en by the size, complexity, and duration of the con-
struction, is the principal economic driver. The larg-
est U.S. generator of nuclear energy, Exelon (owner
of Three Mile Island), did not construct any nuclear
plants. They instead purchased them after they were
in operation, at which point the risks associated with
unknowns related to capital costs and financing were
retired. The Nuclear Energy Policy CRS report noted the
decreased likelihood that additional nuclear capacity
would be built in the United States without federal
support (Holt 2010, 6). Also as noted, an excerpt from
the Economic Report of the President justifies such sup-
port for clean energy sources, which is restated here
for emphasis:
Market rewards for switching to clean energy produc-
tion are lower than the societywide benefits, market
costs of switching to clean energy consumption are
higher than the societywide costs, and markets alone
provide less clean energy than is optimal (Obama
2011b, 127).The Energy Policy Act of 2005 addresses many
of the associated economic issues, and its provisions
should be sustained, both in authorities and appro-
priations. The scale of potential loan guarantees far
surpasses those currently provided for by legislation.
Sustainability of a larger scale loan guarantee program
is greatly dependent on reversing the causes of loan
defaults as seen previously in the United States. The
CES addresses the remaining key economic consid-
eration: a weighted economic disincentive for energy
production that increases GHG levels in the environ-
ment.