[House Report 118-686]
[From the U.S. Government Publishing Office]
118th Congress } { Report
HOUSE OF REPRESENTATIVES
2d Session } { 118-686
======================================================================
MILESTONES FOR ADVANCED NUCLEAR FUEL ACT
_______
September 18, 2024.--Committed to the Committee of the Whole House on
the State of the Union and ordered to be printed
_______
Mr. Lucas, from the Committee on Science, Space, and Technology,
submitted the following
R E P O R T
[To accompany H.R. 8674]
The Committee on Science, Space, and Technology, to whom
was referred the bill (H.R. 8674) to establish milestone-based
development and demonstration projects relating to nuclear
fuel, and for other purpose, having considered the same,
reports favorably thereon without amendment and recommends that
the bill do pass.
CONTENTS
Page
Purpose and Summary.............................................. 1
Background and Need for Legislation.............................. 2
Legislative History.............................................. 2
Section-by-Section............................................... 3
Related Committee Hearings....................................... 3
Committee Consideration.......................................... 3
Roll Call Votes.................................................. 4
Application of Law to the Legislative Branch..................... 4
Statement of Oversight Findings and Recommendations of the
Committee...................................................... 4
Statement of General Performance Goals and Objectives............ 4
Duplication of Federal Programs.................................. 4
Federal Advisory Committee Act................................... 4
Unfunded Mandate Statement....................................... 4
Earmark Identification........................................... 4
Committee Cost Estimate.......................................... 4
New Budget Authority, Entitlement Authority, and Tax Expenditures 5
Congressional Budget Office Cost Estimate........................ 5
Changes to Existing Law Made by the Bill, as Reported............ 5
Purpose and Summary
H.R. 8674, the Milestones for Advanced Nuclear Fuels Act,
establishes milestone-based development and demonstration
projects relating to nuclear fuels at the Department of Energy.
This bill amends the Nuclear Fuels Security Act within the
National Defense Authorization Act for Fiscal Year 2024 and the
Energy Policy Act of 2005 to require the Secretary of Energy to
award milestone-based advanced fuel cycle technologies
development and demonstration projects in accordance with the
existing authority granted through Sec. 9005 of the Energy Act
of 2020.
Specially, H.R. 8674 directs DOE to award milestone-based
projects across the domestic nuclear supply chain, including
uranium production, conversion, fabrication, enrichment,
deconversion, and recycling. Through a competitive process,
projects will prioritize novel technologies and processes while
consulting with experts from the private sector, utilities, the
investment community, and the nuclear fuel supply chain to
evaluate proposals and assist in establishing milestones.
Background and Need for Legislation
In 2022, Russia supplied 20% of the U.S. reactor fleet's
nuclear fuel. Globally, Russia controls 40% of the world's
uranium conversion infrastructure and 46% of the total uranium
enrichment capacity. In comparison, the U.S. has a miniscule
share of the nuclear supply chain with one milling facility,
one conversion facility, two enrichment facilities, three main
fuel fabrication facilities, and no recycling facilities.
For next generation advanced nuclear reactors, the
challenge is further exasperated due to the fact that Russia's
state cooperation, Rosatom, is the only commercial producer of
High-Assay Low Enriched Uranium (HALEU). Both awardees in the
Advanced Reactor Demonstration Program have indicated that
their projects could be delayed as a result of having to seek
other sources for HALEU.
Although Section 9005 of the Energy Act of 2020 granted
authority for the Secretary of Energy to use a milestone-based
structure for all demonstration projects, the Department has
been slow to take advantage of this mechanism. In the past,
milestone-based projects have achieved success while limiting
the government's exposure to risk of overbudget and
underperforming projects. NASA's Commercial Orbital
Transportation Services (COTS) program was highly successful in
stimulating a competitive market for launch providing services,
decreasing costs, and reducing dependence on Russia for
International Space Station transportation.
A milestone-based program requires that particular
technical and financial goals or benchmarks, including those
related to timelines and costs, be met before a participant is
awarded the full amount of an award. A milestone-based approach
to development and demonstration projects is instrumental in
accelerating innovative technologies from lab to market. It
also decreases barriers to entry for new participants, reduces
dependence on potential monopolies, and protects taxpayers from
waste, fraud, and abuse.
Legislative History
H.R. 8674 was introduced on June 7, 2024, by Rep. Williams
(R-NY) and cosponsored by Rep. Sorensen (D-IL).
On June 13, 2024, the Committee on Science, Space, and
Technology met to consider H.R. 8674.
Chairman Lucas moved that Committee favorably report the
bill, H.R. 8674, to the House of Representatives with the
recommendation that the bill be approved. The motion was agreed
to by voice vote.
Section-by-Section
Section 1. Short title
The short title of this legislation is ``Milestones for
Advanced Nuclear Fuel Act.''
Section 2. Milestone-based development and demonstration projects
Subsection (a) of this section amends the Nuclear Fuel
Security Act of 2023, which was enacted in the National Defense
Authorization Act for Fiscal Year 2024 (P.L. 118-31). This
subsection directs the Secretary of Energy to award milestone-
based advanced fuel cycle technologies development and
demonstration projects in accordance with Sec. 9005 of the
Energy Act of 2020 in carrying out the Nuclear Fuel Security
Program and the HALEU for Advanced Nuclear Reactor
Demonstration Projects Program.
Subsection (b) of this section amends Sec. 953 of the
Energy Policy Act of 2005 (42 U.S.C. 16273). This subsection
directs the Secretary of Energy to carry out milestone-based
demonstration projects under DOE's Fuel Cycle Research and
Development program in accordance with Sec. 9005 of the Energy
Act of 2020.
Subsection (b) also directs the Secretary of Energy, acting
through the Assistant Secretary for Nuclear Energy, to conduct
a study on the practicability, potential benefits, and
estimated lifecycle costs of advanced nuclear fuel recycling
and spent nuclear fuel reprocessing.
Related Committee Hearings
Pursuant to clause 3(c)(6) of rule XIII, the following
hearing was used to develop or consider H.R. 8674.
On September 14, 2023, the Full Committee held a hearing
entitled An Update on the Department of Energy's Science and
Technology Priorities. Members and the witness discussed the
Department of Energy's goals and priorities for its civilian
research, development, demonstration, and commercial
application programs, including those related to advanced
nuclear fuels.
Witness:
The Honorable Jennifer Granholm, Secretary
of Energy, Department of Energy.
On June 26, 2024, the Full Committee held a hearing
entitled An Overview of the Budget Proposal for the Department
of Energy for Fiscal Year 2025. Members and the witness
discussed the Department of Energy's budget priorities for
FY25, including activities related to advanced nuclear fuels.
Witness:
The Honorable David M. Turk, Deputy
Secretary, Department of Energy.
Committee Consideration
On June 13, 2024, the Committee met in open session and
ordered reported favorably the bill, H.R. 8674, without
amendment, by voice vote, a quorum being present.
Roll Call Votes
Clause 3(b) of rule XIII requires the Committee to list the
record votes on the motion to report legislation and amendments
thereto. The following reflects the record votes taken during
the Committee consideration: Voice vote was agreed to by
Members in order to avoid a scheduling conflict with a
Conference-wide meeting. Ordered to be reported favorably on
the yeas, without amendment.
Application of Law to the Legislative Branch
The Committee finds that H.R. 8674 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 (Public Law 104-1).
Statement of Oversight Findings and Recommendations of the Committee
In compliance with clause 3(c)(1) of rule XIII and clause
(2)(b)(1) of rule X, the Committee's oversight findings and
recommendations are reflected in the descriptive portions of
this report.
Statement of General Performance Goals and Objectives
Pursuant to clause (3)(c)(4) of rule XIII, the goal of H.R.
8674 is to establish milestone-based development and
demonstration projects relating to nuclear fuel at the
Department of Energy.
Duplication of Federal Programs
Pursuant to clause 3(c)(5) of rule XIII, the Committee
finds that no provision of H.R. 8674 establishes or
reauthorizes a program of the Federal Government 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 identified in the most recent
Catalog of Federal Domestic Assistance.
Federal Advisory Committee Act
The Committee finds that the legislation does not establish
or authorize the establishment of an advisory committee within
the definition of section 5(b) of the Federal Advisory
Committee Act.
Unfunded Mandate 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.
Earmark Identification
Pursuant to clauses 9(e), 9(f), and 9(g) of rule XXI, the
Committee finds that H.R. 8674 does not include any
congressional earmarks, limited tax benefits, or limited tariff
benefits.
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. At the time this report was
filed, the estimate was not available.
New Budget Authority, Entitlement Authority, and Tax Expenditures
Pursuant to clause 3(c)(2) of rule XIII, the Committee
finds that H.R. 8674 would result in no new or increased budget
authority, entitlement authority, or tax expenditures or
revenues.
Congressional Budget Office Cost Estimate
Pursuant to clause 3(c)(3) of rule XIII, at the time this
report was filed, the cost estimate prepared by the Director of
the Congressional Budget Office pursuant to section 402 of the
Congressional Budget Act of 1974 was not available.
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 italics, and existing law in which no
change is proposed is shown in roman):
NUCLEAR FUEL SECURITY ACT OF 2023
DIVISION C--DEPARTMENT OF ENERGY NATIONAL SECURITY AUTHORIZATIONS AND
OTHER AUTHORIZATIONS
TITLE XXXI--DEPARTMENT OF ENERGY NATIONAL SECURITY PROGRAMS
* * * * * * *
Subtitle C--Other Matters
SEC. 3131. U.S. NUCLEAR FUEL SECURITY INITIATIVE.
(a) Short Title.--This section may be cited as the ``Nuclear
Fuel Security Act of 2023''.
(b) Sense of Congress.--It is the sense of Congress that--
(1) the Department should--
(A) support increased domestic production of
low-enriched uranium; and
(B) accelerate efforts to establish a
domestic high-assay, low-enriched uranium
enrichment capability; and
(2) if domestic enrichment of high-assay, low-
enriched uranium will not be commercially available at
the scale needed in time to meet the needs of the
advanced nuclear reactor demonstration projects of the
Department, the Secretary shall consider and implement,
as necessary--
(A) all viable options to make high-assay,
low-enriched uranium produced from inventories
owned by the Department available in a manner
that is sufficient to maximize the potential
for the Department to meet the needs and
schedules of advanced nuclear reactor
developers, without impacting existing
Department missions, until such time that
commercial enrichment and deconversion
capability for high-assay, low-enriched uranium
exists at a scale sufficient to meet future
needs; and
(B) all viable options for partnering with
countries that are allies or partners of the
United States to meet those needs and schedules
until that time.
(c) Objectives.--The objectives of this section are--
(1) to support domestic production of low-enriched
uranium;
(2) to expeditiously increase domestic production of
high-assay, low-enriched uranium by an annual quantity,
and in such form, determined by the Secretary to be
sufficient to meet the needs of--
(A) advanced nuclear reactor developers; and
(B) the consortium;
(3) to ensure the availability of domestically
produced, converted, enriched, deconverted, and reduced
uranium in a quantity determined by the Secretary, in
consultation with U.S. nuclear energy companies, to be
sufficient to address a reasonably anticipated supply
disruption;
(4) to address gaps and deficiencies in the domestic
production, conversion, enrichment, deconversion, and
reduction of uranium by partnering with countries that
are allies or partners of the United States if domestic
options are not practicable;
(5) to ensure that, in the event of a supply
disruption in the nuclear fuel market, a reserve of
nuclear fuels is available to serve as a backup supply
to support the nuclear nonproliferation and civil
nuclear energy objectives of the Department, including
collaborative research and development activities with
other Federal agencies;
(6) to support enrichment, deconversion, and
reduction technology deployed in the United States; and
(7) to ensure that, until such time that domestic
enrichment and deconversion of high-assay, low-enriched
uranium is commercially available at the scale needed
to meet the needs of advanced nuclear reactor
developers, the Secretary considers and implements, as
necessary--
(A) all viable options to make high-assay,
low-enriched uranium produced from inventories
owned by the Department available in a manner
that is sufficient to maximize the potential
for the Department to meet the needs and
schedules of advanced nuclear reactor
developers; and
(B) all viable options for partnering with
countries that are allies or partners of the
United States to meet those needs and
schedules.
(d) Definitions.--In this section:
(1) Advanced nuclear reactor.--The term ``advanced
nuclear reactor'' has the meaning given the term in
section 951(b) of the Energy Policy Act of 2005 (42
U.S.C. 16271(b)).
(2) Associated entity.--The term ``associated
entity'' means an entity that--
(A) is owned, controlled, or dominated by--
(i) the government of a country that
is an ally or partner of the United
States; or
(ii) an associated individual; or
(B) is organized under the laws of, or
otherwise subject to the jurisdiction of, a
country that is an ally or partner of the
United States, including a corporation that is
incorporated in such a country.
(3) Associated individual.--The term ``associated
individual'' means an alien who is a national of a
country that is an ally or partner of the United
States.
(4) Consortium.--The term ``consortium'' means the
consortium established under section 2001(a)(2)(F) of
the Energy Act of 2020 (42 U.S.C. 16281(a)(2)(F)).
(5) Department.--The term ``Department'' means the
Department of Energy.
(6) High-assay, low-enriched uranium; haleu.--The
term ``high-assay, low-enriched uranium'' or ``HALEU''
means high-assay low-enriched uranium (as defined in
section 2001(d) of the Energy Act of 2020 (42 U.S.C.
16281(d))).
(7) Low-enriched uranium; leu.--The term ``low-
enriched uranium'' or ``LEU'' means each of--
(A) low-enriched uranium (as defined in
section 3102 of the USEC Privatization Act (42
U.S.C. 2297h)); and
(B) low-enriched uranium (as defined in
section 3112A(a) of that Act (42 U.S.C. 2297h-
10a(a))).
(8) National laboratory.--The term ``National
Laboratory'' has the meaning given such term in section
2 of the Energy Policy Act of 2005 (42 U.S.C. 15801).
[(8)] (9) Programs.--The term ``Programs'' means--
(A) the Nuclear Fuel Security Program
established under subsection (e)(1);
(B) the American Assured Fuel Supply Program
of the Department; and
(C) the HALEU for Advanced Nuclear Reactor
Demonstration Projects Program established
under subsection (e)(3).
[(9)] (10) Secretary.--The term ``Secretary'' means
the Secretary of Energy.
[(10)] (11) U.S. nuclear energy company.--The term
``U.S. nuclear energy company'' means a company that--
(A) is organized under the laws of, or
otherwise subject to the jurisdiction of, the
United States; and
(B) is involved in the nuclear energy
industry.
(e) Establishment and Expansion of Programs.--The Secretary,
consistent with the objectives described in subsection (c),
shall--
(1) establish a program, to be known as the ``Nuclear
Fuel Security Program'', to increase the quantity of
HALEU and, if determined to be necessary after
completion of a market evaluation, LEU produced by U.S.
nuclear energy companies;
(2) expand the American Assured Fuel Supply Program
of the Department to ensure the availability of
domestically produced, converted, enriched,
deconverted, and reduced uranium in the event of a
supply disruption; and
(3) establish a program, to be known as the ``HALEU
for Advanced Nuclear Reactor Demonstration Projects
Program''--
(A) to maximize the potential for the
Department to meet the needs and schedules of
advanced nuclear reactor developers until such
time that commercial enrichment and
deconversion capability for HALEU exists in the
United States at a scale sufficient to meet
future needs; and
(B) where practicable, to partner with
countries that are allies or partners of the
United States to meet those needs and schedules
until that time.
(f) Nuclear Fuel Security Program.--
(1) In general.--In carrying out the Nuclear Fuel
Security Program, the Secretary--
(A) shall--
(i) if determined to be necessary or
appropriate based on the completion of
a market evaluation, not later than 90
days after the date of enactment of
this Act, take actions, including cost-
shared financial agreements, milestone-
based payments, or other mechanisms, to
support commercial availability of LEU
and to promote diversity of supply in
domestic uranium mining, conversion,
enrichment, and deconversion capacity
and technologies, including new
capacity, among U.S. nuclear energy
companies;
(ii) not later than 180 days after
the date of enactment of this Act,
enter into 2 or more contracts with
members of the consortium to begin
acquiring not less than 20 metric tons
per year of HALEU by December 31, 2027
(or the earliest operationally feasible
date thereafter), from U.S. nuclear
energy companies;
(iii) utilize only uranium produced,
converted, enriched, deconverted, and
reduced in--
(I) the United States; or
(II) if domestic options are
not practicable, a country that
is an ally or partner of the
United States; and
(iv) to the maximum extent
practicable, ensure that the use of
domestic uranium utilized as a result
of that program does not negatively
affect the economic operation of
nuclear reactors in the United States;
and
(B)
(i) may not make commitments under
this subsection (including cooperative
agreements (used in accordance with
section 6305 of title 31, United States
Code), purchase agreements, guarantees,
leases, service contracts, or any other
type of commitment) for the purchase or
other acquisition of HALEU or LEU
unless funds are specifically provided
for those purposes in advance in
appropriations Acts enacted after the
date of enactment of this Act; and
(ii) may make a commitment described
in clause (i) only--
(I) if the full extent of the
anticipated costs stemming from
the commitment is recorded as
an obligation at the time that
the commitment is made; and
(II) to the extent of that
up-front obligation recorded in
full at that time.
(2) Considerations.--In carrying out paragraph
(1)(A)(ii), the Secretary shall consider and, if
appropriate, implement--
(A) options to ensure the quickest
availability of commercially enriched HALEU,
including--
(i) partnerships between 2 or more
commercial enrichers; and
(ii) utilization of up to 10-percent
enriched uranium as feedstock in
demonstration-scale or commercial HALEU
enrichment facilities;
(B) options to partner with countries that
are allies or partners of the United States to
provide LEU and HALEU for commercial purposes;
(C) options that provide for an array of
HALEU--
(i) enrichment levels;
(ii) output levels to meet demand;
and
(iii) fuel forms, including uranium
metal and oxide; and
(D) options--
(i) to replenish, as necessary,
Department stockpiles of uranium that
were intended to be downblended for
other purposes, but were instead used
in carrying out activities under the
HALEU for Advanced Nuclear Reactor
Demonstration Projects Program;
(ii) to continue supplying HALEU to
meet the needs of the recipients of an
award made pursuant to the funding
opportunity announcement of the
Department numbered DE-FOA-0002271 for
Pathway 1, Advanced Reactor
Demonstrations; and
(iii) to make HALEU available to
other advanced nuclear reactor
developers and other end-users.
(3) Avoidance of market disruptions.--In carrying out
the Nuclear Fuel Security Program, the Secretary, to
the extent practicable and consistent with the purposes
of that program, shall not disrupt or replace market
mechanisms by competing with U.S. nuclear energy
companies.
(g) Expansion of the American Assured Fuel Supply Program.--
The Secretary, in consultation with U.S. nuclear energy
companies, shall--
(1) expand the American Assured Fuel Supply Program
of the Department by merging the operations of the
Uranium Reserve Program of the Department with the
American Assured Fuel Supply Program; and
(2) in carrying out the American Assured Fuel Supply
Program of the Department, as expanded under paragraph
(1)--
(A) maintain, replenish, diversify, or
increase the quantity of uranium made available
by that program in a manner determined by the
Secretary to be consistent with the purposes of
that program and the objectives described in
subsection (c);
(B) utilize only uranium produced, converted,
enriched, deconverted, and reduced in--
(i) the United States; or
(ii) if domestic options are not
practicable, a country that is an ally
or partner of the United States;
(C) make uranium available from the American
Assured Fuel Supply, subject to terms and
conditions determined by the Secretary to be
reasonable and appropriate;
(D) refill and expand the supply of uranium
in the American Assured Fuel Supply, including
by maintaining a limited reserve of uranium to
address a potential event in which a domestic
or foreign recipient of uranium experiences a
supply disruption for which uranium cannot be
obtained through normal market mechanisms or
under normal market conditions; and
(E) take other actions that the Secretary
determines to be necessary or appropriate to
address the purposes of that program and the
objectives described in subsection (c).
(h) HALEU for Advanced Nuclear Reactor Demonstration Projects
Program.--
(1) Activities.--On enactment of this Act, the
Secretary shall immediately accelerate and, as
necessary, initiate activities to make available from
inventories or stockpiles owned by the Department and
made available to the consortium, HALEU for use in
advanced nuclear reactors that cannot operate on
uranium with lower enrichment levels or on alternate
fuels, with priority given to the awards made pursuant
to the funding opportunity announcement of the
Department numbered DE-FOA-0002271 for Pathway 1,
Advanced Reactor Demonstrations, with additional HALEU
to be made available to other advanced nuclear reactor
developers, as the Secretary determines to be
appropriate.
(2) Quantity.--In carrying out activities under this
subsection, the Secretary shall consider and implement,
as necessary, all viable options to make HALEU
available in quantities and forms sufficient to
maximize the potential for the Department to meet the
needs and schedules of advanced nuclear reactor
developers, including by seeking to make available--
(A) by September 30, 2024, not less than 3
metric tons of HALEU;
(B) by December 31, 2025, not less than an
additional 8 metric tons of HALEU; and
(C) by June 30, 2026, not less than an
additional 10 metric tons of HALEU.
(3) Factors for consideration.--In carrying out
activities under this subsection, the Secretary shall
take into consideration--
(A) options for providing HALEU from a
stockpile of uranium owned by the Department,
including--
(i) uranium that has been declared
excess to national security needs
during or prior to fiscal year 2023;
(ii) uranium that--
(I) directly meets the needs
of advanced nuclear reactor
developers; but
(II) has been previously used
or fabricated for another
purpose;
(iii) uranium that can meet the needs
of advanced nuclear reactor developers
after removing radioactive or other
contaminants that resulted from
previous use or fabrication of the fuel
for research, development,
demonstration, or deployment activities
of the Department, including activities
that reduce the environmental liability
of the Department by accelerating the
processing of uranium from stockpiles
designated as waste;
(iv) uranium from a high-enriched
uranium stockpile (excluding stockpiles
intended for national security needs),
which can be blended with lower assay
uranium to become HALEU to meet the
needs of advanced nuclear reactor
developers; and
(v) uranium from stockpiles intended
for other purposes (excluding
stockpiles intended for national
security needs), but for which uranium
could be swapped or replaced in time in
such a manner that would not negatively
impact the missions of the Department;
(B) options for expanding, or establishing
new, capabilities or infrastructure to support
the processing of uranium from Department
inventories;
(C) options for accelerating the availability
of HALEU from HALEU enrichment demonstration
projects of the Department;
(D) options for providing HALEU from
domestically enriched HALEU procured by the
Department through a competitive process
pursuant to the Nuclear Fuel Security Program
established under subsection (e)(1);
(E) options to replenish, as needed,
Department stockpiles of uranium made available
pursuant to subparagraph (A) with domestically
enriched HALEU procured by the Department
through a competitive process pursuant to the
Nuclear Fuel Security Program established under
subsection (e)(1); and
(F) options that combine 1 or more of the
approaches described in subparagraphs (A)
through (E) to meet the deadlines described in
paragraph (2).
(4) Limitations.--
(A) Certain services.--The Secretary shall
not barter or otherwise sell or transfer
uranium in any form in exchange for services
relating to--
(i) the final disposition of
radioactive waste from uranium that is
the subject of a contract for sale,
resale, transfer, or lease under this
subsection; or
(ii) environmental cleanup
activities.
(B) Certain commitments.--In carrying out
activities under this subsection, the
Secretary--
(i) may not make commitments under
this subsection (including cooperative
agreements (used in accordance with
section 6305 of title 31, United States
Code), purchase agreements, guarantees,
leases, service contracts, or any other
type of commitment) for the purchase or
other acquisition of HALEU or LEU
unless funds are specifically provided
for those purposes in advance in
appropriations Acts enacted after the
date of enactment of this Act; and
(ii) may make a commitment described
in clause (i) only--
(I) if the full extent of the
anticipated costs stemming from
the commitment is recorded as
an obligation at the time that
the commitment is made; and
(II) to the extent of that
up-front obligation recorded in
full at that time.
(5) Sunset.--The authority of the Secretary to carry
out activities under this subsection shall terminate on
the earlier of--
(A) the date on which the Secretary notifies
Congress that the HALEU needs of advanced
nuclear reactor developers can be fully met by
commercial HALEU suppliers in the United
States, as determined by the Secretary, in
consultation with U.S. nuclear energy
companies; and
(B) September 30, 2034.
(i) Domestic Sourcing Considerations.--
(1) In general.--Except as provided in paragraph (2),
the Secretary may only carry out an activity in
connection with 1 or more of the Programs if--
(A) the activity promotes manufacturing in
the United States associated with uranium
supply chains; or
(B) the activity relies on resources,
materials, or equipment developed or produced--
(i) in the United States; or
(ii) in a country that is an ally or
partner of the United States by--
(I) the government of that
country;
(II) an associated entity; or
(III) a U.S. nuclear energy
company.
(2) Waiver.--The Secretary may waive the requirements
of paragraph (1) with respect to an activity if the
Secretary determines a waiver to be necessary to
achieve 1 or more of the objectives described in
subsection (c).
(j) Reasonable Compensation.--In carrying out activities
under this section, the Secretary shall ensure that any LEU and
HALEU made available by the Secretary under 1 or more of the
Programs is subject to reasonable compensation, taking into
account the fair market value of the LEU or HALEU and the
purposes of this section.
(k) Nuclear Regulatory Commission.--The Nuclear Regulatory
Commission shall prioritize and expedite consideration of any
action related to the Programs to the extent permitted under
the Atomic Energy Act of 1954 (42 U.S.C. 2011 et seq.) and
related statutes.
(l) USEC Privatization Act.--The requirements of section
3112(d)(2) of the USEC Privatization Act (42 U.S.C. 2297h-
10(d)(2)) shall not apply to activities related to the
Programs.
(m) National Security Needs.--The Secretary shall only make
available to a member of the consortium under this section for
commercial use or use in a demonstration project material that
the President has determined is not necessary for national
security needs during or prior to fiscal year 2023, subject to
the condition that the material made available shall not
include any material that the Secretary determines to be
necessary for the National Nuclear Security Administration or
any critical mission of the Department.
(n) International Agreements.--This section shall be applied
in a manner consistent with the obligations of the United
States under international agreements.
(o) Report on Civil Nuclear Credit Program.--Not later than
180 days after the date of enactment of this Act, the Secretary
shall submit to the appropriate committees of Congress a report
that identifies the anticipated funding requirements for the
civil nuclear credit program described in section 40323 of the
Infrastructure Investment and Jobs Act (42 U.S.C. 18753),
taking into account--
(1) the zero-emission nuclear power production credit
authorized by section 45U of the Internal Revenue Code
of 1986; and
(2) any increased fuel costs associated with the use
of domestic fuel that may arise from the implementation
of that program.
(p) Supply Chain Infrastructure and Workforce Capacity
Building.--
(1) Supply chain infrastructure.--Section 10781(b)(1)
of Public Law 117-167 (commonly known as the ``CHIPS
and Science Act of 2022'') (42 U.S.C. 19351(b)(1)) is
amended by striking ``and demonstration of advanced
nuclear reactors'' and inserting ``demonstration, and
deployment of advanced nuclear reactors and associated
supply chain infrastructure''.
(2) Workforce capacity building.--Section 954(b) of
the Energy Policy Act of 2005 (42 U.S.C. 16274(b)) is
amended--
(A) in the subsection heading, by striking
``Graduate'';
(B) by striking ``graduate'' each place it
appears;
(C) in paragraph (2)(A), by inserting
``community colleges, trade schools, registered
apprenticeship programs, pre-apprenticeship
programs,'' after ``universities,'';
(D) in paragraph (3), by striking ``2021
through 2025'' and inserting ``2023 through
2027'';
(E) by redesignating paragraph (3) as
paragraph (4); and
(F) by inserting after paragraph (2) the
following:
``(A) Focus areas.--In carrying out the
subprogram under this subsection, the Secretary
may implement traineeships in focus areas that,
in the determination of the Secretary, are
necessary to support the nuclear energy sector
in the United States, including--
``(i) research and development;
``(ii) construction and operation;
``(iii) associated supply chains; and
``(iv) workforce training and
retraining to support transitioning
workforces.''.
(q) Application of Certain Milestone-based Development and
Demonstration Projects.--
(1) In general.--The Secretary shall award milestone-
based advanced fuel cycle technologies development and
demonstration projects in accordance with section 9005
of the Energy Act of 2020 (42 U.S.C. 7256c; enacted as
part of title IX of division Z of the Consolidated
Appropriations Act, 2021) in carrying out the Nuclear
Fuel Security Program and the HALEU for Advanced
Nuclear Reactor Demonstration Projects Program
(established pursuant to subsection (e), and carried
out in accordance with subsections (f) and (h),
respectively) in the same manner and to the same extent
as such section 9005 applies to section 846(g) of the
Department of Energy Organization Act (42 U.S.C.
7256(g)).
(2) Purpose.--In carrying out milestone-based
advanced fuel cycle technologies development and
demonstration projects referred to in paragraph (1),
the Secretary shall support the development and
demonstration of an economically competitive, nuclear
fuel supply chain by not later than three years after
the date of the enactment of this subsection that
includes domestic uranium production, conversion,
enrichment, deconversion, and waste reduction for
advanced fuels, such as HALEU and other advanced
nuclear reactor fuels, for the following:
(A) Department research, development, and
demonstration projects for advanced nuclear
reactors, including civilian research and
experimental reactors.
(B) Advanced nuclear reactors.
(C) Strategic radioactive and stable isotopes
producers, such as energy, medical, space-based
heating and power, and national security
application, and for basic research.
(D) Interagency and intra-agency partnerships
and collaborations, including with the National
Laboratories, the Advanced Research Projects
Agency-Energy, the National Aeronautics and
Space Administration, the Department of
Defense, and other relevant Federal and State
departments and agencies, as determined
appropriate by the Secretary.
(3) Eligibility.--Any associated entity is eligible
to participate in the projects under this subsection if
the Secretary has determined such entity has the
necessary resources and expertise. In selecting
eligible associated entities, the Secretary shall
select, to the maximum extent practicable, associated
entities that--
(A) prioritize novel technologies and
processes;
(B) utilize technologies and processes that
reduce nonproliferation risks; and
(C) leverage matching funds from non-Federal
sources.
(4) Requirements.--In carrying out such projects, the
Secretary shall consult with developers of advanced
nuclear reactors and owners and operators of electric
utilities to review proposed technical and financial
milestones and assist in the development of such
milestones.
(5) Selection.--For the associated entities selected
under this subsection, the following conditions shall
apply:
(A) Consistent with the existing authorities
of the Department, the Secretary may terminate
an agreement with a selected associated entity
for cause during the performance period.
(B) Support under this subsection may not be
used to cover any costs or reimbursement of
expenses that are covered by Federal funding
provided through other support, including
awards.
(6) Applications.--A project proposal submitted under
this subsection shall be evaluated based upon the
scientific, technical, and business merits of such
proposal, including consideration of waste management
benefits, through a peer-review process, which shall
include reviewers with appropriate expertise from the
private sector, electric utilities, the investment
community, and nuclear fuel and supply chain experts.
(7) Project management.--In carrying out projects
under this subsection and assessing the completion of
the milestones developed pursuant to paragraph (4), the
Secretary shall consult with nuclear fuel and supply
experts representing diverse perspectives and
professional experiences, including developers of
advanced nuclear reactor owners and operators of
electric utilities, to ensure a complete and thorough
review.
(8) Annual briefing.--As part of the annual budget
request submitted for each fiscal year, the Secretary
shall provide the Committee on Science, Space, and
Technology of the House of Representatives and the
Committee on Energy and Natural Resources of the Senate
a briefing describing the selected projects under this
subsection during the previous fiscal year, the
benefits and drawbacks of milestone-based projects as
compared to traditional project structure funding
models, and lessons-leaned from project operations.
* * * * * * *
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ENERGY POLICY ACT OF 2005
* * * * * * *
TITLE IX--RESEARCH AND DEVELOPMENT
* * * * * * *
Subtitle E--Nuclear Energy
* * * * * * *
SEC. 953. FUEL CYCLE RESEARCH, DEVELOPMENT, DEMONSTRATION, AND
COMMERCIAL APPLICATION.
(a) Used Nuclear Fuel Research, Development, Demonstration,
and Commercial Application.--
(1) In general.--The Secretary shall conduct an
advanced fuel cycle research, development,
demonstration, and commercial application program to
improve fuel cycle performance, minimize environmental
and public health and safety impacts, and support a
variety of options for used nuclear fuel storage, use,
and disposal, including advanced nuclear reactor and
non-reactor concepts (such as radioisotope power
systems), which may include--
(A) dry cask storage;
(B) consolidated interim storage;
(C) deep geological storage and disposal,
including mined repository, and other
technologies;
(D) used nuclear fuel transportation;
(E) integrated waste management systems;
(F) vitrification;
(G) fuel recycling and transmutation
technologies, including advanced reprocessing
technologies such as electrochemical and molten
salt technologies, and advanced redox
extraction technologies;
(H) advanced materials to be used in
subparagraphs (A) through (G); and
(I) other areas as determined by the
Secretary.
(2) Requirements.--In carrying out the program under
this subsection, the Secretary shall--
(A) ensure all activities and designs
incorporate state of the art safeguards
technologies and techniques to reduce risk of
proliferation;
(B) consult with the Administrator of the
National Nuclear Security Administration to
integrate safeguards and security by design;
(C) consider the potential benefits and other
impacts of those activities for civilian
nuclear applications, environmental health and
safety, and national security, including
consideration of public consent; and
(D) consider the economic viability of all
activities and designs.
(3) Authorization of appropriations.--There are
authorized to be appropriated to the Secretary to carry
out the program under this subsection $60,000,000 for
each of fiscal years 2021 through 2025.
(b) Advanced Fuels.--
(1) In general.--The Secretary shall conduct an
advanced fuels research, development, demonstration,
and commercial application program on next-generation
light water reactor and advanced reactor fuels that
demonstrate the potential for improved--
(A) performance;
(B) accident tolerance;
(C) proliferation resistance;
(D) use of resources;
(E) environmental impact; and
(F) economics.
(2) Requirements.--In carrying out the program under
this subsection, the Secretary shall focus on the
development of advanced technology fuels, including
fabrication techniques, that offer improved accident-
tolerance and economic performance with the goal of
initial commercial application by December 31, 2025.
(3) Report.--Not later than 180 days after the date
of enactment of this section, the Secretary shall
submit to the Committee on Science, Space, and
Technology of the House of Representatives and the
Committee on Energy and Natural Resources of the Senate
a report that describes how the technologies and
concepts studied under this program would impact
reactor economics, the fuel cycle, operations, safety,
proliferation, and the environment.
(4) Authorization of appropriations.--There are
authorized to be appropriated to the Secretary to carry
out the program under this subsection $125,000,000 for
each of fiscal years 2021 through 2025.
(c) Milestone-based Demonstrations Projects.--The Secretary
shall carry out demonstration projects under this section as a
milestone-based demonstration project in the same manner and to
the same extent as under section 9005 of the Energy Act of 2020
(42 U.S.C. 7256c; enacted as part of title IX of division Z of
the Consolidated Appropriations Act, 2021), with priority
placed on awarding milestone-based awards to projects that
increase domestic fabrication and recycling capacity of spent
nuclear fuel for advanced fuels.
(d) Report.--Not later than 180 days after the date of the
date of the enactment of this subsection, the Secretary, acting
through the Assistant Secretary for Nuclear Energy, shall
complete and make publicly available a study that analyzes the
practicability, potential benefits, including relating to waste
reduction through separation of high- and low-level waste or
utilization of transuranic materials, and estimated lifecycle
costs of the following:
(1) Dedicated recycling facilities, and co-location
with other nuclear energy infrastructure, that utilize
spent nuclear fuel from existing nuclear reactors and
future advanced nuclear reactors into usable nuclear
fuel for the following:
(A) Commercial light water reactors.
(B) Advanced nuclear reactors.
(C) Space-based heating and power.
(D) Research reactors.
(E) Nuclear battery applications.
(F) Such other applications as determined
appropriate by the Secretary.
(2) Dedicated recycling facilities, and co-location
with other nuclear energy infrastructure, to utilize
high-assay low-enriched uranium (HALEU) (as such term
is defined in section 2001(d) of the Energy Act of 2020
(42 U.S.C. 16281(d)), or other feedstocks, such as
uranium and transuranic materials, into usable nuclear
fuel for the following:
(A) Commercial light water reactors.
(B) Advanced nuclear reactors.
(C) Space-based power.
(D) Research reactors.
(E) Nuclear battery applications.
(F) Such other applications as determined
appropriate by the Secretary.
(3) Utilizing recycled fuel in advanced nuclear
reactors or existing light water reactors as compared
to non-recycled fuel.
(4) Dedicated spent nuclear fuel reprocessing
facilities, and co-location with other nuclear energy
infrastructure, to extract certain radioactive and
stable isotopes needed for domestic and international
use, including for the following:
(A) Advanced nuclear reactors.
(B) Medical, industrial, space-based power,
and nuclear battery applications.
(C) Such other applications as determined
appropriate by the Secretary.
(5) Commercial associated entities acquiring spent
fuel from operating or shutdown reactors and any
contract or policy revisions that could better
facilitate such transactions.
(6) Private sector associated entities that take
title of spent nuclear fuel from commercial nuclear
reactor sites for any of the following:
(A) Research or reuse.
(B) Recycling.
(C) Strategic radioactive or stable isotope
extraction.
(7) Comprehensive cost-benefit analysis associated
with spent fuel recycling, including considerations of
net reduction in spent fuel inventory, separation of
high- and low-level waste with new storage
requirements, disposal of byproducts from spent fuel
recycling, supply chain impacts, and list of industries
that would benefit from spent fuel recycling
byproducts.
(8) Policy, legal, or regulatory changes to support
the safe and secure development and deployment of
recycling and waste utilizing reactor technologies, and
any impacts such changes would have on domestic storage
of spent nuclear fuel and disposal through the
recycling of spent nuclear fuel.
* * * * * * *