On September 30, the Department of Energy (DOE) issued a new draft solicitation which, if finalized, would make up to $12.6 billion in loan guarantees available for an expanded list of advanced nuclear energy projects through the agency’s Title 17 Loan Guarantee Program. DOE has already issued $6.1 billion in loan guarantees for the troubled Vogtle nuclear generation project under a much narrower 2008 nuclear solicitation in the same program.

The nuclear industry has been plagued by high costs, construction delays, and technical problems since its inception. That trend has continued with the construction of two nuclear reactors at Plant Vogtle in Burke County, Georgia by Georgia Power Company and its partners. So far, the project is at least 21 months behind schedule and $1.2 billion over-budget. Such problems and other project concerns caused each of the Vogtle co-owners to have their credit rating downgraded. Yet, DOE has finalized loan guarantees for two of the partners on generous terms and conditionally committed more to the third. The department’s support for the Vogtle project and the history of the nuclear industry in general prompts considerable concern about DOE’s new nuclear solicitation.

While any project that meets solicitation requirements may apply, DOE is targeting four key areas of particular concern: (1) advanced nuclear reactors; (2) small modular reactors; (3) upgrades and uprates at existing facilities; and (4) front-end nuclear projects.

TCS has already raised red flags on taxpayer subsidies for the development of small modular reactors, making DOE the 2013 Golden Fleece Award recipient for providing millions in subsidies to the flawed technology.

Technology recipient concerns aside, a recent Government Accountability Office report echoed larger concerns finding that the DOE has “not fully developed or consistently adhered to loan monitoring policies” for the Loan Guarantee Program, casting serious doubt on its ability to effectively evaluate loan guarantee applicants and separate the bad apples from the good.

DOE will accept public comments on the draft solicitation until November 3rd.