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)
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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)
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the Nuclear Fuel Security Program established under subsection (d)(1);
(B)
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the American Assured Fuel Supply Program of the Department; and
(C)
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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—
(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)
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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.
(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)
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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
(I)
removed
the construction planning of advanced nuclear reactors; and
(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—
(i)
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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
(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)
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output levels to meet demand; and
(iii)
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fuel forms, including uranium metal and oxide; and
(i)
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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)
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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)
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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;
(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).
(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.