Short title

This Act may be cited as the

Nuclear Energy Innovation and Deployment Act of 2026

Department of Energy authorities for nuclear facilities

(a)

Amendments

(1)

Energy reorganization act of 1974

(A)

In general

Section 202 of the Energy Reorganization Act of 1974 (42 U.S.C. 5842) is amended—(i)by striking the section designation and heading and all that follows through Notwithstanding in the matter preceding paragraph (1) and inserting the following:

202.

Licensing and related regulatory functions respecting selected department of energy facilities

Notwithstanding

;

(ii)in the matter preceding paragraph (1), by striking Administration and inserting Department of Energy;(iii)by striking paragraphs (1) and (2);(iv)in paragraph (4), by striking Administration and inserting Department of Energy; and(v)by redesignating paragraphs (3) through (5) as paragraphs (1) through (3), respectively.(B)

Conforming amendments

(i)Section 3134 of division C of the Strom Thurmond National Defense Authorization Act for Fiscal Year 1999 is amended—(I)in subsection (b) (42 U.S.C. 5842 note; Public Law 105–261)—(aa)by striking (42 U.S.C. 7272) and inserting (50 U.S.C. 2513); and(bb)by striking section 202(5) and all that follows through the period at the end and inserting paragraph (3) of section 202 of the Energy Reorganization Act of 1974 (42 U.S.C. 5842).; and(II)in subsection (c) (42 U.S.C. 5842 note; Public Law 105–261), by striking section 202(5) and all that follows through subsection (a), and inserting paragraph (3) of section 202 of the Energy Reorganization Act of 1974 (42 U.S.C. 5842).(ii)Section 141(d) of the Nuclear Waste Policy Act of 1982 (42 U.S.C. 10161(d)) is amended, in the first sentence, by striking section 202(3) of the Energy Reorganization Act of 1974 (42 U.S.C. 5842(3)) and inserting paragraph (1) of section 202 of the Energy Reorganization Act of 1974 (42 U.S.C. 5842).(iii)Section 148(c) of the Nuclear Waste Policy Act of 1982 (42 U.S.C. 10168(c)) is amended, in the first sentence, by striking section 202(3) of the Energy Reorganization Act of 1974 (42 U.S.C. 5842(3)) and inserting paragraph (1) of section 202 of the Energy Reorganization Act of 1974 (42 U.S.C. 5842).(2)

Atomic Energy Act of 1954

Section 110 a. of the Atomic Energy Act of 1954 (42 U.S.C. 2140(a)) is amended—(A)by striking Commission; or (2) the construction and all that follows through ; or at the end of subsection a. and inserting the following: “Nuclear Regulatory Commission or the Department of Energy;

(2)the construction or operation of facilities, or the conduct of activities involving source material, byproduct material, or special nuclear material, under contract with and for the account of the Department of Energy at any location, including such facilities or activities sponsored by a person; or

;

(B)by striking a license for (1) the processing, and inserting the following: “a license for—

(1)the processing,

; and

(C)by adding at the end the following:

(3)the construction or operation of commercial facilities and related activities, including the construction and operation of nuclear fuel cycle facilities, involving source material, byproduct material, or special nuclear material authorized and regulated by the Department of Energy—(A)on Federal land; or(B)for Federal purposes, including for the purpose of the generation, sale, or delivery of electricity to a Federal power marketing agency (as defined in section 3 of the Federal Power Act (16 U.S.C. 796)); or

(3)

Energy Policy Act of 2005

Section 958(g) of the Energy Policy Act of 2005 (42 U.S.C. 16278(g)) is amended by striking the subsection designation and heading and all that follows through Any activity in paragraph (2) and inserting the following:

(g)

Financial protection

Any activity

(b)

Regulatory revision required

Not later than 1 year after the date of enactment of this Act, the Nuclear Regulatory Commission shall revise sections 30.12, 40.11, 50.11, and 70.11 of title 10, Code of Federal Regulations, and such other applicable regulations as may be identified by the Commission, to remove limitations on the statutory authority of the Secretary of Energy with respect to activities performed off of Federal Government-owned or Federal Government-controlled sites.(c)

Financial protection

Any activity carried out pursuant to this section or an amendment made by this section that is authorized and regulated by the Department of Energy and involves the risk of public liability shall be subject to the financial protection or indemnification requirements of section 170 d. of the Atomic Energy Act of 1954 (42 U.S.C. 2210(d)) (commonly known as the Price-Anderson Act).

Nuclear energy launch pad

Section 958 of the Energy Policy Act of 2005 (42 U.S.C. 16278) is amended—(1)by redesignating subsection (g) (as amended by section 2(a)(3)) as subsection (h); and(2)by inserting after subsection (f) the following:

(g)

Nuclear energy launch pad

(1)

Definitions

In this subsection:(A)

Advanced nuclear technology

The term advanced nuclear technology includes—(i)an advanced nuclear reactor; and(ii)a nuclear fuel cycle facility.(B)

Assistant Secretary

The term Assistant Secretary means the Assistant Secretary for Nuclear Energy.(C)

Eligible private entity

The term eligible private entity means a private entity that the Assistant Secretary determines has an adequately mature design for, sufficient financial resources and expertise in, and a high chance of success in testing or demonstrating the commercial feasibility of advanced nuclear technologies.(D)

Launch Pad

The term Launch Pad means the Nuclear Energy Launch Pad established by paragraph (2).(E)

Nuclear Energy Launch Pad Zone

The term Nuclear Energy Launch Pad Zone means a Nuclear Energy Launch Pad Zone designated by the Assistant Secretary under paragraph (3).(2)

Establishment

There is established within the Office of Nuclear Energy a program, to be known as the Nuclear Energy Launch Pad, as a component of the program under subsection (a).(3)

Nuclear energy launch pad zones

(A)

In general

In carrying out the Launch Pad, the Assistant Secretary shall identify and designate secure, authorized areas of Federal land, including land owned or controlled by the Department and National Laboratory sites as Nuclear Energy Launch Pad Zones for the purpose of testing and demonstrating the commercial feasibility of advanced nuclear technologies by eligible private entities under authorities of the Department, including nuclear fuel cycle facilities necessary to support the testing and demonstration of other advanced nuclear technologies, to enable access to streamlined licensing opportunities and facilitate transition to commercial operation under Nuclear Regulatory Commission authorities after testing and demonstration activities are complete.(B)

Additional pathways

In addition to Nuclear Energy Launch Pad Zones designated under subparagraph (A), the Assistant Secretary shall, in carrying out the Launch Pad, provide a pathway for testing and demonstrating the commercial feasibility of advanced nuclear technologies by eligible private entities under the authorities of the Department at non-Federal sites, which, on completion of the pathway, shall also be designated as Nuclear Energy Launch Pad Zones.(4)

Responsibilities and development activities

The Assistant Secretary shall ensure the success and acceleration of testing and demonstration projects within Nuclear Energy Launch Pad Zones by carrying out each of the following activities in Nuclear Energy Launch Pad Zones located on land owned or controlled by the Department and National Laboratory sites:(A)

Basic infrastructure

Providing to the extent practicable, basic access infrastructure to eligible private entities selected under paragraph (5)(A), including roads, electric power, water, and fiber optic communication connectivity.(B)

Land characterization

Carrying out land characterization and assessment activities through the program under subsection (a), as appropriate, necessary to facilitate accelerated deployment, including biological, cultural, and other environmental surveys required for the testing and demonstration of advanced nuclear technologies.(5)

Private entity solicitation and selection

(A)

Competitive process

(i)

In general

The Assistant Secretary, acting through the program under subsection (a), shall solicit and select eligible private entities for participation in the Launch Pad through an advertised, competitive process designed to select the most promising advanced nuclear technologies.(ii)

Initial solicitations

Not later than 180 days after the date of enactment of the Nuclear Energy Innovation and Deployment Act of 2026, the Assistant Secretary shall—(I)finalize the competitive process required under clause (i); and(II)begin soliciting eligible private entities pursuant to that clause.(B)

Agreements

(i)

In general

The Assistant Secretary shall seek to enter into flexible agreements with eligible private entities selected under subparagraph (A) to grant rights of use, occupancy, and operation within Nuclear Energy Launch Pad Zones.(ii)

Inclusions

An agreement under clause (i) may take the form of—(I)an enhanced use lease;(II)a transaction authorized under section 646(g) of the Department of Energy Organization Act (42 U.S.C. 7256(g));(III)a Strategic Partnership Project agreement with the Department’s management and operations contractor for a National Laboratory; or(IV)any other contractual instrument that the Assistant Secretary determines appropriate for a given project.(6)

Streamlined licensing pathways

The Assistant Secretary shall seek to leverage the existing Department authorities for advanced nuclear technologies and the existing framework for coordination with the Nuclear Regulatory Commission, including the memorandum of understanding between the Department and the Nuclear Regulatory Commission relating to nuclear energy innovation and effective on October 7, 2019 (including subsequent addenda to that memorandum), or, if necessary, may enter into a new memorandum of understanding to provide for expedited licensing pathways for advanced nuclear technologies that are tested or demonstrated under the Launch Pad.(7)

DoE authorities

A facility constructed and operated under the Launch Pad for testing and demonstration purposes shall be considered to be under contract with and for the account of the Department for purposes of section 110 a. of the Atomic Energy Act of 1954 (42 U.S.C. 2140(a)).(8)

Non-federal cost responsibility

Eligible private entities selected to participate in the Launch Pad under paragraph (5)(A) shall bear the full costs of design, construction, operation, and decommissioning of advanced nuclear technologies authorized under the Launch Pad.(9)

Financial assurance

(A)

In general

The Assistant Secretary may require, as a condition of an agreement under paragraph (5)(B)(i), that an eligible private entity provide financial assurance in such form, amount, and duration as the Assistant Secretary determines appropriate to ensure the fulfillment of obligations to the Department in the event of abandonment, default, or other failure to perform.(B)

Types of assurance; phased basis

Financial assurance under this paragraph—(i)may include surety bonds, letters of credit, insurance, parent company guarantees, or other financial instruments acceptable to the Assistant Secretary; and(ii)may be established on a phased basis in accordance with project development milestones, including to cover decommissioning, site restoration, and related costs.(10)

Savings provision

Nothing in this subsection limits or otherwise diminishes the statutory authority of the Secretary under the Atomic Energy Act of 1954 (42 U.S.C. 2011 et seq.) or any other provision of law, including with respect to activities performed off of Federal Government-owned or Federal Government-controlled sites.

Role of Federal power marketing administrations with respect to nuclear power

(a)

In general

Section 302(a) of the Department of Energy Organization Act (42 U.S.C. 7152) is amended—(1)in paragraph (2)—(A)in the first sentence, by striking Administration, shall and inserting Administration shall; and (B) in the second sentence, by striking in paragraphs (1) (A), (1) (B), (1) (C), and (1) (D) and inserting subparagraphs (A) through (C) of paragraph (1); (2)in paragraph (3)— (A) in the first sentence, by striking in paragraphs (1) (E) and (1) (F) and inserting by subparagraphs (D) and (E) of paragraph (1); and (B) in the second sentence by striking (1) (E) and inserting (1)(D); and (3)by adding at the end the following:

(4)(A)The Secretary may utilize the Federal power marketing administrations (including the Southeastern Power Administration, the Southwestern Power Administration, the Bonneville Power Administration, and the Western Area Power Administration) to purchase, transmit, or enter into contracts to market electric power generated by nuclear facilities.(B)The authority provided under this paragraph shall be exercised in accordance with, and subject to, the authorities, limitations, and procedural requirements otherwise applicable to a Federal power marketing administration with respect to the acquisition of electric power resources under otherwise applicable law.

(b)

Federal power

(1)

In general

Unless expressly provided otherwise, any reference in any provision of Federal law (including regulations) to Federal power or electric energy generated at a Federal project shall be deemed to include electric energy generated by a nuclear facility to the extent that such electric energy is purchased, transmitted, or marketed by a Federal power marketing agency (as defined in section 3 of the Federal Power Act (16 U.S.C. 796)).(2)

Rule of construction

Nothing in this subsection alters or supersedes the authorities, limitations, or procedural requirements applicable to a Federal power marketing administration with respect to the acquisition of electric power resources under otherwise applicable law.

Advanced Reactor Demonstration Program

Section 959A of the Energy Policy Act of 2005 is amended—(1)by redesignating subsection (f) as subsection (g); and(2)by inserting after subsection (e) the following:

(f)

Office of Nuclear Energy

(1)

In general

The program established under subsection (b) shall be administered by the Office of Nuclear Energy of the Department.(2)

Deadline

Not later than 30 days after the date of enactment of the Nuclear Energy Innovation and Deployment Act of 2026, the Secretary shall take such actions as are necessary to carry out paragraph (1).

Surplus plutonium for commercial reactors

(a)

Establishment

(1)

In general

The Secretary of Energy shall establish within the Office of Nuclear Energy a milestone-based program to be known as the Surplus Plutonium for Commercial Reactors Program (in this section referred to as the Program), which shall be headed by the Assistant Secretary for Nuclear Energy (in this section referred to as the Assistant Secretary).(2)

Continuation of ongoing activities

The Program shall include, and the Secretary shall continue to carry out, activities undertaken before the date of enactment of this Act to solicit, evaluate, select, or enter into agreements with industry for the processing, fabrication, or utilization of surplus plutonium for advanced nuclear reactor fuel.(b)

Duties

(1)

In general

In carrying out the Program, the Assistant Secretary, in collaboration with the Under Secretary for Nuclear Security and the Assistant Secretary for Environmental Management, shall—(A)utilize solicitations, requests for applications, expressions of interest, or other selection processes issued before, on, or after the date of enactment of this Act to identify, qualify, and select United States commercial nuclear fuel fabricators and other entities that have been deemed qualified by the Assistant Secretary, including having contracted fuel offtake (in this section referred to as participants), to receive and utilize surplus plutonium for fabrication into fuel for advanced nuclear reactors;(B)enter into agreements with participants under the authority provided by section 646(g) of the Department of Energy Organization Act (42 U.S.C. 7256(g)); and(C)distribute such plutonium to participants for processing and fabrication through a milestone-based program that requires participants to meet particular technical, security, and safeguards milestones, as agreed to by the Assistant Secretary and the Under Secretary for Nuclear Security, before a participant is awarded portions of material by the Department.(2)

Timeline

The Assistant Secretary shall continue and, as necessary, complete activities under paragraph (1) as follows:(A)Not later than 180 days after the date of enactment of this Act, the Assistant Secretary shall complete the execution of initial agreements under paragraph (1)(B).(B)Not later than January 1, 2028, the Assistant Secretary shall commence distribution of material under paragraph (1)(C), subject to participants meeting the milestones required under the Program.(C)Not later than January 1, 2035, the Assistant Secretary shall complete distribution of material under paragraph (1)(C), subject to participants meeting the milestones required under the Program.(c)

Termination of surplus plutonium dilute and dispose program

Not later than 180 days after the date of enactment of this Act, the Secretary of Energy shall—(1)terminate the Surplus Plutonium Dilute and Dispose Program, except to the extent needed to dispose of material that presents a safety concern or is not of use to the Office of Nuclear Energy; and(2)resume operations of HB Line at the Savannah River Site, South Carolina.(d)

Transfer

(1)

In general

Upon termination of the Surplus Plutonium Dilute and Dispose Program pursuant to subsection (c), any unobligated amounts previously appropriated or otherwise made available to the Department of Energy for the Surplus Plutonium Dilute and Dispose Program shall be transferred to the Office of Nuclear Energy, except to the extent such amounts are needed to complete processing and transfer of final disposition of previously downblended material.(2)

Use of funds

The Assistant Secretary shall use the funds transferred pursuant to paragraph (1) carry out this section.(e)

Annual briefing

Not later than 1 year after the date of enactment of this Act, and annually thereafter until such time the Program is completed, the Assistant Secretary, in coordination with the Under Secretary for Nuclear Security and the Assistant Secretary for Environmental Management, shall provide to the Committee on Energy and Natural Resources of the Senate, the Committee on Armed Services of the Senate, the Committee on Energy and Commerce of the House of Representatives, and the Committee on Armed Services of the House of Representatives a briefing on the progress of the Program.(f)

Rule of construction

Nothing in this section shall be construed to modify or otherwise affect the legal obligations of the Department of Energy to the State of South Carolina.