Illustration: Rebecca Zisser / Axios
Energy Secretary Chris Wright told lawmakers on Tuesday he supports keeping the Loan Programs Office open for business for nuclear power.
Why it matters: The House GOP's reconciliation budget proposes to eliminate unused IRA loan funding, though the DOE's budget proposal includes funding to keep the loan office open.
- "I do think it's a helpful tool to launch nuclear energy, which is why we're requesting money to do just that," Wright told the House Energy and Commerce Committee.
- Wright also told an audience on Monday that he's working with Congress to maintain a level of funding for LPO for transmission projects.
What they're saying: Rep. Bob Latta, chair of E&C's energy subcommittee, agreed with Wright's assessment of LPO.
- "This level of government subsidy is irresponsible and unsustainable, focused on misguided priorities and was often done to the detriment of free markets and private enterprise," Latta said.
Between the lines: Wright's vision for LPO will likely be diminished compared with the Biden administration's dramatic expansion.
- In fact, former President Biden's flurry of post-Election Day loan approvals are coming under scrutiny, Wright said.
- The agency's review of the DOE awards had uncovered "deeply concerning" decisions that were made "without proper due diligence," Wright said.
Friction point: Some Democrats pressed Wright to tell Republicans to pull back proposed cuts in the reconciliation bill.
- "It looks like you and I agree on at least one issue, and that is that nuclear energy is worth investing in and that the Loan Programs Office has an important role to play," E&C ranking Democrat Frank Pallone said.
- Pallone cited South Carolina's Republican Gov. Henry McMaster's letter to lawmakers that the DOE loan authority and nuclear tax credits are essential to restarting a nuclear plant there.
What's next: Speaker Mike Johnson and House Appropriations Chair Tom Cole met with the subcommittee chairs last week about spending priorities.
- Energy/water Chair Chuck Fleischmann has said he supports reprogramming some loan funding but is open to support for a wide range of energy resources and transmission lines.
