A federal funding backstop may be the nuclear industry's next request in D.C., Jael has learned.

Why it matters: Nuclear energy's had a great few years in Congress and at the executive branch. But announcements of new plants have remained elusive.

Driving the news: The Nuclear Energy Institute is in the "final stages" of getting members on board with a fresh request to the Biden administration for federal financing and "cost overrun insurance," the group's CEO, Maria Korsnick, told Jael.

• Korsnick hopes this leads to an investment package attractive enough to spur builds.
• She said getting more projects in the works will be crucial to defending nuclear's wins in the IRA, should repeal-ready policymakers win greater control in Congress.
• "It makes it real," Korsnick said. "It's not just a tax credit on a piece of paper. It's a thing in my community that I'm going to see."

Maria and Jael chatted over lunch at Tosca. Here's an abridged transcript …

Clay Sell from X-energy recently told us he doesn't think there's anything left for D.C. to do. I'm wondering, is there anything left?

I think there is a public-private partnership opportunity … to have [these] two phases: Have some risk buydown, so think of [some] sort of grant money, some sharing between the company and the government, and a separate cost overrun insurance.

Who would handle the cost-sharing insurance? DOE?

Could be DOE. Could be Loan Program Office.… And we could design it as, you know, you as a company go this far, you pay for the first 25% to 50% and then something kicks in. It could be something like that.

If you could imagine having a package where if you're a state commission and I have this great idea, and I'm saying it's going to be good for your people, it's going to be good for jobs, and you say "What if it goes a little long?"

[This] relieves all this stress about you having it on your shoulders for having to make the decision, because if it goes off the rails, then it's on your shoulders. "Why did you approve it?"

Once you exercise this muscle and you start doing this build, you're going to create enough data points that I think the private sector, to Clay's point, I think they are ready to jump in.

Have you been talking to the administration about this idea?

We've been beginning to socialize it, but the first thing we need to do is get our members aligned, so we're in the final phase of that.

What is the question you get most often from people about nuclear energy?

When are you going to start building?

Maria and Jael weren't done eating Tosca's delicious tagliatelle, so they kept talking.

• Here's what else we learned (besides how great their fresh fish is) …

🤖 AI's nuclear impacts: Korsnick said the No. 1 thing she contemplates around AI is the total energy use from the nascent technology.

"Right now our view of AI is simply it's power hungry," she said. "How is nuclear going to use the benefits of AI? I don't think nuclear's that different from any other company, honestly. You're going to find stuff to do more efficiently.

"But the immediate effect of AI right now is: Who is going to come up with the power to power it? To create it?"

💨 H2 next steps: She also is "optimistic" the administration will eventually be flexible enough on the IRA hydrogen tax credit that existing nuclear plants can be used at qualifying H2 production sites.

"We've had a lot of conversations with John Podesta. I want to say that he appreciates the arguments. We'll have to obviously see where he lands.

"It's an election year, so it's hard to say. Election years, people are really trying to stake out their ground. So perhaps that might complicate things. But at the end of the day, you know, hey, we're looking for a fair shake."

Simmering concern on the Hill about implementation of the IRA's advanced manufacturing incentive could turn into a real legislative push — but not immediately, Nick writes.

Why it matters: Sen. Sherrod Brown wants to block companies associated with "foreign entities of concern" — namely China — from getting the 45X credit, as we wrote yesterday.

• It's the kind of policy we could see a lame duck or future Republican Congress pursue in lieu of full IRA repeal.

Zoom in: From a hallway chat with Brown and his staff yesterday, it doesn't sound as if he has his own legislation ready for prime time yet.

• "We want these companies that are getting tax incentives to actually produce here, not just assemble here, not just import from 12 countries and get a tax break when they do the assembly here," Brown told reporters.
• Sen. Marco Rubio and Rep. Carol Miller floated a GOP bill in December that would disqualify companies who have 10% or more of their equity interests controlled by a foreign adversary.
• It also includes broad language that would block companies "directly or indirectly controlled, directed, or materially influenced" by foreign adversaries from getting the 45X credit.

The bottom line: This 45X maneuvering is worth your attention, especially considering the Hill hubbub about China lately (see: the TikTok bill).

⚡️ 1. Easy enhancement: Sens. Peter Welch and Angus King introduced a bill that aims to boost grid enhancing technologies. It would reimburse developers for the costs of GETs.

🗣️ 2. Members only: Freshman Rep. John James is joining Energy and Commerce.

• "Southeast Michigan is the epicenter of the American automotive, supply chain, research and development, and advanced manufacturing industries, and it is essential that we have representation on the Energy and Commerce Committee," he said in a statement.

🦞 3. Better down where it's wetter: House Republicans have a new bill to support deep-sea mining.