Framatome and an unnamed nuclear fuel developer are one step closer to securing millions in property tax breaks thanks to the 2025 Washington Legislature.
Rep. Stephanie Barnard, R-Pasco, is optimistic her bill updating tax incentive program to accommodate nuclear-focused companies will succeed in the current 105-day session. A similar bill failed in 2024.
Rep. Stephanie Barnard, R-Pasco, is sponsoring a bill updating a tax incentive program to accommodate nuclear-focused companies.
Her bill to expand the Targeted Urban Area program passed out of the House Finance committee on Feb. 6.
The 11-3 vote sends it to a vote of the full House with a recommendation it pass. It was approved on an 11-3 bipartisan vote, with eight Democrats and two Republicans supporting the bill and three Republicans opposing it.
The bill now goes to the Senate, where Barnard said it has support despite concerns raised by Associated General Contractors around labor requirements, as well as opposition from nuclear energy opponents who say the danger outweighs the benefit.
“It’s a go,” she said.
Richland is unique
Richland is uniquely positioned to benefit from extending the time companies may take to qualify for TUA tax incentives.
Pushing for a change is a city priority. It took on added urgency in 2025 after the city added a lucrative project worth billions to its economic development win column.
Tax breaks could help push it across the finish line.
Framatome and its partner, Ultra Safe Nuclear Fuels Corp., are considering a $360 million expansion of Framatome’s Richland nuclear fuel plant to produce fuel for the next generation of modular reactors.
Richland is the lone city to create a development zone and cut deals with businesses interested in siting facilities in it. With the newest addition to its list, it has four businesses representing nearly $5 billion in investment on the line.
Roughly $3.5 billion of that is at risk if House Bill 1210 fails again. For comparison’s sake, the 2024 Hanford cleanup budget was about $3 billion.
Need more time
Barnard’s bill would give nuclear fuel companies such as Framatome and the unnamed modular fuel manufacturer added time to secure federal regulatory approvals.
The existing law gives only five years, which local leaders maintain isn’t enough to complete the federal review process by the Nuclear Regulatory Commission.
Without an extension, its development candidates could miss out on 10-year property tax breaks and choose to take their plans out of Washington.
The 2025 Washington Legislature is considering a bill to make it easier for nuclear fuel companies such as Framatome in Richland to qualify for property tax breaks.
The TUA program is modeled on tax breaks that helped attract investment in the aerospace industry and data centers.
Richland used it to negotiate development deals with clean energy manufacturers — part of its strategy to reduce its reliance on federal spending at the Hanford site.
It has three TUA deals on the books, waiving nearly $30 million in property taxes for future development.
The city council voted to waive:
The unnamed company considering Richland — and other communities — is the potential fourth addition to the TUA roster. It contemplates a $3 billion investment with 1,000 jobs.
Economic development wins
Local officials implored lawmakers to embed breathing room and support Richland’s clean energy ambitions.
“We’re asking for more time,” Joe Schiessl, Richland’s deputy city manager, told lawmakers. He credited the TUA program for the city’s most recent economic development wins:
ATI is investing $110 million to expand in north Richland, with the payoff of 93 new jobs.
Atlas Agro wants to build a $1.3 billion fertilizer plant with 158 jobs.
Framatome’s $375 million expansion would add 220 jobs to the 550 already working in Richland.
Framatome and its partner, Ultra Safe Nuclear Fuels Corp., have said they need the TUA rules amended in order to site the project in Richland.
Schiessl expressed gratitude to lawmakers who advanced the bill.
“The city is grateful that the House Finance Committee agrees that the TUA bill is good for Richland and the state,” he told the Tri-City Herald.
Diahann Howard, the Port of Benton’s executive director, told the House Committee that expanding the TUA program to accommodate the long lead times for nuclear fuel manufacturers aligns with the region’s clean energy goals.
Without it, she cautioned, projects and jobs could go elsewhere.