[Senate Report 112-57]
[From the U.S. Government Publishing Office]


                                                       Calendar No. 137
112th Congress                                                   Report
                                 SENATE
 1st Session                                                     112-57

======================================================================



 
                         NUCLEAR POWER 2021 ACT

                                _______
                                

   August 30 (legislative day, August 2), 2011.--Ordered to be printed

   Filed under authority of the order of the Senate of August 2, 2011

                                _______
                                

   Mr. Bingaman, from the Committee on Energy and Natural Resources, 
                        submitted the following

                              R E P O R T

                         [To accompany S. 512]

    The Committee on Energy and Natural Resources, to which was 
referred the bill (S. 512) to amend the Energy Policy Act of 
2005 to require the Secretary of Energy to carry out programs 
to develop and demonstrate 2 small modular nuclear reactor 
designs, and for other purposes, having considered the same, 
reports favorably thereon with an amendment and an amendment to 
the title and recommends that the bill, as amended, do pass.
    The amendments are as follows:
    1. Strike out all after the enacting clause and insert in 
lieu thereof the following:

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Nuclear Power 2021 Act''.

SEC. 2. NUCLEAR POWER 2021 INITIATIVE.

    Section 952 of the Energy Policy Act of 2005 (42 U.S.C. 16272) is 
amended by striking subsection (c) and inserting the following:
    ``(c) Nuclear Power 2021 Initiative.--
            ``(1) Definitions.--In this subsection:
                    ``(A) Combined license.--The term `combined 
                license' has the meaning given the term in section 52.1 
                of title 10, Code of Federal Regulations (or a 
                successor regulation).
                    ``(B) Design certification.--The term `design 
                certification' has the meaning given the term in 
                section 52.1 of title 10, Code of Federal Regulations 
                (or a successor regulation).
                    ``(C) Early site permit.--The term `early site 
                permit' has the meaning given the term in section 52.1 
                of title 10, Code of Federal Regulations (or a 
                successor regulation).
                    ``(D) Small modular reactor.--The term `small 
                modular reactor' means a nuclear reactor--
                            ``(i) with a rated capacity of less than 
                        300 electrical megawatts; and
                            ``(ii) that can be constructed and operated 
                        in combination with similar reactors at a 
                        single site.
            ``(2) Duty of secretary.--The Secretary shall carry out, 
        through cooperative agreements with private sector partners--
                    ``(A) a program--
                            ``(i) to develop a standard design for not 
                        less than 2 small modular reactors, at least 1 
                        of which has a rated capacity of not more than 
                        50 electrical megawatts; and
                            ``(ii) to obtain a design certification 
                        from the Nuclear Regulatory Commission for each 
                        of the standard designs by January 1, 2018;
                    ``(B) a program to demonstrate the licensing of 
                small modular reactors by--
                            ``(i) developing applications for a 
                        combined license for each of the designs 
                        certified pursuant to subparagraph (A); and
                            ``(ii) obtaining a combined license from 
                        the Nuclear Regulatory Commission for each of 
                        the designs by January 1, 2021; and
                    ``(C) a program to obtain an early site permit for 
                1 or more small modular reactors.
            ``(3) Merit review of proposals.--The Secretary shall 
        select proposals for cooperative agreements under this 
        subsection--
                    ``(A) on the basis of an impartial review of the 
                scientific and technical merit of the proposals; and
                    ``(B) through the use of competitive procedures.
            ``(4) Technical considerations.--In evaluating proposals, 
        the Secretary shall take into account the efficiency, cost, 
        safety, and proliferation resistance of competing reactor 
        designs.
            ``(5) Cost-share requirements.--
                    ``(A) Design development.--Notwithstanding section 
                988, the Secretary shall require that not less than 50 
                percent of the cost of the development of each small 
                modular reactor design under paragraph (2)(A), and each 
                early site permit under paragraph (2)(C), be provided 
                by a non-Federal source.
                    ``(B) Licensing demonstration.--Notwithstanding 
                section 988, the Secretary shall require that not less 
                than 75 percent of the cost of the licensing 
                demonstration of each small modular reactor design 
                under paragraph (2)(B) be provided by a non-Federal 
                source.
                    ``(C) Calculation of amount.--Non-Federal 
                contributions under this subsection shall be calculated 
                in accordance with section 988(d).''.

    2. Amend the title so as to read as follows: ``To amend the 
Energy Policy Act of 2005 to require the Secretary of Energy to 
carry out programs to develop and demonstrate small modular 
nuclear reactor designs, and for other purposes.''.

                                Purpose

    The purpose of S. 512 is to require the Secretary of Energy 
to carry out programs to develop and demonstrate small modular 
nuclear reactor designs.

                          Background and Need

    The first nuclear power plants built in this country were 
small. The first, Shippingport, which was built by the Atomic 
Energy Commission and began generating power in 1957, could 
generate 60 megawatts of electric power. The second, though 
first privately financed nuclear power plant, Dresden, which 
began operating in 1960, could generate 180 megawatts of 
electricity. The third, Yankee Rowe, which began commercial 
operation in 1961, could generate 140 megawatts of electricity.
    From these modest beginnings, the nuclear industry scaled 
up the size of nuclear power plants rapidly. The four reactors 
that began operating in 1969 ranged in size from 581 to 867 
megawatts of electric capacity. Five years later, four reactors 
with a rated capacity of more than 1,000 megawatts electricity 
were in commercial service.
    Larger reactors offered utilities economies of scale, 
reducing the cost-per-kilowatt-hour of the electricity they 
generated. But increasing plant size also increased problems. 
Greater size increased capital costs, lengthened construction 
times, compounded financing expenses, added to design 
complexity and safety concern, and contributed to regulatory 
delay and uncertainty. These problems pose a substantial 
barrier to the deployment of new nuclear power plants, and they 
have led to a reexamination of the use of small modular 
reactors.
    The term ``small modular reactor'' is generally understood 
to refer to a reactor with a rated capacity of less than 300 
megawatts electric, which can be linked together with other 
small modular reactors, which can then be operated in 
combination. Small modular reactors offer several advantages 
over large nuclear power plants. They would have a lower 
capital cost, and thus would pose less financial risk, carry 
lower financing charges, and be more affordable to smaller 
utilities. They could also be used in smaller markets, which 
might not otherwise be able to support a large base-load 
nuclear power plant, or for industrial applications other than 
electric power production. Small modular reactor designs may 
also offer significant environmental and safety advantages and 
nonproliferation benefits. Importantly, they may also be 
fabricated in a factory, then transported and assembled onsite, 
improving quality control and significantly reducing the cost 
and schedule uncertainty of onsite construction.
    Legislation is needed to increase research, development, 
and demonstration of small modular reactors in order to make 
nuclear power safer, more affordable, and more secure, and to 
remove barriers to its deployment.

                          Legislative History

    S. 512 was introduced by Senator Bingaman on March 8, 2011. 
Senators Murkowski, Udall, Pryor, Landrieu, Risch, and Crapo 
are cosponsors. Similar legislation, H.R. 1108 was introduced 
in the House of Representatives on May 10, 2011.
    The Committee on Energy and Natural Resources held a 
legislative hearing on S. 512 on June 7, 2011. The Committee 
ordered S. 512 favorably reported on July 21, 2011.
    Similar legislation was considered in the 111th Congress. 
S. 2812 was introduced by Senator Bingaman on November 20, 
2009. Senators Murkowski, Udall, Pryor, Landrieu, Risch, and 
Crapo were cosponsors. Similar legislation, H.R. 5164, was 
introduced in the House of Representatives on April 28, 2010. 
The Committee on Energy and Natural Resources held a 
legislative hearing on S. 2812 on December 15, 2009. S. Hrg. 
111-375. The Committee ordered S. 2812 favorably reported, with 
amendments, at its business meeting on September 27, 2010.

                        Committee Recommendation

    The Senate Committee on Energy and Natural Resources, in 
open business session on July 21, 2011, by voice vote of a 
quorum present recommends that the Senate pass S. 512, if 
amended as described herein. Senator Sanders asked to be 
recorded as voting no.

                          Committee Amendments

    During its consideration of S. 512, the Committee adopted 
two amendments. The first amendment is in the nature of a 
substitute, which makes a number of changes to the bill as 
originally introduced. The substitute amendment replaces the 
authority for the Nuclear Power 2010 program now found in 
section 952(c) of the Energy Policy Act of 2005 with authority 
for a new Nuclear Power 2021 program. The substitute amendment 
expands the cooperative design development and licensing 
program from 2 to ``not less than 2'' small modular reactors, 
adds a new program to obtain an early site permit for one or 
more small modular reactors, and adds a definition of the term 
``early site permit.'' The second amendment amends the title of 
the bill to remove the reference to ``2'' small modular reactor 
designs.

                      Section-by-Section Analysis

    Section 1 provides a short title.
    Section 2 amends section 952(c) of the Energy Policy Act of 
2005 (42 U.S.C. 16272) by striking the Nuclear Power 2010 
Program and replacing it with a new Nuclear Power 2021 
Initiative.
    Paragraph (1) of the new subsection (c) defines terms used 
in the subsection. The terms ``combined license'', ``design 
certification'', and ``early site permit'' are defined by 
reference to definitions adopted by the Nuclear Regulatory 
Commission. The term ``small modular reactor'' is defined as a 
nuclear reactor that is both ``small,'' which, consistent with 
the International Atomic Energy Agency's definition of 
``small,'' means that it has a rated capacity of less than 300 
electrical megawatts, and ``modular,'' which means that 
individual units ``can be constructed and operated in 
combination'' with similar units, though a single unit could be 
constructed and operated by itself.
    Paragraph (2) directs the Secretary of Energy to carry out, 
through cooperative agreements with private sector partners, 
programs to develop and demonstrate small modular reactors.
    Paragraph 2(A) requires the Secretary to carry out a 
program to develop a standard design for not less than two 
small modular reactors, at least one of which has a rated 
capacity of not less than 50 electrical megawatts, and obtain a 
design certification from the Nuclear Regulatory Commission for 
each of the two standard designs by January 1, 2018.
    Paragraph 2(B) requires the Secretary to carry out a 
program to demonstrate the licensing of small modular reactors 
by developing applications for a combined license for each of 
the designs and obtaining a combined license from the Nuclear 
Regulatory Commission for each design by January 1, 2021. 
Although this paragraph requires the Secretary to demonstrate 
the licensing of not less than 2 small modular reactors using 
combined licenses, it is not intended to preclude private 
sector partners from licensing other small modular reactors 
using separate construction permits and operating licenses.
    Paragraph 2(C) requires the Secretary to carry out a 
program to obtain an early site permit for one or more small 
modular reactors.
    Paragraph (3) requires the Secretary to select proposals 
for cooperative agreement on the basis of an impartial review 
of their scientific and technical merit, and through the use of 
competitive procedures.
    Paragraph (4) requires the Secretary to take into account 
the efficiency, cost, safety, and proliferation resistance of 
competing reactor designs in evaluating proposals.
    Paragraph (5) requires that at least 50 percent of the cost 
of developing small modular reactor designs and early site 
permits under subparagraphs (A) and (C) of paragraph (2), and 
at least 75 percent of the cost of the licensing demonstration 
of each small modular reactor design under paragraph (2)(B) be 
provided by a non-Federal source.

                   Cost and Budgetary Considerations

    The following estimate of costs of this measure has been 
provided by the Congressional Budget Office.

S. 512--Nuclear Power 2021 Act

    Summary: S. 512 would authorize the Department of Energy 
(DOE) to enter into cooperative agreements with private-sector 
entities to develop and license standard designs for small 
modular nuclear reactors. CBO estimates that implementing S. 
512 would cost $414 million over the 2012-2016 period, assuming 
appropriation of the necessary amounts. Enacting S. 512 would 
not affect direct spending or revenues; therefore, pay-as-you-
go procedures do not apply.
    S. 512 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act (UMRA).
    Estimated cost to the Federal Government: The estimated 
budgetary impact of S. 512 is shown in the following table. The 
costs of this legislation fall within budget function 270 
(energy).

----------------------------------------------------------------------------------------------------------------
                                                                 By fiscal year, in millions of dollars--
                                                         -------------------------------------------------------
                                                            2012     2013     2014     2015     2016   2012-2016
----------------------------------------------------------------------------------------------------------------
                                  CHANGES IN SPENDING SUBJECT TO APPROPRIATION

Estimated Authorization Level...........................       67      100      100      100      100       467
Estimated Outlays.......................................       40       79       95      100      100       414
----------------------------------------------------------------------------------------------------------------

    Basis of estimate: S. 512 would direct the Secretary of 
Energy to enter into cooperative agreements with private-sector 
entities to develop standard designs for small modular nuclear 
reactors as well as processes for licensing such reactors with 
the Nuclear Regulatory Commission (NRC). The bill would 
authorize DOE to cover up to 50 percent of the cost of 
developing designs for such reactors and up to 25 percent of 
the cost to demonstrate licensing processes and would specify a 
final deadline for all work to be completed by January 1, 2021.
    CBO estimates that fully funding S. 512 would require 
appropriations totaling $467 million over the 2012-2016 period. 
That estimate is based on information from DOE about the 
agency's costs to develop facilities and demonstrate licensing 
processes for new, large-scale nuclear reactors and takes into 
account the cost-share requirements specified in the bill. 
Assuming appropriation of those amounts, CBO estimates that 
resulting outlays would total $414 million over the 2012-2016 
period.
    The NRC also would incur costs to certify designs and 
develop licensing procedures for small reactors under S. 512. 
However, according to the NRC, the agency already plans to 
develop its capacity to support regulatory processes for small 
modular nuclear reactors. As a result, CBO estimates that 
implementing S. 512 would not significantly affect net spending 
by that agency; any such spending would be subject to 
appropriation and would be largely offset by fees that the NRC 
is authorized to collect from regulated entities.
    Pay-As-You-Go considerations: None.
    Intergovernmental and private-sector impact: S. 512 
contains no intergovernmental or private-sector mandates as 
defined in UMRA and would impose no costs on state, local, or 
tribal governments.
    Estimate prepared by: Federal Costs: Megan Carroll; Impact 
on State, Local, and Tribal Governments: Ryan Miller; Impact on 
the Private Sector: Amy Petz.
    Estimate approved by: Theresa Gullo, Deputy Assistant 
Director for Budget Analysis.

                      Regulatory Impact Evaluation

    In compliance with paragraph 11(b) of rule XXVI of the 
Standing Rules of the Senate, the Committee makes the following 
evaluation of the regulatory impact which would be incurred in 
carrying out S. 512.
    The bill is not a regulatory measure in the sense of 
imposing Government established standards or significant 
economic responsibilities on private individuals and 
businesses.
    No personal information would be collected in administering 
the program. Therefore, there would be no impact on personal 
privacy.
    Little, if any, additional paperwork would result from the 
enactment of S. 512.

                   Congressionally Directed Spending

    S. 512, as ordered reported, does not contain any 
congressionally directed spending items, limited tax benefits, 
or limited tariff benefits as defined in rule XLIV of the 
Standing Rules of the Senate.

                        Executive Communications

    The testimony on S. 512 given by the Deputy Assistant 
Secretary for Reactor Technologies, Office of Nuclear Energy, 
The U.S. Department of Energy, at the Committee's June 7, 2011 
hearing as follows:

  Statement of John E. Kelly, Deputy Assistant Secretary for Reactor 
      Technologies, Office of Nuclear Energy, Department of Energy


                              introduction


    Thank you, Chairman Bingaman, Ranking Member Murkowski, and 
Members of the Committee. This is my first testimony before 
Congress and it is a particular pleasure to be discussing small 
modular reactors (SMRs) with you, as they have been an area of 
great interest to me for some time.
    Before joining the Department of Energy, I co-chaired an 
American Nuclear Society special committee that was developing 
solutions to generic licensing issues for small modular 
reactors. Over the course of the last 18 months, this special 
committee, together with the Nuclear Energy Institute, the 
Nuclear Regulatory Commission and the nuclear industry, has 
made great progress in forging the blueprint for the regulatory 
framework for small modular reactors. This progress 
demonstrates an increased interest in the licensing and 
commercialization of SMRs.
    The Administration continues to view nuclear power as an 
important clean energy option. Small modular reactors, 
specifically reactors that have an electrical output of less 
than 300 megawatts, are a promising and innovative technology. 
We see these smaller reactors as giving our utilities 
additional clean energy options and allowing nuclear power to 
penetrate the energy market more broadly. Secretary Chu has 
written that, ``if we can develop this technology in the U.S. 
and build these reactors with American workers, we will have a 
key competitive edge''. SMRs are already inspiring American 
innovation and have the potential to significantly enhance U.S. 
competiveness.
    Since former Assistant Secretary Dr. Pete Miller testified 
to this Committee in 2009 on the two bills we are discussing 
today, several developments have taken place. A little over a 
year ago, we released our fiscal year 2011 budget request, 
which proposed a small modular reactor program with $40 million 
of funding. The proposal was to spend half of that funding on 
R&D efforts and half to initiate a competitive selection 
process to establish public-private partnerships to cost-share 
design certification and licensing efforts with the selected 
winners.
    Earlier this year, the Department released its fiscal year 
2012 budget request, which included an expanded version of the 
small modular reactor program. The request for FY 2102 is $29 
million for R&D and $67 million for design certification and 
licensing activities. The DOE request outlines a multi-year, 
$452 million program that would use cost-shared arrangements 
with industry partners to complete design certification 
activities for up to two light water small modular reactor 
designs. There are several potential SMR vendors pursuing both 
LWR designs and more advanced concepts. Many utilities are 
interested in this technology to replace aging fossil plants.
    The events at the Fukushima nuclear power plants have led 
the Nuclear Regulatory Commission to launch a 90-day review to 
see what lessons can be learned from the Japanese experience 
and applied to U.S. nuclear plants. I want to note that 
designers of light water SMRs have already placed major 
emphasis on the inherent safety of these reactors. Because of 
their lower power level, SMRs have a much lower level of decay 
heat and therefore may require less cooling after reactor 
shutdown. Several designs incorporate passive safety features 
that utilize gravity-driven systems rather than engineered, 
pump-driven systems to supply backup cooling in unusual 
circumstances. Some concepts use natural circulation for normal 
operations, requiring no primary system pumps and providing an 
even more robust safety case. In addition, many SMR designs 
utilize integral designs for which all major primary components 
are located in a single pressure vessel. That feature results 
in a much lower susceptibility to certain potential events, 
such as a loss of coolant accident, because there is no large 
external primary piping. Lastly, most SMRs can be sited 
underground, which should improve their security profile and 
may enhance seismic safety.


                     comments on s. 512 and s. 1067


    Turning to the two bills under consideration by the 
Committee, the Department has a few comments.
    S. 1067 gives broad authority to conduct research into 
small modular reactors, as well as other connected issues.
    S. 512, the Nuclear Power 2021 Act, would require the 
Department of Energy to carry out a program to develop and 
demonstrate two small modular reactor designs. If passed, 
several factors would be important to consider:
     The requirement that at least one of the designs 
be less than 50 MW is too restrictive; simply having an upper 
bound of approximately 300 MWe would be more 
appropriate. Cost-shared design development and licensing 
should be based on competitive procurements and the market 
place should establish the appropriate design parameters.
     The licensing effort should include two different 
designs.
     The program should initially be focused on light 
water reactor technology based on the large amount of 
experience--both design and licensing--with such reactors.


                               conclusion


    That concludes my formal remarks. Thank you for the 
opportunity to testify and I look forward to answering your 
questions and working with the Committee to achieve the 
administration's goals of energy security and reducing the 
nation's carbon emissions.

                        Changes in Existing Law

    In compliance with paragraph 12 of rule XXVI of the 
Standing Rules of the Senate, changes in existing law made by 
the bill S. 512, as ordered reported, are shown as follows 
(existing law proposed to be omitted is enclosed in black 
brackets, new matter is printed in italic, existing law in 
which no change is proposed is shown in roman):

                       ENERGY POLICY ACT OF 2005


                           Public Law 109-58


   AN ACT To ensure jobs for our future with secure, affordable, and 
reliable energy.

           *       *       *       *       *       *       *


TITLE IX--RESEARCH AND DEVELOPMENT

           *       *       *       *       *       *       *


Subtitle E--Nuclear Energy

           *       *       *       *       *       *       *


SEC. 952. NUCLEAR ENERGY RESEARCH PROGRAMS.

    (a) Nuclear Energy Research Initiative.--The Secretary 
shall carry out a Nuclear Energy Research Initiative for 
research and development related to nuclear energy.
    (b) Nuclear Energy Systems Support Program.--The Secretary 
shall carry out a Nuclear Energy Systems Support Program to 
support research and development activities addressing 
reliability, availability, productivity, component aging, 
safety, and security of existing nuclear power plants.
    [(c) Nuclear Power 2010 Program.--
          [(1) In general.--The Secretary shall carry out a 
        Nuclear Power 2010 Program, consistent with 
        recommendations of the Nuclear Energy Research Advisory 
        Committee of the Department in the report entitled ``A 
        Roadmap to Deploy New Nuclear Power Plants in the 
        United States by 2010'' and dated October 2001.
          [(2) Administration.--The Program shall include--
                  [(A) use of the expertise and capabilities of 
                industry, institutions of higher education, and 
                National Laboratories in evaluation of advanced 
                nuclear fuel cycles and fuels testing;
                  [(B) consideration of a variety of reactor 
                designs suitable for both developed and 
                developing nations;
                  [(C) participation of international 
                collaborators in research, development, and 
                design efforts, as appropriate; and
                  [(D) encouragement for participation by 
                institutions of higher education and industry.]
    (c) Nuclear Power 2021 Initiative.--
          (1) Definitions.--In this subsection:
                  (A) Combined license.--The term ``combined 
                license'' has the meaning given the term in 
                section 52.1 of title 10, Code of Federal 
                Regulations (or a successor regulation).
                  (B) Design certification.--The term ``design 
                certification'' has the meaning given the term 
                in section 52.1 of title 10, Code of Federal 
                Regulations (or a successor regulation).
                  (C) Early site permit.--The term ``early site 
                permit'' has the meaning given the term in 
                section 52.1 of title 10, Code of Federal 
                Regulations (or a successor regulation).
                  (D) Small modular reactor.--The term ``small 
                modular reactor'' means a nuclear reactor--
                          (i) with a rated capacity of less 
                        than 300 electrical megawatts; and
                          (ii) that can be constructed and 
                        operated in combination with similar 
                        reactors at a single site.
          (2) Duty of secretary.--The Secretary shall carry 
        out, through cooperative agreements with private sector 
        partners--
                  (A) a program--
                          (i) to develop a standard design for 
                        not less than 2 small modular reactors, 
                        at least 1 of which has a rated 
                        capacity of not more than 50 electrical 
                        megawatts; and
                          (ii) to obtain a design certification 
                        from the Nuclear Regulatory Commission 
                        for each of the standard designs by 
                        January 1, 2018;
                  (B) a program to demonstrate the licensing of 
                small modular reactors by--
                          (i) developing applications for a 
                        combined license for each of the 
                        designs certified pursuant to 
                        subparagraph (A); and
                          (ii) obtaining a combined license 
                        from the Nuclear Regulatory Commission 
                        for each of the designs by January 1, 
                        2021; and
                  (C) a program to obtain an early site permit 
                for 1 or more small modular reactors.
          (3) Merit review of proposals.--The Secretary shall 
        select proposals for cooperative agreements under this 
        subsection--
                  (A) on the basis of an impartial review of 
                the scientific and technical merit of the 
                proposals; and
                  (B) through the use of competitive 
                procedures.
          (4) Technical considerations.--In evaluating 
        proposals, the Secretary shall take into account the 
        efficiency, cost, safety, and proliferation resistance 
        of competing reactor designs.
          (5) Cost-share requirements.--
                  (A) Design development.--Notwithstanding 
                section 988, the Secretary shall require that 
                not less than 50 percent of the cost of the 
                development of each small modular reactor 
                design under paragraph (2)(A), and each early 
                site permit under paragraph (2)(C), be provided 
                by a non-Federal source.
                  (B) Licensing demonstration.--Notwithstanding 
                section 988, the Secretary shall require that 
                not less than 75 percent of the cost of the 
                licensing demonstration of each small modular 
                reactor design under paragraph (2)(B) be 
                provided by a non-Federal source.
                  (C) Calculation of amount.--Non-Federal 
                contributions under this subsection shall be 
                calculated in accordance with section 988(d).

           *       *       *       *       *       *       *


                                  
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