would ensure that ratepayers to both for-profit and nonprofit public-private partnerships could realize savings under the credit.
Established under the Energy Policy Act of 2005 to spur investment in nuclear energy through public-private partnerships, PTC currently only provides savings to ratepayers to for-profit partnerships and not to nonprofit partnerships.
U.S. Rep. Tom Rice (R-SC) introduced H.R. 1551 to address the disparity, and the measure was approved on Tuesday with support from U.S. Rep. Kevin Brady (R-TX).
“Investment in nuclear energy is critical to energy independence, national security and job creation in America,” said Rice, a member of the Ways and Means Committee. “States like South Carolina recognized the importance of this investment and are leading the way in developing advanced nuclear power facilities, but ambiguities in current law are posing a risk to their full success. Passage of this bill gives these cutting-edge facilities certainty in their investment while creating parity so savings can be passed onto consumers in South Carolina and across the country.”
Rice’s bill would impact four new nuclear power plants that are being developed through nonprofit, public-private partnerships in South Carolina and Georgia. The projects are expected to create tens of thousands of jobs and to reduce carbon dioxide emissions.
Brady, the chairman of the House Ways and Means Committee, said the bill would address an urgent problem that poses a threat to U.S. energy security and, by extension, national security.
“As a result of an uncertainty with respect to the nuclear production tax credit, there is a risk of construction grinding to a halt on several cutting-edge nuclear power plants in our country….” Brady said. “Nuclear power is critical to an all-of-the-above strategy for American energy independence and national security. It is urgent that we take action to solve this issue in our tax code.”