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S. 3428 — what changed

Fission for the Future Act

From Introduced in Senate to Engrossed in Senate. 3 sections amended between Introduced in Senate and Engrossed in Senate.

Section 1 Short title

changed This Act may be cited as the “Fission for the Future Act of 2021”.Act”.

Sec. 2 U.S. nuclear fuels security initiative

(a)
added Sense of Congress— It is the sense of Congress that—
(1)
added the Department should—
(A)
added prioritize activities to increase domestic production of low-enriched uranium; and
(B)
added accelerate efforts to establish a domestic high-assay, low-enriched uranium enrichment capability; and
(2)
added 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)
added 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)
added 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.
(b)
added Objectives— The objectives of this section are—
(1)
added to expeditiously increase domestic production of low-enriched uranium;
(2)
added 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)
added advanced nuclear reactor developers; and
(B)
added the consortium;
(3)
added to ensure the availability of domestically produced, converted, and enriched 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)
added 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)
added 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;
(6)
added to support enrichment, deconversion, and reduction technology deployed in the United States; and
(7)
added 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)
added 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)
added all viable options for partnering with countries that are allies or partners of the United States to meet those needs and schedules.
(c)
renumbered was (2) Definitions— In this section:
(1)
renumbered was (2)(3) 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)
added Associated entity— The term associated entity means an entity that—
(A)
added is owned, controlled, or dominated by—
(i)
added the government of a country that is an ally or partner of the United States; or
(ii)
added an associated individual; or
(B)
added 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)
added 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)
added 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)
added Department— The term Department means the Department of Energy.
(6)
added 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)
added Low-enriched uranium; LEU— The term low-enriched uranium or LEU means each of—
(A)
added low-enriched uranium (as defined in section 3102 of the USEC Privatization Act (42 U.S.C. 2297h)); and
(B)
added low-enriched uranium (as defined in section 3112A(a) of that Act (42 U.S.C. 2297h–10a(a))).
(8)
added Programs— The term Programs means—
(A)
added the Nuclear Fuel Security Program established under subsection (d)(1);
(B)
added the American Assured Fuel Supply Program of the Department; and
(C)
added the HALEU for Advanced Nuclear Reactor Demonstration Projects Program established under subsection (d)(3).
(2)
removed Electric utility— The term electric utility has the meaning given the term in section 3 of the Federal Power Act (16 U.S.C. 796).
(3)
removed Eligible entity— The term eligible entity means each of—
(A)
removed a State;
(B)
removed an Indian Tribe (as defined in section 4 of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 5304));
(C)
removed a Tribal Organization (as defined in section 4 of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 5304));
(D)
removed a unit of local government;
(E)
removed an electric utility;
(F)
removed a National Laboratory;
(G)
removed an institution of higher education; and
(H)
removed a private entity specializing in—
(i)
removed advanced nuclear technology development;
(ii)
removed nuclear supply chains; or
(iii)
removed with respect to nuclear technologies and nonelectric applications of nuclear technologies, construction, project financing, contract structuring and risk allocation, or regulatory and licensing processes.
(4)
removed Institution of higher education— The term institution of higher education has the meaning given the term in section 101(a) of the Higher Education Act of 1965 (20 U.S.C. 1001(a)).
(5)
removed National Laboratory— The term National Laboratory has the meaning given the term in section 2 of the Energy Policy Act of 2005 (42 U.S.C. 15801).
(6)
removed Program— The term program means the program established under subsection (b)(1).
(9)
renumbered was (2)(9) Secretary— The term Secretary means the Secretary of Energy.
(10)
added U.S. nuclear energy company— The term U.S. nuclear energy company means a company that—
(A)
added is organized under the laws of, or otherwise subject to the jurisdiction of, the United States; and
(B)
added is involved in the nuclear energy industry.
(d)
added Establishment and expansion of programs— The Secretary, consistent with the objectives described in subsection (b), shall—
(b)
removed Establishment of program—
(1)
removed In general— The Secretary shall establish a program to provide Federal financial assistance to eligible entities to support the commercial planning, licensing, development, and construction, and construction planning, of—
(A)
removed advanced nuclear reactors for the purpose of enhancing grid resilience, reliability, and security while also seeking to reduce emissions; or
(B)
removed supply chain infrastructure associated with advanced nuclear reactors or related technologies.
(2)
removed Competitive procedures— To the maximum extent practicable, the Secretary shall carry out the program using a competitive, merit-based review process that is consistent with section 989 of the Energy Policy Act of 2005 (42 U.S.C. 16353).
(c)
removed Applications— An eligible entity desiring Federal financial assistance under the program shall submit to the Secretary an application at such time, in such manner, and containing such information as the Secretary may require.
(d)
removed Selection—
(1)
removed In general— In selecting eligible entities to receive Federal financial assistance under the program, the Secretary shall give special consideration to projects—
(A)
removed to develop or provide services to support—
(i)
removed market analysis;
(ii)
removed project structure models;
(iii)
removed models for electricity market analysis;
(iv)
removed nonelectric applications;
(v)
removed financial models;
(vi)
removed analysis, planning, and, as appropriate, management of environmental issues at fossil fuel electric generation facilities that are retired or scheduled to retire; and
(vii)
removed site planning, review, testing, analysis, and preparation;
(B)
removed to support licensing activities, permitting, and environmental impact studies; and
(C)
removed for—
(i)
removed
(I)
removed the construction planning of advanced nuclear reactors; and
(II)
removed related—
(aa)
removed planning and construction of transmission and distribution systems;
(bb)
removed modernization of generation facilities;
(cc)
removed development of microgrids; and
(dd)
removed supply chain infrastructure;
(ii)
removed infrastructure for nonelectric applications; and
(iii)
removed acquisition of relevant rights-of-way.
(1)
changed Priority— In selecting eligible entities to receive Federal financial assistance under the establish a program, to be known as the Secretary shall give priority “Nuclear Fuel Security Program”, to eligible entities that—increase the quantity of LEU and HALEU produced by U.S. nuclear energy companies;
(2)
added expand the American Assured Fuel Supply Program of the Department to ensure the availability of domestically produced, converted, and enriched uranium in the event of a supply disruption; and
(3)
added establish a program, to be known as the “HALEU for Advanced Nuclear Reactor Demonstration Projects Program”—
(A)
added 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)
added where practicable, to partner with countries that are allies or partners of the United States to meet those needs and schedules until that time.
(e)
added Nuclear Fuel Security Program—
(1)
added In general— In carrying out the Nuclear Fuel Security Program, the Secretary—
(A)
added shall—
(i)
added not later than 180 days after the date of enactment of this Act, enter into 2 or more contracts to begin acquiring not less than 100 metric tons per year of LEU by December 31, 2026 (or the earliest operationally feasible date thereafter), to ensure diverse domestic uranium mining, conversion, enrichment, and deconversion capacity and technologies, including new capacity, among U.S. nuclear energy companies;
(ii)
added 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)
added utilize only uranium produced, converted, enriched, deconverted, and reduced in—
(I)
added the United States; or
(II)
added if domestic options are not practicable, a country that is an ally or partner of the United States; and
(iv)
added 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)
added
(i)
added 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—
(I)
added funds are specifically provided for those purposes in advance in appropriations Acts enacted after the date of enactment of this Act; or
(II)
added the commitment is funded entirely by funds made available to the Secretary from the account described in subsection (i)(2)(B); and
(ii)
added may make a commitment described in clause (i) only—
(I)
added 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)
added to the extent of that up-front obligation recorded in full at that time.
(2)
added Considerations— In carrying out paragraph (1)(A)(ii), the Secretary shall consider and, if appropriate, implement—
(A)
added options to ensure the quickest availability of commercially enriched HALEU, including—
(i)
added partnerships between 2 or more commercial enrichers; and
(ii)
added utilization of up to 10-percent enriched uranium as feedstock in demonstration-scale or commercial HALEU enrichment facilities;
(B)
added options to partner with countries that are allies or partners of the United States to provide LEU and HALEU for commercial purposes;
(C)
added options that provide for an array of HALEU—
(i)
added enrichment levels;
(ii)
added output levels to meet demand; and
(iii)
added fuel forms, including uranium metal and oxide; and
(D)
added options—
(i)
added to replenish, as necessary, Department stockpiles of uranium that was intended to be downblended for other purposes, but was instead used in carrying out activities under the HALEU for Advanced Nuclear Reactor Demonstration Projects Program;
(ii)
added 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)
added to make HALEU available to other advanced nuclear reactor developers and other end-users.
(3)
added 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.
(f)
added Expansion of the American Assured Fuel Supply Program— The Secretary, in consultation with U.S. nuclear energy companies, shall—
(1)
added 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)
added in carrying out the American Assured Fuel Supply Program of the Department, as expanded under paragraph (1)—
(A)
added 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 (b);
(B)
added utilize only uranium produced, converted, and enriched in—
(i)
added the United States; or
(ii)
added if domestic options are not practicable, a country that is an ally or partner of the United States;
(C)
added make uranium available from the American Assured Fuel Supply, subject to terms and conditions determined by the Secretary to be reasonable and appropriate;
(D)
added 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)
added 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 (b).
(g)
added HALEU for Advanced Nuclear Reactor Demonstration Projects Program—
(1)
added 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)
added 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 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)
added by September 30, 2024, not less than 3 metric tons of HALEU;
(B)
added by December 31, 2025, not less than an additional 8 metric tons of HALEU; and
(C)
added by June 30, 2026, not less than an additional 10 metric tons of HALEU.
(3)
added Factors for consideration— In carrying out activities under this subsection, the Secretary shall take into consideration—
(A)
added options for providing HALEU from a stockpile of uranium owned by the Department, including—
(i)
added uranium that has been declared excess to national security needs during or prior to fiscal year 2022;
(ii)
added uranium that—
(I)
added directly meets the needs of advanced nuclear reactor developers; but
(II)
added has been previously used or fabricated for another purpose;
(iii)
added 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)
added uranium from a high-enriched uranium stockpile, which can be blended with lower assay uranium to become HALEU to meet the needs of advanced nuclear reactor developers; and
(v)
added 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)
added options for expanding, or establishing new, capabilities or infrastructure to support the processing of uranium from Department inventories;
(C)
added options for accelerating the availability of HALEU from HALEU enrichment demonstration projects of the Department;
(D)
added 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 (d)(1);
(E)
added 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 (d)(1); and
(F)
added options that combine 1 or more of the approaches described in subparagraphs (A) through (E) to meet the deadlines described in paragraph (2).
(4)
added Limitations—
(A)
added Certain services— The Secretary shall not barter or otherwise sell or transfer uranium in any form in exchange for services relating to—
(i)
added 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)
added environmental cleanup activities.
(B)
added Certain commitments— In carrying out activities under this subsection, the Secretary—
(i)
added 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—
(I)
added funds are specifically provided for those purposes in advance in appropriations Acts enacted after the date of enactment of this Act; or
(II)
added the commitment is funded entirely by funds made available to the Secretary from the account described in subsection (i)(2)(B); and
(ii)
added may make a commitment described in clause (i) only—
(I)
added 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)
added to the extent of that up-front obligation recorded in full at that time.
(5)
added Sunset— The authority of the Secretary to carry out activities under this subsection shall terminate on 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.
(h)
added Domestic sourcing considerations—
(1)
added 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)
added the activity promotes manufacturing in the United States associated with uranium supply chains; or
(B)
added the activity relies on resources, materials, or equipment developed or produced—
(i)
added in the United States; or
(ii)
added in a country that is an ally or partner of the United States by—
(I)
added the government of that country;
(II)
added an associated entity; or
(III)
added a U.S. nuclear energy company.
(2)
added 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 (b).
(i)
added Reasonable compensation—
(1)
added In general— 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.
(2)
added Availability of certain funds—
(A)
added In general— Notwithstanding section 3302(b) of title 31, United States Code, revenues received by the Secretary from the sale or transfer of fuel feed material acquired by the Secretary pursuant to a contract entered into under clause (i) or (ii) of subsection (e)(1)(A) shall—
(i)
added be deposited in the account described in subparagraph (B);
(ii)
added be available to the Secretary for carrying out the purposes of this section, to reduce the need for further appropriations for those purposes; and
(iii)
added remain available until expended.
(B)
added Revolving fund— There is established in the Treasury an account into which the revenues described in subparagraph (A) shall be—
(i)
added deposited in accordance with clause (i) of that subparagraph; and
(ii)
added made available in accordance with clauses (ii) and (iii) of that subparagraph.
(j)
added 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.
(k)
added USEC Privatization Act— The requirements of section 3112 of the USEC Privatization Act (42 U.S.C. 2297h–10) shall not apply to activities related to the Programs.
(l)
added 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, 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.
(m)
added International agreements— This section shall be applied in a manner consistent with the obligations of the United States under international agreements.
(A)
removed plan to carry out projects at or near the site of 1 or more fossil fuel electric generation facilities that are retired or scheduled to retire, including multi-unit facilities that are partially shut down—
(i)
removed to reduce the cost of—
(I)
removed infrastructure requirements;
(II)
removed transmission requirements; and
(III)
removed licensing and permitting requirements;
(ii)
removed to support the productive reuse of fossil fuel electric generation facilities that are retired or scheduled to retire; and
(iii)
removed to sustain and revitalize communities impacted by the closure of fossil fuel electric generation facilities;
(B)
removed plan to support nonelectric applications, including supplying heat for—
(i)
removed energy storage;
(ii)
removed hydrogen or other liquid and gaseous fuel or chemical production;
(iii)
removed industrial processes;
(iv)
removed desalination technologies and processes;
(v)
removed isotope production;
(vi)
removed district heating; and
(vii)
removed other applications, as the Secretary determines to be appropriate;
(C)
removed plan to support supply chain infrastructure, including manufacturing, associated with advanced nuclear reactors or related technologies;
(D)
removed have implemented or demonstrated the ability to successfully implement workforce training or retraining programs to train workers to perform activities described in this section; and
(E)
removed plan to be cost competitive.
(e)
removed Cost share— Section 988 of the Energy Policy Act of 2005 (42 U.S.C. 16352) shall apply to Federal financial assistance provided under the program.

Sec. 3 Report on civil nuclear credit program

changed Section 954(b) Not later than 180 days after the date of enactment of this Act, the Secretary of Energy Policy Act shall submit to the appropriate committees of 2005 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. 16274(b)) is amended—18753), taking into account—

(1)
changed in the subsection heading, zero-emission nuclear power production credit authorized by striking “Graduate”;section 45U of the Internal Revenue Code of 1986; and
(2)
changed by striking “graduate” each place it appears;any increased fuel costs associated with the use of domestic fuel that may arise from the implementation of that program.
(3)
removed in paragraph (2)(A), by inserting “community colleges, trade schools, registered apprenticeship programs, pre-apprenticeship programs” after “universities,”;
(4)
removed in paragraph (3), by striking “2021 through 2025” and inserting “2022 through 2026”;
(5)
removed by redesignating paragraph (3) as paragraph (4); and
(6)
removed by inserting after paragraph (2) the following:

removed “(3) 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—

removed “(A) research and development;

removed “(B) construction and operation;

removed “(C) associated supply chains; and

removed “(D) workforce training and retraining to support transitioning workforces.”