New WA ‘targeted’ tax break law could add 200+ nuclear fuel jobs in Richland

Framatome Inc. is considering expanding its nuclear fuel production capabilities in Richland in two phases for a total investment of more than $360 million.

The first would cost $39 million and the second $335 million, according to property tax waivers worth more than $6 million approved Tuesday by the Richland City Council.

The dual requests were on the council’s consent agenda, released shortly before the long New Year’s weekend. The council voted on the full agenda of items, including those requests, without any discussion or comments.

Framatome is among the first to take advantage of the city’s new Targeted Urban Area (TUA) zone, a state program that awards property tax waivers to manufacturers whose projects generate new jobs.

The waivers can be extended to up to 10 years and shave millions off a company’s property tax bill

In Phase 1, the French company would invest in a nearly 16,000-square-foot facility that will generate 20 new family-wage jobs with benefits.

During Phase 2, it will invest $335 million in a 189,000-square-foot building that will add 200 jobs.

The additions would be built at Framatome’s current 155-acre property on Horn Rapids Road although no timeline has been given.

Framatome has produced nuclear reactor fuel in Richland for more than half a century and employs nearly 600. It supplies fuel to commercial pressurized water and boiling water reactors worldwide.

Three years ago the company opened a $20 million facility in Richland to recover scrap uranium that has picked up contaminants in the nuclear fuel fabrication process.

First in Washington

Framatome’s site is within the TUA Richland established in early 2023 after the Washington Legislature created the breaks-for-jobs program.

Lawmakers believe it is necessary to offer tax breaks to attract “essential” new jobs in key industries, including clean energy and aerospace.

Richland is reportedly the first city in Washington to deploy a TUA in support of the state’s goal of expanding manufacturing.

It is not guaranteed that Framatome and will actually build in Richland.

The TUA rules require construction to begin within five years, which may not be feasible for facilities regulated by the Nuclear Regulatory Commission.

Richland has said securing additional time is a top legislative priority for the 2024 session, which begins Jan. 8.

It noted that Framatome and its partner, Ultra Safe Nuclear Corp., will build in another state if they’re not given the additional time.

4th generation fuel

Framatome is partnering with Ultra Safe on a joint venture to manufacture commercial quantities of fourth generation reactor fuel for advanced reactor designs.

It would include fuel for the Micro-Modular Reactor, which is being licensed in Canada and the United States. It is expected to be the first commercially available “nuclear battery.”

Karl Dye, president of the Tri-City Development Council, told the Richland council Framatome is a good corporate citizen and said its plans will help the Tri-Cities transform into global center for advanced nuclear fuel facilities.

2024 Legislature

Washington Rep. Stephanie Barnard, R-Pasco, who created the Nuclear Energy Caucus in 2023, began working to extend the TUA time period a year ago. She pre-filed House Bill 2120 on Wednesday, one of three nuclear bills she is sponsoring.

In December, Barnard pre-filed House Bill 1981, which would award preferential business and occupation tax rates to nuclear energy manufacturers such as Framatome. Rep. April Connors, R-Kennewick, is a co-sponsor.

She also filed HB 1908, The GRID Act, which promotes clean energy production and storage projects.

Barnard said tax breaks are the cost of boosting the state’s economy.

“Lost revenue from these types of tax incentives pale in comparison to the economic development, new jobs and increased tax base that will open the door to prosperity for the entire state. If we want to be intentional in developing a clean energy future for Washington and the world, this is how it’s done,” she told the Tri-City Herald.

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