The plan to restart the shuttered reactor on Three Mile Island has already generated controversy as energy experts debate the merits of providing separate federal subsidies for the project in the form of tax credits. Constellation’s pursuit of the $1.6 billion federal loan guarantee, which has not been previously disclosed, is likely to intensify that debate. The loan guarantee request has cleared an initial review. It has now reached the stage where the specific terms of a deal would ordinarily start to be negotiated, according to the Washington Post. A loan guarantee would allow Constellation to shift much of the risk of reopening Three Mile Island to taxpayers. The federal government, in this case, would pledge to cover up to $1.6 billion if there is a default. The guarantees are typically used by developers to lower the cost of project financing, as lenders are willing to offer more favorable terms when there is federal backing.