[House Report 115-924]
[From the U.S. Government Publishing Office]


115th Congress     }                                  {       Report
                        HOUSE OF REPRESENTATIVES
 2d Session        }                                  {        115-924

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



 
               NUCLEAR UTILIZATION OF KEYNOTE ENERGY ACT

                                _______
                                

 September 7, 2018.--Committed to the Committee of the Whole House on 
            the State of the Union and ordered to be printed

                                _______
                                

 Mr. Walden, from the Committee on Energy and Commerce, submitted the 
                               following

                              R E P O R T

                        [To accompany H.R. 1320]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Energy and Commerce, to whom was referred 
the bill (H.R. 1320) to amend the Omnibus Budget Reconciliation 
Act of 1990 related to Nuclear Regulatory Commission user fees 
and annual charges, and for other purposes, having considered 
the same, report favorably thereon with an amendment and 
recommend that the bill as amended do pass.

                                CONTENTS

                                                                   Page
Purpose and Summary..............................................     6
Background and Need for Legislation..............................     7
Committee Action.................................................    10
Committee Votes..................................................    10
Oversight Findings and Recommendations...........................    11
New Budget Authority, Entitlement Authority, and Tax Expenditures    11
Congressional Budget Office Estimate.............................    11
Federal Mandates Statement.......................................    14
Statement of General Performance Goals and Objectives............    14
Duplication of Federal Programs..................................    14
Committee Cost Estimate..........................................    14
Earmark, Limited Tax Benefits, and Limited Tariff Benefits.......    14
Disclosure of Directed Rule Makings..............................    14
Advisory Committee Statement.....................................    14
Applicability to Legislative Branch..............................    14
Section-by-Section Analysis of the Legislation...................    15
Changes in Existing Law Made by the Bill, as Reported............    17

    The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Nuclear Utilization of Keynote Energy 
Act''.

SEC. 2. NUCLEAR REGULATORY COMMISSION USER FEES AND ANNUAL CHARGES 
                    THROUGH FISCAL YEAR 2020.

  (a) In General.--Section 6101(c)(2)(A) of the Omnibus Budget 
Reconciliation Act of 1990 (42 U.S.C. 2214(c)(2)(A)) is amended--
          (1) in clause (iii), by striking ``and'' at the end;
          (2) in clause (iv), by striking the period at the end and 
        inserting ``; and''; and
          (3) by adding at the end the following:
                          ``(v) amounts appropriated to the Commission 
                        for the fiscal year for activities related to 
                        the development of a regulatory infrastructure 
                        for advanced nuclear reactor technologies.''.
  (b) Repeal.--Effective October 1, 2020, section 6101 of the Omnibus 
Budget Reconciliation Act of 1990 (42 U.S.C. 2214) is repealed.

SEC. 3. NUCLEAR REGULATORY COMMISSION USER FEES AND ANNUAL CHARGES FOR 
                    FISCAL YEAR 2021 AND EACH FISCAL YEAR THEREAFTER.

  (a) Annual Budget Justification.--
          (1) In general.--In the annual budget justification submitted 
        by the Commission to Congress, the Commission shall expressly 
        identify anticipated expenditures necessary for completion of 
        the requested activities of the Commission anticipated to occur 
        during the applicable fiscal year.
          (2) Restriction.--The Commission shall, to the maximum extent 
        practicable, use any funds made available to the Commission for 
        a fiscal year for the anticipated expenditures identified under 
        paragraph (1) for the fiscal year.
          (3) Limitation on corporate support costs.--With respect to 
        the annual budget justification submitted to Congress, 
        corporate support costs, to the maximum extent practicable, 
        shall not exceed the following percentages of the total budget 
        authority of the Commission requested in the annual budget 
        justification:
                  (A) 30 percent for each of fiscal years 2021 and 
                2022.
                  (B) 29 percent for each of fiscal years 2023 and 
                2024.
                  (C) 28 percent for fiscal year 2025 and each fiscal 
                year thereafter.
  (b) Fees and Charges.--
          (1) Annual assessment.--
                  (A) In general.--Each fiscal year, the Commission 
                shall assess and collect fees and charges in accordance 
                with paragraphs (2) and (3) in a manner that ensures 
                that, to the maximum extent practicable, the amount 
                assessed and collected is equal to an amount that 
                approximates--
                          (i) the total budget authority of the 
                        Commission for that fiscal year; less
                          (ii) the budget authority of the Commission 
                        for the activities described in subparagraph 
                        (B).
                  (B) Excluded activities described.--The activities 
                referred to in subparagraph (A)(ii) are the following:
                          (i) Any fee-relief activity, as identified by 
                        the Commission.
                          (ii) Amounts appropriated for the fiscal year 
                        to the Commission--
                                  (I) from the Nuclear Waste Fund 
                                established under section 302(c) of the 
                                Nuclear Waste Policy Act of 1982 (42 
                                U.S.C. 10222(c));
                                  (II) for implementation of section 
                                3116 of the Ronald W. Reagan National 
                                Defense Authorization Act for Fiscal 
                                Year 2005 (50 U.S.C. 2601 note; Public 
                                Law 108 375);
                                  (III) for the homeland security 
                                activities of the Commission (other 
                                than for the costs of fingerprinting 
                                and background checks required under 
                                section 149 of the Atomic Energy Act of 
                                1954 (42 U.S.C. 2169) and the costs of 
                                conducting security inspections);
                                  (IV) for the Inspector General 
                                services of the Commission provided to 
                                the Defense Nuclear Facilities Safety 
                                Board;
                                  (V) for the partnership program with 
                                institutions of higher education 
                                established under section 244 of the 
                                Atomic Energy Act of 1954 (42 U.S.C. 
                                2015c); and
                                  (VI) for the scholarship and 
                                fellowship programs under section 243 
                                of the Atomic Energy Act of 1954 (42 
                                U.S.C. 2015b).
                          (iii) Costs for activities related to the 
                        development of regulatory infrastructure for 
                        advanced nuclear reactor technologies.
                  (C) Exception.--The exclusion described in 
                subparagraph (B)(iii) shall cease to be effective on 
                January 1, 2032.
                  (D) Report.--Not later than December 31, 2030, the 
                Commission shall submit to the Committee on 
                Appropriations and the Committee on Environment and 
                Public Works of the Senate and the Committee on 
                Appropriations and the Committee on Energy and Commerce 
                of the House of Representatives a report describing the 
                views of the Commission on the continued 
                appropriateness and necessity of funding for the 
                activities described in subparagraph (B)(iii).
          (2) Fees for service or thing of value.--In accordance with 
        section 9701 of title 31, United States Code, the Commission 
        shall assess and collect fees from any person who receives a 
        service or thing of value from the Commission to cover the 
        costs to the Commission of providing the service or thing of 
        value.
          (3) Annual charges.--
                  (A) In general.--Subject to subparagraph (B) and 
                except as provided in subparagraph (D), the Commission 
                may charge to any licensee or certificate holder of the 
                Commission an annual charge in addition to the fees set 
                forth in paragraph (2).
                  (B) Cap on annual charges of certain licensees.--
                          (i) Operating reactors.--The annual charge 
                        under subparagraph (A) charged to an operating 
                        reactor licensee, to the maximum extent 
                        practicable, shall not exceed the annual fee 
                        amount per operating reactor licensee 
                        established in the final rule of the Commission 
                        entitled ``Revision of Fee Schedules; Fee 
                        Recovery for Fiscal Year 2015'' (80 Fed. Reg. 
                        37432 (June 30, 2015)), as may be adjusted 
                        annually by the Commission to reflect changes 
                        in the Consumer Price Index published by the 
                        Bureau of Labor Statistics of the Department of 
                        Labor.
                          (ii) Fuel facilities.--
                                  (I) In general.--The total annual 
                                charges under subparagraph (A) charged 
                                to fuel facility licensees, to the 
                                maximum extent practicable, shall not 
                                exceed an amount that is equal to the 
                                total annual fees collected from the 
                                fuel facilities class under the final 
                                rule of the Commission entitled 
                                ``Revision of Fee Schedules; Fee 
                                Recovery for Fiscal Year 2016'' (81 Fed 
                                Reg. 41171 (June 24, 2016)), which 
                                amount may be adjusted annually by the 
                                Commission to reflect changes in the 
                                Consumer Price Index published by the 
                                Bureau of Labor Statistics of the 
                                Department of Labor.
                                  (II) Exception.--Subclause (I) shall 
                                not apply if the number of licensed 
                                facilities classified by the Commission 
                                as fuel facilities exceeds seven.
                                  (III) Changes to annual charges.--Any 
                                change in an annual charge under 
                                subparagraph (A) charged to a fuel 
                                facility licensee shall be based on--
                                          (aa) a change in the 
                                        regulatory services provided 
                                        with respect to the fuel 
                                        facility; or
                                          (bb) an adjustment described 
                                        in subclause (I).
                          (iii) Waiver.--The Commission may waive, for 
                        a period of 1 year, the cap on annual charges 
                        described in clause (i) or (ii) if the 
                        Commission submits to the Committee on 
                        Appropriations and the Committee on Environment 
                        and Public Works of the Senate and the 
                        Committee on Appropriations and the Committee 
                        on Energy and Commerce of the House of 
                        Representatives a written determination that 
                        the cap on annual charges may compromise the 
                        safety and security mission of the Commission.
                  (C) Amount per licensee.--
                          (i) In general.--The Commission shall 
                        establish by rule a schedule of annual charges 
                        fairly and equitably allocating the aggregate 
                        amount of charges described in clause (ii) 
                        among licensees and certificate holders.
                          (ii) Aggregate amount.--For purposes of this 
                        subparagraph, the aggregate amount of charges 
                        for a fiscal year shall equal an amount that 
                        approximates--
                                  (I) the amount to be collected under 
                                paragraph (1)(A) for the fiscal year; 
                                less
                                  (II) the amount of fees to be 
                                collected under paragraph (2) for the 
                                fiscal year.
                          (iii) Requirement.--The schedule of charges 
                        under clause (i)--
                                  (I) to the maximum extent 
                                practicable, shall be reasonably 
                                related to the cost of providing 
                                regulatory services; and
                                  (II) may be based on the allocation 
                                of the resources of the Commission 
                                among licensees or certificate holders 
                                or classes of licensees or certificate 
                                holders.
                  (D) Exemption.--Subparagraph (A) shall not apply to 
                the holder of any license for a federally owned 
                research reactor used primarily for educational 
                training and academic research purposes.
  (c) Performance and Reporting.--
          (1) In general.--The Commission shall develop for the 
        requested activities of the Commission--
                  (A) performance metrics; and
                  (B) milestone schedules.
          (2) Delays in issuance of final safety evaluation.--If the 
        final safety evaluation for a requested activity of the 
        Commission is not completed by the completion date required by 
        the performance metrics or milestone schedule under paragraph 
        (1), the Executive Director for Operations of the Commission 
        shall, not later than 30 days after such required completion 
        date, inform the Commission of the delay.
          (3) Delays in issuance of final safety evaluation exceeding 
        180 days.--If a final safety evaluation described in paragraph 
        (2) is not completed by the date that is 180 days after the 
        completion date required by the performance metrics or 
        milestone schedule under paragraph (1), the Commission shall 
        submit to the Committee on Environment and Public Works of the 
        Senate and the Committee on Energy and Commerce of the House of 
        Representatives a timely report describing the delay, including 
        a detailed explanation accounting for the delay and a plan for 
        timely completion of the final safety evaluation.
  (d) Accurate Invoicing.--With respect to invoices for fees charged 
under subsection (b)(2), the Commission shall--
          (1) ensure appropriate review and approval prior to the 
        issuance of invoices;
          (2) develop and implement processes to audit invoices to 
        ensure accuracy, transparency, and fairness; and
          (3) modify regulations to ensure fair and appropriate 
        processes to provide licensees and applicants an opportunity to 
        efficiently dispute or otherwise seek review and correction of 
        errors in invoices for such fees.
  (e) Report.--Not later than September 30, 2022, the Commission shall 
submit to the Committee on Appropriations and the Committee on 
Environment and Public Works of the Senate and the Committee on 
Appropriations and the Committee on Energy and Commerce of the House of 
Representatives a report describing the implementation of this section, 
including any effects of such implementation and recommendations for 
improvement.
  (f) Definitions.--In this section:
          (1) Advanced nuclear reactor.--The term ``advanced nuclear 
        reactor'' means a nuclear fission or fusion reactor, including 
        a prototype plant (as defined in sections 50.2 and 52.1 of 
        title 10, Code of Federal Regulations), with significant 
        improvements compared to commercial nuclear reactors under 
        construction as of the date of enactment of this Act, including 
        improvements such as--
                  (A) additional inherent safety features;
                  (B) significantly lower levelized cost of 
                electricity;
                  (C) lower waste yields;
                  (D) greater fuel utilization;
                  (E) enhanced reliability;
                  (F) increased proliferation resistance;
                  (G) increased thermal efficiency; or
                  (H) ability to integrate into electric and 
                nonelectric applications.
          (2) Commission.--The term ``Commission'' means the Nuclear 
        Regulatory Commission.
          (3) Corporate support costs.--The term ``corporate support 
        costs''' means expenditures for acquisitions, administrative 
        services, financial management, human resource management, 
        information management, information technology, policy support, 
        outreach, and training.
          (4) Research reactor.--The term ``research reactor'' means a 
        nuclear reactor that--
                  (A) is licensed by the Commission under section 104 
                c. of the Atomic Energy Act of 1954 (42 U.S.C. 2134(c)) 
                for operation at a thermal power level of not more than 
                10 megawatts; and
                  (B) if so licensed for operation at a thermal power 
                level of more than 1 megawatt, does not contain--
                          (i) a circulating loop through the core in 
                        which the licensee conducts fuel experiments;
                          (ii) a liquid fuel loading; or
                          (iii) an experimental facility in the core in 
                        excess of 16 square inches in cross-section.
          (5) Requested activity of the commission.--The term 
        ``requested activity of the Commission'' means--
                  (A) the processing of applications for--
                          (i) design certifications or approvals;
                          (ii) licenses;
                          (iii) permits;
                          (iv) license amendments;
                          (v) license renewals;
                          (vi) certificates of compliance; and
                          (vii) power uprates; and
                  (B) any other activity requested by a licensee or 
                applicant.
  (g) Effective Date.--This section takes effect on October 1, 2020.

SEC. 4. STUDY ON ELIMINATION OF FOREIGN LICENSING RESTRICTIONS.

  Not later than 18 months after the date of enactment of this Act, the 
Comptroller General shall transmit to Congress a report containing the 
results of a study on the feasibility and implications of repealing 
restrictions under sections 103 d. and 104 d. of the Atomic Energy Act 
of 1954 (42 U.S.C. 2133(d); 2134(d)) on issuing licenses for certain 
nuclear facilities to an alien or an entity owned, controlled, or 
dominated by an alien, a foreign corporation, or a foreign government.

SEC. 5. STUDY ON THE IMPACT OF THE ELIMINATION OF MANDATORY HEARING FOR 
                    UNCONTESTED LICENSING APPLICATIONS.

  Not later than 18 months after the date of enactment of this Act, the 
Comptroller General shall transmit to Congress a report containing the 
results of a study on the effects of eliminating the hearings required 
under section 189 a. of the Atomic Energy Act of 1954 (42 U.S.C. 
2239(a)) for an application under section 103 or section 104 b. of such 
Act for a construction permit for a facility in the absence of a 
request of any person whose interest may be affected by the proceeding.

SEC. 6. INFORMAL HEARING PROCEDURES.

  Section 189 a. of the Atomic Energy Act of 1954 (42 U.S.C. 2239(a)) 
is amended by adding at the end the following:
  ``(3) The Commission may use informal adjudicatory procedures for any 
hearing required under this section for which the Commission determines 
that adjudicatory procedures under section 554 of title 5, United 
States Code, are unnecessary.''.

SEC. 7. APPLICATION REVIEWS FOR NUCLEAR ENERGY PROJECTS.

  Section 185 of the Atomic Energy Act of 1954 (42 U.S.C. 2235) is 
amended by adding at the end the following:
  ``c. Application Reviews for Nuclear Energy Projects.--
          ``(1) Streamlining license application review.--With respect 
        to an application that is docketed seeking issuance of a 
        construction permit, operating license, or combined 
        construction permit and operating license for a production or 
        utilization facility, the Commission shall include the 
        following procedures:
                  ``(A) Undertake an environmental review process and 
                issue any draft environmental impact statement to the 
                maximum extent practicable within 24 months after the 
                application is accepted for docketing.
                  ``(B) Complete the technical review process and issue 
                any safety evaluation report and any final 
                environmental impact statement to the maximum extent 
                practicable within 42 months after the application is 
                accepted for docketing.
          ``(2) Early site permit.--
                  ``(A) Supplemental environmental impact statement.--
                In a proceeding for a combined construction permit and 
                operating license for a site for which an early site 
                permit has been issued, any environmental impact 
                statement prepared by the Commission and cooperating 
                agencies shall be prepared as a supplement to the 
                environmental impact statement prepared for the early 
                site permit.
                  ``(B) Incorporation by reference.--The supplemental 
                environmental impact statement shall--
                          ``(i) incorporate by reference the analysis, 
                        findings, and conclusions from the 
                        environmental impact statement prepared for the 
                        early site permit; and
                          ``(ii) include additional discussion, 
                        analyses, findings, and conclusions on matters 
                        resolved in the early site permit proceeding 
                        only to the extent necessary to address 
                        information that is new and significant in that 
                        the information would materially change the 
                        prior findings or conclusions.
          ``(3) Production or utilization facility located at an 
        existing site.--In reviewing an application for an early site 
        permit, construction permit, operating license, or combined 
        construction permit and operating license for a production or 
        utilization facility located at the site of a licensed 
        production or utilization facility, the Commission shall, to 
        the extent practicable, use information that was part of the 
        licensing basis of the licensed production or utilization 
        facility.
          ``(4) Regulations.--The Commission shall initiate a 
        rulemaking, not later than 1 year after the date of enactment 
        of the Nuclear Utilization of Keynote Energy Act, to amend the 
        regulations of the Commission to implement this subsection.
          ``(5) Environmental impact statement defined.--In this 
        subsection, the term `environmental impact statement' means a 
        detailed statement required under section 102(C) of the 
        National Environmental Policy Act of 1969 (42 U.S.C. 4332(C)).
          ``(6) Relationship to other law.--Nothing in this subsection 
        exempts the Commission from any requirement for full compliance 
        with section 102(2)(C) of the National Environmental Policy Act 
        of 1969 (42 U.S.C. 4332(2)(C)).''.

SEC. 8. REPORT IDENTIFYING BEST PRACTICES FOR ESTABLISHMENT AND 
                    OPERATION OF LOCAL COMMUNITY ADVISORY BOARDS.

  (a) Best Practices Report.--Not later than 18 months after the date 
of enactment of this Act, the Nuclear Regulatory Commission shall 
submit to Congress, and make publicly available, a report identifying 
best practices with respect to the establishment and operation of a 
local community advisory board to foster communication and information 
exchange between a licensee planning for and involved in 
decommissioning activities and members of the community that 
decommissioning activities may affect, including lessons learned from 
any such board in existence before the date of enactment of this Act.
  (b) Contents.--The report described in subsection (a) shall include--
          (1) a description of--
                  (A) the topics that could be brought before a local 
                community advisory board;
                  (B) how such a board's input could be used to inform 
                the decision-making processes of stakeholders for 
                various decommissioning activities;
                  (C) what interaction such a board could have with the 
                Nuclear Regulatory Commission and other Federal 
                regulatory bodies to support the board members' overall 
                understanding of the decommissioning process and 
                promote dialogue between the affected stakeholders and 
                the licensee involved in decommissioning activities; 
                and
                  (D) how such a board could offer opportunities for 
                public engagement throughout all phases of the 
                decommissioning process;
          (2) a discussion of the composition of a local community 
        advisory board; and
          (3) best practices relating to the establishment and 
        operation of a local community advisory board, including--
                  (A) the time of establishment of such a board;
                  (B) the frequency of meetings of such a board;
                  (C) the selection of board members;
                  (D) the term of board members;
                  (E) the responsibility for logistics required to 
                support such a board's meetings and other routine 
                activities; and
                  (F) any other best practices relating to such a local 
                community advisory board that are identified by the 
                Commission.
  (c) Consultation.--In developing the report described in subsection 
(a), the Nuclear Regulatory Commission shall consult with any host 
State, any community within the emergency planning zone of an 
applicable nuclear facility, and any existing local community advisory 
board.

SEC. 9. REPORT ON STUDY RECOMMENDATIONS.

  Not later than 90 days after the date of enactment of this Act, the 
Nuclear Regulatory Commission shall submit to Congress a report on the 
status of addressing and implementing the recommendations contained in 
the memorandum of the Executive Director of Operations of the 
Commission entitled ``Tasking in Response to the Assessment of the 
Considerations Identified in a `Study of Reprisal and Chilling Effect 
for Raising Mission-Related Concerns and Differing Views at the Nuclear 
Regulatory Commission''' and dated June 19, 2018 (ADAMS Accession No.: 
ML18165A296).

                          Purpose and Summary

    H.R. 1320 was introduced on March 2, 2017, by Rep. Adam 
Kinzinger (R-IL) with Rep. Mike Doyle (D-PA). The legislation 
addresses the Nuclear Regulatory Commission's (NRC) budget 
development and fee recovery process, in addition to regulatory 
and licensing requirements for civil nuclear facilities.

                  Background and Need for Legislation

    The Atomic Energy Act of 1954, as amended, (AEA) is the 
principal legislation governing the licensing, oversight, and 
regulation of civil nuclear technology. The AEA allows for 
peaceful, civilian use of atomic energy, specifically noting 
that ``the development, use, and control of atomic energy shall 
be directed so as to promote world peace, improve the general 
welfare, increase the standard of living, and strengthen free 
competition in private enterprise.''\1\ The law's many broad 
provisions govern all aspects of nuclear technology, licensing, 
oversight, and regulation of domestic civil nuclear facilities. 
The ``reasonable assurance'' regulatory standard remains the 
foundation of the regulatory requirements on civilian nuclear 
licensees.
---------------------------------------------------------------------------
    \1\Atomic Energy Act of 1954, P.L. 83-703.
---------------------------------------------------------------------------
    The AEA established and granted authority to the Atomic 
Energy Commission (AEC) to oversee the government's nuclear 
programs and was charged with both regulating government and 
commercial nuclear facilities, as well as fulfilling the U.S. 
policy goals to ``develop, use, and control'' atomic energy to 
``make the maximum contribution to the general welfare . . . 
.''\2\ The regulatory framework established in the AEA remains 
the ``fundamental U.S. law on both the civilian and military 
uses of nuclear materials.''\3\
---------------------------------------------------------------------------
    \2\42 U.S.C. 2011.
    \3\https://www.nrc.gov/about-nrc/governing-laws.html.
---------------------------------------------------------------------------
    During the development and maturation of the commercial 
nuclear industry, Congress and the public developed concerns 
about the lack of AEC's role as an independent safety 
regulator. In response, Congress passed the Energy 
Reorganization Act in 1974 to establish the NRC, as well as the 
Energy Research and Development Administration, the Department 
of Energy's predecessor organization.
    Today, the NRC continues to serve as an independent 
regulatory agency ``to ensure the safe use of radioactive 
materials for beneficial civilian purposes while protecting 
people and the environment.'' The NRC's mission is to 
``licens[e] and regulat[e] the Nation's civilian use of 
radioactive materials to protect public health and safety, 
promote the common defense and security, and protect the 
environment.''\4\
---------------------------------------------------------------------------
    \4\U.S. Nuclear Regulatory Commission, ``About the NRC,'' Updated 
January 26, 2018. Accessible at: https://www.nrc.gov/about-nrc.html.
---------------------------------------------------------------------------

Nuclear Regulatory Commission user fees

    Under authority granted to the NRC pursuant to the 
Independent Offices Appropriations Act of 1952, the Commission 
charged an hourly fee, known as the ``Part 170'' fee for the 
chapter of the fee description in Title 10 of the Code of 
Federal Regulations. The Part 170 fee was charged to NRC 
licensees or applicants for specific actions by Commission 
staff and varied with the relative workload. For example, the 
Part 170 fees provided 45 percent of the NRC's budget authority 
in fiscal years 1988 and 1989, but the total level of license 
specific work was trending down due to cancelled reactor orders 
following the Three Mile Island incident coupled with increased 
reactor costs.
    The budget resolution for fiscal year 1990 instructed the 
authorizing committees of jurisdiction to provide for deficit 
reduction through increased NRC user fees. H.R. 1549, the 
Nuclear Regulatory Commission Authorization Act for Years 1990 
and 1991, and subsequently the Omnibus Budget Reconciliation 
Act of 1990 (OBRA 90), required the NRC to fully recover its 
budget authority in a fiscal year through Part 170 fees and 
additional annual charges. The annual charges are known as 
``Part 171'' fees, which include nuclear materials licensees, 
as well as operating reactors, decommissioned sites, fuel cycle 
facilities, and other miscellaneous licensee classes.
    Congress amended the fee recovery in 2000 to reduce 
incrementally the fee recovery threshold from 100 percent to 90 
percent and excluded certain fees not directly attributable to 
NRC applicants or licensees, such as appropriations made from 
the Nuclear Waste Fund or for generic homeland security 
activities. In 2005, 107 operating reactors provided about 75 
percent of the NRC's total budget authority and paid an annual 
fee of about $3.1 million.
    From 2005 through 2010, the NRC's budget increased 59 
percent in anticipation of increased workload, which did not 
materialize.
    Due to a confluence of energy market and infrastructure 
challenges, nine reactors have ceased commercial operation 
since 2005 and 12 more reactors are expected to cease operation 
by 2025. As operating nuclear reactors enter the 
decommissioning phase, the NRC must recover budget authority 
from fewer reactors, thereby increasing financial strains on 
the commercial nuclear power industry.

Current status of NRC fee and budget process

    Due to the statutory requirement to recover what is 
essentially an arbitrary percentage of 90 percent of total 
budget authority, when Part 171 annual charges decrease, the 
Commission must increase the hourly charge for the Part 170 
fees. For example, the fiscal year 2018 NRC fee schedule 
resulted in an increase of the professional hourly rate from 
$263 to $275 due ``primarily to the 7.3 percent decline'' in 
staff.\5\ Therefore, because fewer staff have to recover the 
same level of budget authority as a result of certain fixed 
costs, the NRC increased the total rate. The sole uranium 
conversion fuel cycle facility was in standby operation during 
fiscal year 2018; however, NRC's Part 171 annual charge for 
that facility increased by $20,000 because the NRC did not 
charge the same level of Part 170 fees due to the status of the 
facility. The Committee heard testimony that this structure has 
placed an increasing financial strain on the industry.
---------------------------------------------------------------------------
    \5\Nuclear Regulatory Commission, ``Revision of Fee Schedules: Fee 
Recovery for Fiscal Year 2018.''
---------------------------------------------------------------------------
    In testimony before the Subcommittee on Energy, NRC 
Chairman Svinicki noted, based on her ten-year service with the 
Commission, ``that the potential wave of retirements is 
noticeable and appreciable, and although I don't know at what 
point the number of operating reactors has diminished so far 
that the 90 percent fee recovery is not sustainable. I think 
that the predicted number of potential shutdowns does make this 
a timely issue for the Commission and the Congress to engage on 
a dialogue on this--on this matter.''\6\ In the same hearing, 
Commissioner Baran also noted that the Commission would be 
challenged if a large number of plants were to shut down.
---------------------------------------------------------------------------
    \6\Committee on Energy and Commerce, Subcommittee on Energy and 
Subcommittee on Environment, ``Fiscal Year 2019 Nuclear Regulatory 
Commission Budget,'' March 20, 2018.
---------------------------------------------------------------------------
    NRC's documented lack of data, processes, and transparency 
limits the Commission's ability to efficiently manage the 
organization's finances. At the request of the Committee, the 
Government Accountability Office consistently identified a need 
to improve the Commission's budget process and made 
recommendations to address those findings. GAO found NRC lacked 
transparency in its annual fee rule and recommended the 
establishment of performance goals.\7\ Another GAO review found 
licensees did not have adequate information in NRC billing and 
invoicing process and recommended NRC advance an electronic 
billing system.\8\ In 2017, GAO also found that NRC's workforce 
was not properly managed, leading to unknown workforce costs 
and projections.\9\
---------------------------------------------------------------------------
    \7\Government Accountability Office, ``Nuclear Regulatory 
Commission: Regulatory Fee-Setting Calculations Need Greater 
Transparency,'' GAO-17-232. February 2017.
    \8\Government Accountability Office, ``Nuclear Regulatory 
Commission: Additional Action Needed to Improve Process for Billing 
Licensees,'' GAO-18-318. March 2018.
    \9\Government Accountability Office, ``Strategic Human Capital 
Management: NRC Could Better Manage the Size and Composition of its 
Workforce by Further Incorporating Leading Practices,'' GAO-17-233. 
April 2017.
---------------------------------------------------------------------------

H.R. 1320 provisions

    The Nuclear Utilization of Keynote Energy Act replaces the 
existing statutory fee recovery requirements with a more robust 
and transparent process, which will result in a more efficient, 
predictable, and accountable regulator. Specifically, section 3 
sets a defined process relating to all stages of NRC's 
financial management system. These stages include a clear 
identification of priority activities that directly support 
NRC's regulation of licensees, predictability in annual charges 
for operating reactors and fuel cycle facilities, transparency 
and a dispute resolution process for NRC's billing and 
invoicing process, and elimination of the 90 percent recovery 
requirement to exclude costs not directly attributable to a 
licensee.
    The AEA was enacted when very few countries maintained a 
civil nuclear energy program and the United States' commercial 
industry lacked significant operating experience. Legacy 
provisions in the AEA are not reflective of the existing 
markets and technology. Due to the international markets and 
proliferation risks, Congress prohibited any foreign entity 
from holding an ownership, controlling, or dominating position 
of a civil nuclear facility. Since the AEA became law, 
additional reviews of foreign investment have been established, 
such as the Committee to Review Foreign Investment in the 
United States. Section 4 of H.R. 1320 requires GAO to determine 
what the potential implications are of removing this Cold War-
era provision.
    Similarly, section 5 requires a GAO study on eliminating 
the AEA provision that requires a public hearing even when 
there is not a request for such a hearing. This process was 
necessary for the AEC while the civilian nuclear industry 
matured through the 1960s and 1970s.
    The current NRC license application and review process for 
operating nuclear power reactors requires extensive scientific 
and technical analysis. The analysis for various licensing 
stages, including an early site permit, a combined construction 
and operating license, and design certification for reactors, 
result in major costs and often take multiple years to process 
by NRC staff. Section 7 makes targeted changes to NRC's license 
review process, which should result in significant efficiency 
improvements. The bill sets timelines for action on draft 
environmental impact statements (EIS), the technical review 
process and safety evaluation reports, and final EIS. The 
Committee expects the NRC to be able to meet the 24 and 42-
month deadlines, unless unexpected action requires additional 
time. NRC's recent revision to require additional information 
included for permits and licenses prior to accepting and 
docketing such permit or license allow these respective 
timelines to be easily achieved.
    The Committee acknowledges the hardships that may be 
imposed on local communities hosting a nuclear power plant that 
ceases commercial operation. School districts, local economic 
development, and village support services are all affected by 
the loss of tax revenue and jobs. The report required in 
section 8 is intended to provide a ``lessons learned'' report 
to include best practices for how to mitigate those adverse 
impacts through the establishment of local community advisory 
boards.

                            Committee Action

    On May 22, 2018, the Subcommittee on Energy held a hearing 
on H.R. 1320. The Subcommittee received testimony from:
           Brent Park, Deputy Administrator for Defense 
        Nuclear Nonproliferation, National Nuclear Security 
        Administration, Department of Energy;
           Ed McGinnis, Principal Deputy Assistant 
        Secretary, Office of Nuclear Energy, Department of 
        Energy;
           Jeffrey S. Merrifield, Partner, Pillsbury 
        Winthrop Shaw Pittman LLP; Advisor, ClearPath 
        Foundation;
           Melissa Mann, President, URENCO USA, Inc.; 
        Member, U.S. Nuclear Industry Council;
           Nick Irvin, Director, Research and 
        Development for Strategy and Advanced Nuclear 
        Technology, Southern Company; Member, Advanced Reactor 
        Working Group, Nuclear Energy Institute; and,
           Edwin Lyman, Senior Scientist, Global 
        Security Program, Union of Concerned Scientists.
    On June 21, 2018 the Subcommittee on Energy met in open 
markup session and forwarded H.R. 1320, as amended, to the full 
Committee by a voice vote. On July 12, 2018, the full Committee 
on Energy and Commerce met in open markup session and ordered 
H.R. 1320, as amended, favorably reported to the House by a 
voice vote.

                            Committee Votes

    Clause 3(b) of rule XIII requires the Committee to list the 
record votes on the motion to report legislation and amendments 
thereto. There were no record votes taken in connection with 
ordering H.R. 1320 reported.

                 Oversight Findings and Recommendations

    Pursuant to clause 2(b)(1) of rule X and clause 3(c)(1) of 
rule XIII, the Committee held a hearing and made findings that 
are reflected in this report.

   New Budget Authority, Entitlement Authority, and Tax Expenditures

    Pursuant to clause 3(c)(2) of rule XIII, the Committee 
finds that H.R. 1320 would result in no new or increased budget 
authority, entitlement authority, or tax expenditures or 
revenues.

                  Congressional Budget Office Estimate

    Pursuant to clause 3(c)(3) of rule XIII, the following is 
the cost estimate provided by the Congressional Budget Office 
pursuant to section 402 of the Congressional Budget Act of 
1974:

                                     U.S. Congress,
                               Congressional Budget Office,
                                   Washington, DC, August 30, 2018.
Hon. Greg Walden,
Chairman, Committee on Energy and Commerce,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 1320, the Nuclear 
Utilization of Keynote Energy Act.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Megan 
Carroll.
            Sincerely,
                                                Keith Hall,
                                                          Director.
    Enclosure.

H.R. 1320--Nuclear Utilization of Keynote Energy Act

    Summary: The Nuclear Regulatory Commission (NRC) licenses 
and regulates commercial nuclear power plants and other 
facilities that use radioactive materials. Under current law, 
the agency is required to recover most of its funding through 
fees charged to entities it regulates. H.R. 1320 would modify 
the formula used to determine the amount of those fees. The 
bill also would modify procedures related to NRC's review of 
applications for certain permits and licenses and allow the 
agency to conduct, on an informal basis, any type of hearing 
requested to review the agency's actions or decisions. H.R. 
1320 also would require the NRC and the Government 
Accountability Office (GAO) to complete a variety of studies 
and reports on nuclear-related issues.
    Using information from the NRC, CBO estimates that 
implementing H.R. 1320 would cost $28 million over the 2019-
2023 period, subject to the availability of appropriated funds.
    Enacting the bill would not affect direct spending or 
revenues; therefore, pay-as-you-go procedures do not apply.
    CBO estimates that enacting H.R. 1320 would not increase 
net direct spending or on-budget deficits in any of the four 
consecutive 10-year periods beginning in 2029.
    H.R. 1320 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 effect of H.R. 1320 is shown in the following table. 
The costs of the legislation fall within budget function 270 
(energy).

----------------------------------------------------------------------------------------------------------------
                                                                   By fiscal year, in millions of dollars--
                                                            ----------------------------------------------------
                                                              2018   2019   2020   2021   2022   2023  2019-2023
----------------------------------------------------------------------------------------------------------------
                                 INCREASES IN SPENDING SUBJECT TO APPROPRIATION
 
Estimated Authorization Level..............................      0      0      0     10     11     11         32
Estimated Outlays..........................................      0      0      0      7     10     11         28
----------------------------------------------------------------------------------------------------------------

    Basis of estimate: The NRC is statutorily required to 
offset most of its funding, which is provided in annual 
appropriation acts, through fees charged to the entities it 
regulates. Under permanent law, some funding is excluded (or 
exempt) from that cost-recovery requirement--primarily, funding 
for certain activities related to defense or homeland security 
and appropriations from the Nuclear Waste Fund to support 
activities related to nuclear waste disposal. Ninety percent of 
the remaining appropriation is offset by two types of fees:
           Cost recovery fees charged to individual 
        applicants and licensees to cover NRC's costs of 
        providing services or things of value, and
           Annual fees assessed on all licensees at 
        rates necessary to ensure that the aggregate amount of 
        fees collected for a given year meets that year's 
        target.
    The remaining 10 percent of nonexempt funding is not offset 
by fees. The NRC refers to the activities funded with that 
portion of funding as ``fee relief' activities that are not 
directly attributable to existing licensees or that involve 
costs that are not recoverable under NRC policies.\10\
---------------------------------------------------------------------------
    \10\For details on fee-relief activities in 2018, see Revision of 
Fee Schedules, Fee Recovery for Fiscal Year 2018, 83 Fed Reg 122 (final 
rule, June 25, 2018), https://www.gpo.gov/fdsys/pkg/FR-2018-06-25/pdf/
2018-13320.pdf.
---------------------------------------------------------------------------
    Starting in 2021, H.R. 1320 would specify a new formula for 
the NRC to follow in setting fees. The bill would expand the 
scope of funding that is exempt from the cost-recovery 
requirement to include appropriations for activities related to 
developing a regulatory infrastructure for advanced nuclear 
reactor technologies. The bill also would exempt funding for 
any activities that the NRC identifies as eligible for fee 
relief. Under the bill, after backing out funding for excluded 
activities, the NRC would be required to offset approximately 
100 percent of the remaining funding through fees.
    Permanently exempting funding related to developing a 
regulatory infrastructure for advanced nuclear technologies 
from the NRC's cost-recovery requirement would effectively 
authorize appropriations from the general fund for that purpose 
starting in 2021. (The Consolidated Appropriations Act, 2018, 
provided $10 million for such activities and exempted that 
amount from the NRC's cost-recovery requirement for 2018; 
however, that exemption is only in effect for that year.) 
Assuming that future appropriations to develop that regulatory 
framework remain in line with current amounts, CBO estimates 
that outlays stemming from such funding would total $28 million 
over the 2021-2023 period.
    In contrast, CBO does not expect that permanently excluding 
funding for activities that the NRC identifies as eligible for 
fee relief from the cost-recovery requirement, in conjunction 
with the requirement that the NRC offset approximately 100 
percent of all nonexempt funding, would materially affect 
spending for fee-relief activities, the aggregate amount of 
fees collected for a given year, or the proportion of overall 
funding that is not offset by those fees. Historically, the 
amount of funding that the NRC allocates for activities 
designated as fee relief has been close to, but not necessarily 
equal to, the 10 percent of nonexempt funding that is not 
currently offset by fees. Any difference between those amounts 
results in an adjustment (either an increase or decrease) to 
all licensees' annual fees to ensure compliance with the NRC's 
collection target. Under H.R. 1320, CBO expects that overall 
results would be similar--that is, annual fees could be higher 
or lower based on the amount of funding allocated for fee 
relief activities. Assuming that such funding remains in line 
with historical levels, CBO expects that the results of the 
proposed formula for collecting fees under H.R. 1320 would not 
differ markedly from the existing formula.
    More broadly, under current law or H.R. 1320, the amount of 
fees collected in future years will depend on the level of 
funding provided for a range of specific NRC activities. 
Because CBO has no basis for predicting how much funding will 
be provided for such activities in future years, CBO cannot 
determine whether the resulting fees, in aggregate, would be 
higher or lower under H.R. 1320 than under current law.
    Finally, CBO estimates that any increase in NRC's or GAO's 
costs to meet new reporting requirements under H.R. 1320--which 
would be subject to appropriation--would not exceed $500,000 
annually.
    Pay-As-You-Go considerations: None.
    Increase in long-term direct spending and deficits: CBO 
estimates that enacting H.R. 1320 would not increase net direct 
spending or on-budget deficits in any of the four consecutive 
10-year periods beginning in 2029.
    Mandates: H.R. 1320 contains no intergovernmental or 
private-sector mandates as defined in UMRA.
    Previous CBO estimate: On June 20, 2017, CBO transmitted a 
cost estimate for S. 512, the Nuclear Energy Innovation and 
Modernization Act, as reported by the Senate Committee on 
Environment and Public Works on May 25, 2017. Both S. 512 and 
H.R. 1320 would make similar modifications to the NRC's cost-
recovery formula, and both cost estimates reflect an increase 
in spending subject to appropriation for activities related to 
developing a regulatory infrastructure for advanced nuclear 
reactors. Differences in our estimates of budgetary effects 
attributable to proposed changes in the cost-recovery formula 
reflect differences in when that formula would take effect.
    Estimate prepared by: Federal costs: Megan Carroll; 
Mandates: Jon Sperl.
    Estimate reviewed by: Kim P. Cawley, Chief, Natural and 
Physical Resources Cost Estimates Unit; H. Samuel Papenfuss, 
Deputy Assistant Director for Budget Analysis.

                       Federal Mandates Statement

    The Committee adopts as its own the estimate of Federal 
mandates prepared by the Director of the Congressional Budget 
Office pursuant to section 423 of the Unfunded Mandates Reform 
Act.

         Statement of General Performance Goals and Objectives

    Pursuant to clause 3(c)(4) of rule XIII, the general 
performance goal or objective of this legislation is to 
increase transparency, predictability, efficiency of the 
regulation of commercial nuclear industry.

                    Duplication of Federal Programs

    Pursuant to clause 3(c)(5) of rule XIII, no provision of 
H.R. 1320 is known to be duplicative of another Federal 
program, including any program that was included in a report to 
Congress pursuant to section 21 of Public Law 111-139 or the 
most recent Catalog of Federal Domestic Assistance.

                        Committee Cost Estimate

    Pursuant to clause 3(d)(1) of rule XIII, the Committee 
adopts as its own the cost estimate prepared by the Director of 
the Congressional Budget Office pursuant to section 402 of the 
Congressional Budget Act of 1974.

       Earmark, Limited Tax Benefits, and Limited Tariff Benefits

    Pursuant to clause 9(e), 9(f), and 9(g) of rule XXI, the 
Committee finds that H.R. 1320 contains no earmarks, limited 
tax benefits, or limited tariff benefits.

                  Disclosure of Directed Rule Makings

    Pursuant to section 3(i) of H. Res. 5, the following 
directed rule makings are contained in H.R. 1320:
           The Commission must amend the regulations to 
        implement section 7 of H.R. 1320 with respect to 
        application reviews for nuclear energy projects.

                      Advisory Committee Statement

    No advisory committees within the meaning of section 5(b) 
of the Federal Advisory Committee Act were created by this 
legislation.

                  Applicability to Legislative Branch

    The Committee finds that the legislation does not relate to 
the terms and conditions of employment or access to public 
services or accommodations within the meaning of section 
102(b)(3) of the Congressional Accountability Act.

             Section-by-Section Analysis of the Legislation


Section 1. Short title

    This section provides a short title of ``Nuclear 
Utilization of Keynote Energy Act.''

Section 2. Nuclear Regulatory Commission User Fees and Annual Charges 
        Through Fiscal Year 2020.

    This section amends section 6101(c)(2)(A) of the Omnibus 
Budget Reconciliation Act of 1990 to exempt funds made 
available for the NRC for the development of a regulatory 
infrastructure for advanced nuclear reactors from the statutory 
fee recovery requirements. The section is repealed on October 
1, 2020.

Section 3. Nuclear Regulatory Commission user fees and annual charges 
        for fiscal year 2021 and each fiscal year thereafter

    This section establishes requirements relating to the NRC's 
annual Congressional budget justification, assessments for fees 
and charges, and performance and reporting of licensing 
actions. Section 3(a) requires the Commission to identify 
funding necessary for completion of requested activities of the 
Commission during the applicable fiscal year. Funding made 
available for those activities in the applicable fiscal year 
should be used for the anticipated expenditures. In the 
Commission's budget justification, corporate support costs 
shall not exceed, as a percentage of total budget authority 
requested, 30 percent for each of the fiscal years 2021 and 
2022, 29 percent for each of the fiscal years 2023 and 2024, 
and 28 percent for fiscal year 2025 and each year thereafter.
    Section 3(b) requires the Commission to assess and collect 
fees and charges equal to the total budget authority of the 
Commission in each fiscal year, minus the costs of certain 
excluded activities. The excluded activities are (1) any fee-
relief activity, as identified by the Commission; (2) amounts 
appropriated from the Nuclear Waste Fund; (3) for 
implementation of section 3116 of the Ronald Reagan National 
Defense Authorization Act of 2005; (4) for homeland security 
activities of the Commission; (5) for the Inspector General 
provided to the Defense Nuclear Facilities Safety Board; (6) 
for partnership programs with institutions of higher education; 
(7) for scholarship and fellowship programs; and (8) costs for 
activities related to the development of regulatory 
infrastructure for advanced nuclear reactor technologies. The 
Commission shall assess and collect fees from any person who 
receives a service or thing of value to cover the costs of the 
Commission. The Commission shall establish a schedule of annual 
charges among licensees and certificate holders of the 
Commission. The annual charge for operating reactors shall not 
exceed the annual fee established for fiscal year 2015, unless 
the Commission issues a written determination that the cap may 
compromise the safety and security mission of the Commission. 
The aggregate annual charges for fuel facilities may not exceed 
the level established for fiscal year 2016 and charges to fuel 
cycle facility licensees must be commensurate with a change in 
Commission activity for such facility. The schedule of charges 
shall be based on the cost of providing regulatory services and 
may be based on the allocation of the resources of the 
Commission among licensees or certificate holders or classes of 
licensees or certificate holders.
    Section 3(c) directs the Commission to develop performance 
metrics and milestone schedules for requested activities of the 
Commission. If the milestone schedule is not met for a final 
safety evaluation, the NRC Executive Director of Operations 
shall notify the Commission within 30 days. If the milestone 
schedule for the final safety evaluation is not completed by 
180 days from the schedule, the Commission shall notify 
Congress describing the delay, a detailed explanation 
accounting for the delay, and a plan for timely completion for 
the final safety evaluation.
    Section 3(d) requires the Commission to ensure fees charged 
have processes established for an appropriate review and 
approval of invoices; to audit invoices to ensure accuracy, 
transparency, and fairness; and to provide licensees and 
applicants to dispute or otherwise seek review and correction 
of errors in invoices for such fees.
    Section 3(e) directs the Commission to submit a report to 
the Committee on Appropriations and Committee on Environment 
and Public Works of the Senate and the Committee on 
Appropriations and the Committee on Energy and Commerce of the 
House of Representatives describing the implementation of this 
section, including any effects of such implementation and 
recommendations for improvement.
    Section 3(f) defines the terms ``advanced nuclear 
reactor''; ``Commission''; ``corporate support costs''; 
``research reactor''; and ``requested activity of the 
Commission.''
    Section 3(g) sets the effective date for the section on 
October 1, 2020.

Section 4. Study on elimination of foreign licensing restrictions

    Section 4 requires the Comptroller General to transmit a 
report to Congress on the feasibility and implications of 
repealing restrictions under sections 103d and 104d of the 
Atomic Energy Act of 1954 on issuing licenses for certain 
nuclear facilities to an alien or an entity owned, controlled, 
or dominated by an alien, a foreign corporation, or a foreign 
government.

Section 5. Study on the impact of the elimination of mandatory hearing 
        for uncontested licensing applications

    Section 5 requires the Comptroller General to transmit a 
report to Congress on the effects of eliminating hearings 
required under section 189a of the Atomic Energy Act of 1954 
for an application under section 103 or section 104b for a 
construction permit for a facility in the absence of a request 
of any person whose interest may be affected by the proceeding.

Section 6. Informal hearing procedures

    Section 6 amends section 189a of the Atomic Energy Act of 
1954 to allow the Commission to use informal adjudicatory 
procedures for any hearing for which the Commission determines 
that adjudicatory procedures under section 554 of title 5 of 
the United States Code are unnecessary.

Section 7. Application reviews for nuclear energy projects

    Section 7 amends section 185 of the Atomic Energy Act of 
1954 to direct the Commission to establish procedures that a 
draft environmental impact statement is issued within 24 months 
after the application is accepted for docketing and the 
technical review process, final safety evaluation report, and 
final environmental impact statement are completed within 42 
months of the application being accepted for docketing. 
Proceedings for a combined construction permit and operating 
license for a site in which an early site permit has been 
issued shall be prepared as a supplement to the early site 
permit environmental impact statement. A supplemental 
environmental impact statement shall incorporate by reference 
information prepared from the early site permit and include 
additional discussion, analyses, findings, and conclusions on 
matters resolved in the early site permit only to the extent 
necessary to address information that is new and significant in 
that information would materially change the prior findings or 
conclusions.
    The procedures established under the Atomic Energy Act 
shall require that an application for an early site permit, 
construction permit, operating license, or combined 
construction permit and operating license at a site of a 
licensed facility shall use the part of the licensing basis of 
the existed production or utilization facility.
    The Commission shall initiate not later than 1 year after 
the date of enactment of the Nuclear Utilization of Keynote 
Energy Act to implement the procedures in this section. For the 
purposes of this section, the term ``environmental impact 
statement'' means a detailed statement required under section 
103(C) of the National Environmental Policy Act of 1969. 
Nothing contained in this subsection exempts the Commission 
from the requirements of the National Environmental Policy Act 
of 1969.

Section 8. Report identifying best practices for establishment and 
        operation of local community advisory boards

    Section 8 requires the Commission to submit to Congress, 
not later than 18 months after the date of enactment, a report 
identifying best practices with respect to the establishment 
and operation of a local community advisory board for 
communities that may be affected by a decommissioning nuclear 
power plant.

Section 9. Report on study recommendations

    Section 9 requires the Commission to submit a report not 
later than 90 days after enactment to Congress on the status of 
addressing and implementing recommendations contained in the 
memorandum dated June 19, 2018 on effects of reprisal and 
raising differing views.

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italic, and existing law in which no 
change is proposed is shown in roman):

               OMNIBUS BUDGET RECONCILIATION ACT OF 1990




           *       *       *       *       *       *       *
TITLE VI--ENERGY AND ENVIRONMENTAL PROGRAMS

           *       *       *       *       *       *       *


SEC. 6101. NRC USER FEES AND ANNUAL CHARGES.

  (a) Annual Assessment.--
          (1) In general.--The Nuclear Regulatory Commission 
        (in this section referred to as the ``Commission'') 
        shall annually assess and collect such fees and charges 
        as are described in subsections (b) and (c).
          (2) First assessment.--The first assessment of fees 
        under subsection (b) and annual charges under 
        subsection (c) shall be made not later than September 
        30, 1991.
  (b) Fees for Service or Thing of Value.--Pursuant to section 
9701 of title 31, United States Code, any person who receives a 
service or thing of value from the Commission shall pay fees to 
cover the Commission's costs in providing any such service or 
thing of value.
  (c) Annual Charges.--
          (1) Persons subject to charge.--Except as provided in 
        paragraph (4), any licensee or certificate holder of 
        the Commission may be required to pay, in addition to 
        the fees set forth in subsection (b), an annual charge.
          (2) Aggregate amount of charges.--
                  (A) In general.--The aggregate amount of the 
                annual charges collected from all licensees and 
                certificate holders in a fiscal year shall 
                equal an amount that approximates the 
                percentages of the budget authority of the 
                Commission for the fiscal year stated in 
                subparagraph (B), less--
                          (i) amounts collected under 
                        subsection (b) during the fiscal year;
                          (ii) amounts appropriated to the 
                        Commission from the Nuclear Waste Fund 
                        for the fiscal year;
                          (iii) amounts appropriated to the 
                        Commission for the fiscal year for 
                        implementation of section 3116 of the 
                        Ronald W. Reagan National Defense 
                        Authorization Act for Fiscal Year 2005; 
                        [and]
                          (iv) amounts appropriated to the 
                        Commission for homeland security 
                        activities of the Commission for the 
                        fiscal year, except for the costs of 
                        fingerprinting and background checks 
                        required by section 149 of the Atomic 
                        Energy Act of 1954 (42 U.S.C. 2169) and 
                        the costs of conducting security 
                        inspections[.]; and
                          (v) amounts appropriated to the 
                        Commission for the fiscal year for 
                        activities related to the development 
                        of a regulatory infrastructure for 
                        advanced nuclear reactor technologies.
                  (B) Percentages.--The percentages referred to 
                in subparagraph (A) are--
                          (i) 98 percent for fiscal year 2001;
                          (ii) 96 percent for fiscal year 2002;
                          (iii) 94 percent for fiscal year 
                        2003;
                          (iv) 92 percent for fiscal year 2004; 
                        and
                          (v) 90 percent for fiscal year 2005 
                        and each fiscal year thereafter and 
                        fiscal year 2006.
          (3) Amount per licensee.--The Commission shall 
        establish, by rule, a schedule of charges fairly and 
        equitably allocating the aggregate amount of charges 
        described in paragraph (2) among licensees. To the 
        maximum extent practicable, the charges shall have a 
        reasonable relationship to the cost of providing 
        regulatory services and may be based on the allocation 
        of the Commission's resources among licensees or 
        classes of licensees.
          (4) Exemption.--
                  (A) In general.--Paragraph (1) shall not 
                apply to the holder of any license for a 
                federally owned research reactor used primarily 
                for educational training and academic research 
                purposes.
                  (B) Research reactor.--For purposes of 
                subparagraph (A), the term ``research reactor'' 
                means a nuclear reactor that--
                          (i) is licensed by the Nuclear 
                        Regulatory Commission under section 104 
                        c. of the Atomic Energy Act of 1954 (42 
                        U.S.C. 2134(c)) for operation at a 
                        thermal power level of 10 megawatts or 
                        less; and
                          (ii) if so licensed for operation at 
                        a thermal power level of more than 1 
                        megawatt, does not contain--
                                  (I) a circulating loop 
                                through the core in which the 
                                licensee conducts fuel 
                                experiments;
                                  (II) a liquid fuel loading; 
                                or
                                  (III) an experimental 
                                facility in the core in excess 
                                of 16 square inches in cross-
                                section.
  (d) Definition.--As used in this section, the term ``Nuclear 
Waste Fund'' means the fund established pursuant to section 
302(c) of the Nuclear Waste Policy Act of 1982 (42 U.S.C. 
10222(c)).
  (e) Conforming Amendment to COBRA.--[Omitted--Amends other 
law]
  [Effective October 1, 2020, section 2(b) of H.R. 1320 (as 
reported) provides for an amendment to repeal section 6101 of 
the Omnibus Budget Reconciliation Act of 1990. Upon such date, 
section 6101 of such Act, as amended by section 2(a) of H.R. 
1320 (as reported), is repealed as follows.]

[SEC. 6101. NRC USER FEES AND ANNUAL CHARGES.

  [(a) Annual Assessment.--
          [(1) In general.--The Nuclear Regulatory Commission 
        (in this section referred to as the ``Commission'') 
        shall annually assess and collect such fees and charges 
        as are described in subsections (b) and (c).
          [(2) First assessment.--The first assessment of fees 
        under subsection (b) and annual charges under 
        subsection (c) shall be made not later than September 
        30, 1991.
  [(b) Fees for Service or Thing of Value.--Pursuant to section 
9701 of title 31, United States Code, any person who receives a 
service or thing of value from the Commission shall pay fees to 
cover the Commission's costs in providing any such service or 
thing of value.
  [(c) Annual Charges.--
          [(1) Persons subject to charge.--Except as provided 
        in paragraph (4), any licensee or certificate holder of 
        the Commission may be required to pay, in addition to 
        the fees set forth in subsection (b), an annual charge.
          [(2) Aggregate amount of charges.--
                  [(A) In general.--The aggregate amount of the 
                annual charges collected from all licensees and 
                certificate holders in a fiscal year shall 
                equal an amount that approximates the 
                percentages of the budget authority of the 
                Commission for the fiscal year stated in 
                subparagraph (B), less--
                          [(i) amounts collected under 
                        subsection (b) during the fiscal year;
                          [(ii) amounts appropriated to the 
                        Commission from the Nuclear Waste Fund 
                        for the fiscal year;
                          [(iii) amounts appropriated to the 
                        Commission for the fiscal year for 
                        implementation of section 3116 of the 
                        Ronald W. Reagan National Defense 
                        Authorization Act for Fiscal Year 2005;
                          [(iv) amounts appropriated to the 
                        Commission for homeland security 
                        activities of the Commission for the 
                        fiscal year, except for the costs of 
                        fingerprinting and background checks 
                        required by section 149 of the Atomic 
                        Energy Act of 1954 (42 U.S.C. 2169) and 
                        the costs of conducting security 
                        inspections; and
                          [(v) amounts appropriated to the 
                        Commission for the fiscal year for 
                        activities related to the development 
                        of a regulatory infrastructure for 
                        advanced nuclear reactor technologies.
                  [(B) Percentages.--The percentages referred 
                to in subparagraph (A) are--
                          [(i) 98 percent for fiscal year 2001;
                          [(ii) 96 percent for fiscal year 
                        2002;
                          [(iii) 94 percent for fiscal year 
                        2003;
                          [(iv) 92 percent for fiscal year 
                        2004; and
                          [(v) 90 percent for fiscal year 2005 
                        and each fiscal year thereafter and 
                        fiscal year 2006.
          [(3) Amount per licensee.--The Commission shall 
        establish, by rule, a schedule of charges fairly and 
        equitably allocating the aggregate amount of charges 
        described in paragraph (2) among licensees. To the 
        maximum extent practicable, the charges shall have a 
        reasonable relationship to the cost of providing 
        regulatory services and may be based on the allocation 
        of the Commission's resources among licensees or 
        classes of licensees.
          [(4) Exemption.--
                  [(A) In general.--Paragraph (1) shall not 
                apply to the holder of any license for a 
                federally owned research reactor used primarily 
                for educational training and academic research 
                purposes.
                  [(B) Research reactor.--For purposes of 
                subparagraph (A), the term ``research reactor'' 
                means a nuclear reactor that--
                          [(i) is licensed by the Nuclear 
                        Regulatory Commission under section 104 
                        c. of the Atomic Energy Act of 1954 (42 
                        U.S.C. 2134(c)) for operation at a 
                        thermal power level of 10 megawatts or 
                        less; and
                          [(ii) if so licensed for operation at 
                        a thermal power level of more than 1 
                        megawatt, does not contain--
                                  [(I) a circulating loop 
                                through the core in which the 
                                licensee conducts fuel 
                                experiments;
                                  [(II) a liquid fuel loading; 
                                or
                                  [(III) an experimental 
                                facility in the core in excess 
                                of 16 square inches in cross-
                                section.
  [(d) Definition.--As used in this section, the term ``Nuclear 
Waste Fund'' means the fund established pursuant to section 
302(c) of the Nuclear Waste Policy Act of 1982 (42 U.S.C. 
10222(c)).
  [(e) Conforming Amendment to COBRA.--[Omitted--Amends other 
law]]

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                       ATOMIC ENERGY ACT OF 1954

TITLE I--ATOMIC ENERGY

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CHAPTER 16. JUDICIAL REVIEW AND ADMINISTRATIVE PROCEDURE

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  Sec. 185. Construction Permits and Operating Licenses.--a. 
All applicants for licenses to construct or modify production 
or utilization facilities shall, if the application is 
otherwise acceptable to the Commission, be initially granted a 
construction permit. The construction permit shall state the 
earliest and latest dates for the completion of the 
construction or modification. Unless the construction or 
modification of the facility is completed by the completion 
date, the construction permit shall expire, and all rights 
thereunder be forfeited, unless upon good cause shown, the 
Commission extends the completion date. Upon the completion of 
the construction or modification of the facility, upon the 
filing of any additional information needed to bring the 
original application up to date, and upon finding that the 
facility authorized has been constructed and will operate in 
conformity with the application as amended and in conformity 
with the provisions of this Act and of the rules and 
regulations of the Commission, and in the absence of any good 
cause being shown to the Commission why the granting of a 
license would not be in accordance with the provisions of this 
Act, the Commission shall thereupon issue a license to the 
applicant. For all other purposes of this Act, a construction 
permit is deemed to be a ``license.''
   b. After holding a public hearing under section 189 a. 
(1)(A), the Commission shall issue to the applicant a combined 
construction and operating license if the application contains 
sufficient information to support the issuance of a combined 
license and the Commission determines that there is reasonable 
assurance that the facility will be constructed and will 
operate in conformity with the license, the provisions of this 
Act, and the Commission's rules and regulations. The Commission 
shall identify within the combined license the inspections, 
tests, and analyses, including those applicable to emergency 
planning, that the licensee shall perform, and the acceptance 
criteria that, if met, are necessary and sufficient to provide 
reasonable assurance that the facility has been constructed and 
will be operated in conformity with the license, the provisions 
of this Act, and the Commission's rules and regulations. 
Following issuance of the combined license, the Commission 
shall ensure that the prescribed inspections, tests, and 
analyses are performed and, prior to operation of the facility, 
shall find that the prescribed acceptance criteria are met. Any 
finding made under this subsection shall not require a hearing 
except as provided in section 189 a. (1)(B).
  c. Application Reviews for Nuclear Energy Projects.--
          (1) Streamlining license application review.--With 
        respect to an application that is docketed seeking 
        issuance of a construction permit, operating license, 
        or combined construction permit and operating license 
        for a production or utilization facility, the 
        Commission shall include the following procedures:
                  (A) Undertake an environmental review process 
                and issue any draft environmental impact 
                statement to the maximum extent practicable 
                within 24 months after the application is 
                accepted for docketing.
                  (B) Complete the technical review process and 
                issue any safety evaluation report and any 
                final environmental impact statement to the 
                maximum extent practicable within 42 months 
                after the application is accepted for 
                docketing.
          (2) Early site permit.--
                  (A) Supplemental environmental impact 
                statement.--In a proceeding for a combined 
                construction permit and operating license for a 
                site for which an early site permit has been 
                issued, any environmental impact statement 
                prepared by the Commission and cooperating 
                agencies shall be prepared as a supplement to 
                the environmental impact statement prepared for 
                the early site permit.
                  (B) Incorporation by reference.--The 
                supplemental environmental impact statement 
                shall--
                          (i) incorporate by reference the 
                        analysis, findings, and conclusions 
                        from the environmental impact statement 
                        prepared for the early site permit; and
                          (ii) include additional discussion, 
                        analyses, findings, and conclusions on 
                        matters resolved in the early site 
                        permit proceeding only to the extent 
                        necessary to address information that 
                        is new and significant in that the 
                        information would materially change the 
                        prior findings or conclusions.
          (3) Production or utilization facility located at an 
        existing site.--In reviewing an application for an 
        early site permit, construction permit, operating 
        license, or combined construction permit and operating 
        license for a production or utilization facility 
        located at the site of a licensed production or 
        utilization facility, the Commission shall, to the 
        extent practicable, use information that was part of 
        the licensing basis of the licensed production or 
        utilization facility.
          (4) Regulations.--The Commission shall initiate a 
        rulemaking, not later than 1 year after the date of 
        enactment of the Nuclear Utilization of Keynote Energy 
        Act, to amend the regulations of the Commission to 
        implement this subsection.
          (5) Environmental impact statement defined.--In this 
        subsection, the term ``environmental impact statement'' 
        means a detailed statement required under section 
        102(C) of the National Environmental Policy Act of 1969 
        (42 U.S.C. 4332(C)).
          (6) Relationship to other law.--Nothing in this 
        subsection exempts the Commission from any requirement 
        for full compliance with section 102(2)(C) of the 
        National Environmental Policy Act of 1969 (42 U.S.C. 
        4332(2)(C)).

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  Sec. 189. Hearings and Judicial Review.--
  a.(1)(A) In any proceeding under this Act, for the granting, 
suspending, revoking, or amending of any license or 
construction permit, or application to transfer control, and in 
any proceeding for the issuance or modification of rules and 
regulations dealing with the activities of licenses, and in any 
proceeding for the payment of compensation, an award or 
royalties under sections 153, 157, 186 c., or 188, the 
Commission shall grant a hearing upon the request of any person 
whose interest may be affected by the proceeding, and shall 
admit any such person as a party to such proceeding. The 
Commission shall hold a hearing after thirty days' notice and 
publication once in the Federal Register, on each application 
under section 103 or 104 b. for a construction permit for a 
facility, and on any application under section 104 c. for a 
construction permit for a testing facility. In cases where such 
a construction permit has been issued following the holding of 
such a hearing, the Commission may, in the absence of a request 
therefor by any person whose interest may be affected, issue an 
operating license or an amendment to a construction permit or 
an amendment to an operating license without a hearing, but 
upon thirty days' notice and publication once in the Federal 
Register of its intent to do so. The Commission may dispense 
with such thirty days' notice and publication with respect to 
any application for an amendment to a construction permit or an 
amendment to an operating license upon a determination by the 
Commission that the amendment involves no significant hazards 
consideration.
  (B)(i) Not less than 180 days before the date scheduled for 
initial loading of fuel into a plant by a licensee that has 
been issued a combined construction permit and operating 
license under section 185 b., the Commission shall publish in 
the Federal Register notice of intended operation. That notice 
shall provide that any person whose interest may be affected by 
operation of the plant, may within 60 days request the 
Commission to hold a hearing on whether the facility as 
constructed complies, or on completion will comply, with the 
acceptance criteria of the license.
  (ii) A request for hearing under clause (i) shall show, prima 
facie, that one or more of the acceptance criteria in the 
combined license have not been, or will not be met, and the 
specific operational consequences of nonconformance that would 
be contrary to providing reasonable assurance of adequate 
protection of the public health and safety.
  (iii) After receiving a request for a hearing under clause 
(i), the Commission expeditiously shall either deny or grant 
the request. If the request is granted, the Commission shall 
determine, after considering petitioners' prima facie showing 
and any answers thereto, whether during a period of interim 
operation, there will be reasonable assurance of adequate 
protection of the public health and safety. If the Commission 
determines that there is such reasonable assurance, it shall 
allow operation during an interim period under the combined 
license.
  (iv) The Commission, in its discretion, shall determine 
appropriate hearing procedures, whether informal or formal 
adjudicatory, for any hearing under clause (i), and shall state 
its reasons therefor.
  (v) The Commission shall, to the maximum possible extent, 
render a decision on issues raised by the hearing request 
within 180 days of the publication of the notice provided by 
clause (i) or the anticipated date for initial loading of fuel 
into the reactor, whichever is later. Commencement of operation 
under a combined license is not subject to subparagraph (A).
  (2)(A) The Commission may issue and make immediately 
effective any amendment to an operating license or any 
amendment to a combined construction and operating license, 
upon a determination by the Commission that such amendment 
involves no significant hazards consideration, notwithstanding 
the pendency before the Commission of a request for a hearing 
from any person. Such amendment may be issued and made 
immediately effective in advance of the holding and completion 
of any required hearing. In determining under this section 
whether such amendment involves no significant hazards 
consideration, the Commission shall consult with the State in 
which the facility involved is located. In all other respects 
such amendment shall meet the requirements of this Act.
  (B) The Commission shall periodically (but not less 
frequently than once every thirty days) publish notice of any 
amendments issued, or proposed to be issued, as provided in 
subparagraph (A). Each such notice shall include all amendments 
issued, or proposed to be issued, since the date of publication 
of the last such periodic notice. Such notice shall, with 
respect to each amendment or proposed amendment (i) identify 
the facility involved; and (ii) provide a brief description of 
such amendment. Nothing in this subsection shall be construed 
to delay the effective date of any amendment.
  (C) The Commission shall, during the ninety-day period 
following the effective date of this paragraph, promulgate 
regulations establishing (i) standards for determining whether 
any amendment to an operating license or any amendment to a 
combined construction and operating license involves no 
significant hazards consideration; (ii) criteria for providing 
or, in emergency situations, dispensing with prior notice and 
reasonable opportunity for public comment on any such 
determination, which criteria shall take into account the 
exigency of the need for the amendment involved; and (iii) 
procedures for consultation on any such determination with the 
State in which the facility involved is located.
  (3) The Commission may use informal adjudicatory procedures 
for any hearing required under this section for which the 
Commission determines that adjudicatory procedures under 
section 554 of title 5, United States Code, are unnecessary.
  b. The following Commission actions shall be subject to 
judicial review in the manner prescribed in chapter 158 of 
title 28, United States Code, and chapter 7 of title 5, United 
States Code:
          (1) Any final order entered in any proceeding of the 
        kind specified in subsection (a).
          (2) Any final order allowing or prohibiting a 
        facility to begin operating under a combined 
        construction and operating license.
          (3) Any final order establishing by regulation 
        standards to govern the Department of Energy's gaseous 
        diffusion uranium enrichment plants, including any such 
        facilities leased to a corporation established under 
        the USEC Privatization Act.
          (4) Any final determination under section 1701(c) 
        relating to whether the gaseous diffusion plants, 
        including any such facilities leased to a corporation 
        established under the USEC Privatization Act, are in 
        compliance with the Commission's standards governing 
        the gaseous diffusion plants and all applicable laws.

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