[Congressional Record Volume 157, Number 96 (Thursday, June 30, 2011)]
[Senate]
[Pages S4296-S4297]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Ms. MURKOWSKI (for herself and Ms. Landrieu):
  S. 1320. A bill to require the Secretary of Energy to offer to enter 
into temporary used fuel storage facility agreements; to the Committee 
on Environment and Public Works.
  Ms. MURKOWSKI. Mr. President, I rise to introduce legislation to help 
address one of the glaring issues our domestic nuclear industry faces--
what to do with the used nuclear fuel being stored at over 100 sites 
across the country. I am pleased to be joined by Senator Mary Landrieu 
in introducing this bill.
  Typically, a nuclear power plant stores its used fuel in a spent fuel 
pool located within the reactor site's exclusion zone. When there is no 
more room in the pool, and the used fuel is sufficiently cooled, the 
fuel can be moved to dry cask storage nearby the plant in what are 
called independent spent fuel storage installations.
  Although there are 104 nuclear reactors producing power across the 
United States, not all have been in operation long enough to fill their 
spent fuel pools and require dry cask storage. So at present, the are 
63 independent spent fuel storage installations at 56 sites in 33 
States. Of those, 7 sites are from decommissioned plants. Two 
decommissioned plant sites still have fuel in their spent fuel pool. 
That means there are 9 sites, from 10 decommissioned reactors, with 
2,800 metric tons of used fuel that is being stored and guarded, 
whether in dry cask or fuel pools, but no operating power plant nearby. 
These are orphan sites, and but for the remaining spent fuel the land 
could be used for other purposes.
  Under the Nuclear Waste Policy Act of 1982, the Federal Government is 
contractually obligated to take title to spent nuclear fuel from 
commercial nuclear power plants starting in 1998. Our Government has 
not fulfilled that requirement and as a result we face continuous 
lawsuits from the utilities operating those commercial power plants to 
cover the costs of storing the spent fuel on-site.
  According to the Department of Justice, as of June 24, 2011, $1.12 
billion has been paid out in settlement of these lawsuits, with an 
additional $220 million paid in judgments. Another $157 million is 
authorized, but has not yet been paid in settlement. And $937 million 
in outstanding judgments remains on appeal or remand. So, the total 
authorized payment level, so far, is roughly $1.5 billion, with close 
to another $1 billion dollars in payment going through the legal 
process. These are not lawsuits that go away once they are settled. 
Every year that the Government is in breach of its contractual 
obligation, the same company can bring a similar lawsuit as had been 
previously settled. As more nuclear power plants fill up their spent 
fuel pools and turn to dry cask storage, more lawsuits for breach of 
contract will be filed. The Department of Energy estimates that even if 
the Government starts to accept the spent fuel by 2021, the total cost 
of the lawsuits will be $13.1 billion.
  While the Government anticipates a liability of $13.1 billion, 
utilities estimate the final tally could exceed $50 billion. But both 
the DOE and private sector estimates were developed before the 
Administration took steps to withdraw the Yucca Mountain application. 
More recent estimates suggest a cost of $100 billion.
  I take special note of what our future liability could be. The 
Department of Energy expects the Federal Government's liability to 
increase by $500 million annually if waste is not accepted by 2021--10 
years from now. It took us 30 years to get this far on Yucca Mountain. 
If we are to begin the search for a permanent repository anew, as it 
appears the Administration would like us to do, it seems increasingly 
likely the Government's liability costs will greatly exceed the earlier 
$50 billion estimate. At a time when we are already racking up 
trillions of dollars in debt for future generations, the administration 
has freely chosen to incur additional future taxpayer liability in 
terms of tens of billions of dollars by withdrawing the Yucca Mountain 
repository license application.
  Fortunately for the administration, I have a solution. The Nuclear 
Fuel Storage Improvement Act of 2011 that I am introducing seeks to 
establish up to two interim used nuclear fuel storage facilities to 
centralize the used fuel spread across this nation, end the lawsuits 
against the Federal Government, and help the domestic nuclear industry, 
and the communities that host nuclear power plants, partially resolve 
the long-standing problem of what to do with the used nuclear fuel 
stored on-site.
  The bill would provide financial incentives to a local unit of 
government, as well as the state in which that unit of government is 
located, to serve as a host of an interim used nuclear fuel storage 
facility. The facility itself would be privately owned and operated, 
and licensed by the Nuclear Regulatory Commission, but the host entity 
would be entitled to financial payments from the Federal Government for 
its willingness to locate the storage facility within its jurisdiction. 
Up to two locations would be eligible for the financial agreement, 
funds for which would come from the Nuclear Waste Fund set up by the 
Nuclear Waste Policy Act of 1982.
  Importantly for the Federal Government, under the legislation the 
Secretary of Energy can contract with the private entity operating an 
interim storage facility to store used fuel from civilian nuclear power 
plants. Priority of acceptance is given to the used fuel being stored 
at plants that have been permanently shut down and decommissioned--the 
orphan sites. The Secretary is then authorized to enter into an 
agreement with those which it has contractual obligations to under the 
Nuclear Waste Policy Act, to settle all claims and liabilities for the 
Government's failure to take title of the used nuclear fuel, thus 
saving the Government, and future taxpayers, billions of dollars.
  I want to be clear. In no way shape or form does this legislation 
diminish or replace the need for a permanent repository. I have been, 
and continue to be, supportive of using Yucca Mountain for that 
purpose. Until such a repository can be opened, however, we have a 
responsibility to put a plan into action

[[Page S4297]]

that will consolidate the used fuel sitting at all of these sites 
across the nation, as well as settle the Federal Government's liability 
for its failure to take title to that spent fuel, costing the American 
taxpayer millions of dollars each year. I believe this legislation 
moves us in that direction.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 1320

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Nuclear Fuel Storage 
     Improvement Act of 2011''.

     SEC. 2. DEFINITIONS.

       In this Act:
       (1) Commission.--The term ``Commission'' means the Nuclear 
     Regulatory Commission.
       (2) Secretary.--The term ``Secretary'' means the Secretary 
     of Energy.

     SEC. 3. INCENTIVES FOR SITING OF TEMPORARY USED FUEL STORAGE 
                   FACILITIES.

       (a) Definitions.--In this section:
       (1) Agreement.--The term ``agreement'' means a temporary 
     used fuel storage facility agreement entered into under 
     subsection (e).
       (2) First used fuel receipt.--The term ``first used fuel 
     receipt'' means the receipt of used fuel by a temporary used 
     fuel storage facility at a site within the jurisdiction of a 
     unit of local government that is a party to an agreement.
       (3) Nuclear waste fund.--The term ``Nuclear Waste Fund'' 
     means the Nuclear Waste Fund established under section 302 of 
     the Nuclear Waste Policy Act of 1982 (42 U.S.C. 10222).
       (4) Unit of local government.--The term ``unit of local 
     government'' means any borough, city, county, parish, town, 
     township, village, or other general purpose political 
     subdivision of a State, or association of 2 or more political 
     subdivisions of a State.
       (5) Used fuel.--The term ``used fuel'' means nuclear fuel 
     that has been withdrawn from a nuclear reactor following 
     irradiation, the constituent elements of which have not been 
     separated by reprocessing.
       (b) Authorization.--The Secretary shall offer to enter into 
     temporary used fuel storage facility agreements in accordance 
     with this section.
       (c) Notice From Units of Local Government to Secretary.--
     Not later than January 1, 2013, representatives of a unit of 
     local government, with the written approval of the Governor 
     of the State in which the jurisdiction of the local 
     government is located, may submit to the Secretary written 
     notice that the unit of local government is willing to have a 
     privately owned and operated temporary used fuel storage 
     facility located at an identified site within the 
     jurisdiction of the unit of local government.
       (d) Preliminary Compensation.--
       (1) In general.--The Secretary shall make payments of 
     $1,000,000 each year to not more than 3 units of local 
     government that have submitted notices under subsection (c).
       (2) Multiple notices.--If more than 3 notices are received 
     under subsection (c), the Secretary shall make payments to 
     the first 3 units of local government, based on the order in 
     which the notices are received.
       (3) Timing.--The payments shall be made annually for a 3-
     year period, on the anniversary date of the filing of the 
     notice under subsection (c).
       (e) Agreement.--
       (1) In general.--On the docketing of an application for a 
     license for a temporary used fuel storage facility, in 
     accordance with part 72 of title 10, Code of Federal 
     Regulations, at a site within the jurisdiction of a unit of 
     local government by the Commission, the Secretary shall offer 
     to enter into a temporary used fuel storage facility economic 
     impact agreement with the unit of local government.
       (2) Terms and conditions.--An agreement between the 
     Secretary and a unit of local government under this 
     subsection shall contain such terms and conditions (including 
     such financial and institutional arrangements) as the 
     Secretary and the unit of local government determine to be 
     reasonable and appropriate.
       (3) Amendment.--An agreement may be--
       (A) amended only with the mutual consent of the parties to 
     the agreement; and
       (B) terminated only in accordance with paragraph (4).
       (4) Termination.--The Secretary shall terminate an 
     agreement if the Secretary determines that any major element 
     of the temporary used fuel storage facility required under 
     the agreement will not be completed.
       (5) Number of agreements.--Not more than 2 agreements may 
     be in effect at any time.
       (6) Payment schedule.--
       (A) In general.--If the Secretary enters into an agreement 
     under this subsection, the Secretary shall make to the unit 
     of local government and the State in which the unit of local 
     government is located--
       (i) payments of--

       (I) on the date of entering into the agreement under this 
     subsection, $6,000,000;
       (II) during the period beginning on the date of entering 
     into an agreement and ending on the date of first used fuel 
     receipt or denial of the license application for a temporary 
     used fuel storage facility by the Commission, whichever is 
     later, $10,000,000 for each year; and
       (III) during the period beginning on the date of first used 
     fuel receipt and ending on the date of closure of the 
     facility, a total of the higher of--

       (aa) $15,000,000 for each year; or
       (bb) $15,000 per metric ton of used fuel received at the 
     facility for each year, up to a maximum of $25,000,000 for 
     each year; and
       (ii) a payment of $20,000,000 on closure of the facility.
       (B) Timing of annual payments.--The Secretary shall make 
     annual payments under subparagraph (A)(i)--
       (i) in the case of annual payments described in 
     subparagraph (A)(i)(II), on the anniversary of the date of 
     the docketing of the license application by the Commission; 
     and
       (ii) in the case of annual payments described in 
     subparagraph (A)(i)(III), on the date of the first used fuel 
     receipt and thereafter on the anniversary date of the first 
     used fuel receipt, in lieu of annual payments described in 
     subparagraph (A)(i)(II).
       (C) Termination of authority.--Subject to subparagraph 
     (A)(ii), the authority to make payments under this paragraph 
     terminates on the date of closure of the facility.
       (f) Funding.--Funding for compensation and payments 
     provided for, and made under, this section shall be made 
     available from amounts available in the Nuclear Waste Fund.

     SEC. 4. ACCEPTANCE, STORAGE, AND SETTLEMENT OF CLAIMS.

       (a) In General.--The Secretary shall offer to enter into a 
     long-term contract for the storage of used fuel from civilian 
     nuclear power plants with a private entity that owns or 
     operates an independent used fuel storage facility licensed 
     by the Commission that is located within the jurisdiction of 
     a unit of local government to which payments are made 
     pursuant to section 3(e).
       (b) Settlement and Acceptance of Used Fuel.--
       (1) In general.--At the request of a party to a contract 
     under section 302(a) of the Nuclear Waste Policy Act of 1982 
     (42 U.S.C. 10222(a)), the Secretary may enter into an 
     agreement for the settlement of all claims against the 
     Secretary under a contract for failure to dispose of high-
     level radioactive waste or used nuclear fuel not later than 
     January 31, 1998.
       (2) Terms and conditions.--A settlement agreement described 
     in paragraph (1)--
       (A) shall contain such terms and conditions (including such 
     financial and institutional arrangements) as the Secretary 
     and the party to the contract determine to be reasonable and 
     appropriate; and
       (B) may include the acceptance of used fuel from the party 
     to the contract for storage at a facility with respect to 
     which the Secretary has a long-term contract under subsection 
     (a).
       (c) Priority for Acceptance for Closed Facilities.--
       (1) In general.--If a request for fuel acceptance is made 
     under this section by a facility that has produced used 
     nuclear fuel and that is shut down permanently and the 
     facility has been decommissioned, the Secretary shall provide 
     priority for the acceptance of the fuel produced by the 
     facility.
       (2) Schedule.--Spent nuclear fuel and high-level 
     radioactive waste generated by a facility in existence as of 
     the date of enactment of this Act shall be offered a schedule 
     in accordance with the priority established pursuant to 
     Article IV.b.5 of the contract entitled ``Contract for 
     Disposal of Spent Nuclear Fuel and/or High-Level Radioactive 
     Waste'', as specified in section 961.11 of title 10, Code of 
     Federal Regulations.
       (d) Transportation of Used Fuel.--
       (1) In general.--The Secretary shall provide for the 
     transportation of used fuel accepted by the Secretary under 
     this section.
       (2) Systems and components.--
       (A) In general.--The Secretary shall procure all systems 
     and components necessary to transport used fuel from 
     facilities designated by contract holders to 1 or more 
     storage facilities under this section.
       (B) Casks.--The Secretary shall--
       (i) use transportation and storage casks that are approved 
     by the Commission in use at facilities designated by contract 
     holders; and
       (ii) compensate the owner and operator of each facility for 
     the use of the casks.
                                 ______