--- kind: "section" citation: "42 U.S.C. § 16014" title: "42" title_heading: "The Public Health and Welfare" number: "16014" heading: "Standby support for certain nuclear plant delays" release: "119-102" date: "2026-07-12" url: "https://uscodex.org/usc/42/16014" units: - "Chapter 149 — National Energy Policy and Programs" - "Subchapter VI — Nuclear Matters" - "Part A — General Nuclear Matters" --- # §16014. Standby support for certain nuclear plant delays - (a) **Definitions—** In this section: - (1) **Advanced nuclear facility—** The term “advanced nuclear facility” means any nuclear facility the reactor design for which is approved after December 31, 1993, by the [Commission](/usc/42/16451.md?p=3) (and such design or a substantially similar design of comparable capacity was not approved on or before that date). - (2) **Combined license—** The term “combined license” means a combined [construction](/usc/42/300s–3.md?p=7) and operating license for an advanced nuclear facility issued by the [Commission](/usc/42/16451.md?p=3). - (3) **Commission—** The term “[Commission](/usc/42/16451.md?p=3)” means the Nuclear Regulatory [Commission](/usc/42/16451.md?p=3). - (4) **Sponsor—** The term “sponsor” means a [person](/usc/42/16451.md?p=12) who has applied for or been granted a combined license. - (b) **Contract authority—** - (1) **In general—** The [Secretary](/usc/42/15801.md?p=4) may enter into contracts under this section with sponsors of an advanced nuclear facility that cover a total of 6 reactors, with the 6 reactors consisting of not more than 3 different reactor designs, in accordance with [paragraph (2)](#b-2). - (2) **Requirement for contracts—** - (A) **Definition of loan cost—** In this paragraph, the term “loan cost” has the meaning given the term “cost of a [loan guarantee](/usc/42/16371.md?p=8)” under [section 661a(5)(C) of title 2](/usc/2/661a.md?p=5-C). - (B) **Establishment of accounts—** There is established in the [Department](/usc/42/15801.md?p=1) 2 separate accounts, which shall be known as the— - (i) “Standby Support Program Account”; and - (ii) “Standby Support Grant Account”. - (C) **Requirement—** The [Secretary](/usc/42/15801.md?p=4) shall not enter into a contract under this section unless the [Secretary](/usc/42/15801.md?p=4) deposits— - (i) in the Standby Support Program Account established under [subparagraph (B)](#b-2-B), funds appropriated to the [Secretary](/usc/42/15801.md?p=4) in advance of the contract or a combination of appropriated funds and [loan guarantee](/usc/42/16371.md?p=8) fees that are in an amount sufficient to cover the loan costs described in [subsection (d)(5)(A)](#d-5-A); and - (ii) in the Standby Support Grant Account established under [subparagraph (B)](#b-2-B), funds appropriated to the [Secretary](/usc/42/15801.md?p=4) in advance of the contract, paid to the [Secretary](/usc/42/15801.md?p=4) by the sponsor of the advanced nuclear facility, or a combination of appropriations and payments that are in an amount sufficient[^1] cover the costs described in subparagraphs [(B)](#d-5-B), (C), and (D) of subsection (d)(5). - (c) **Covered delays—** - (1) **Inclusions—** Under each contract authorized by this section, the [Secretary](/usc/42/15801.md?p=4) shall pay the costs specified in [subsection (d)](#d), using funds appropriated or collected for the covered costs, if full power operation of the advanced nuclear facility is delayed by— - (A) the failure of the [Commission](/usc/42/16451.md?p=3) to comply with schedules for review and approval of inspections, tests, analyses, and acceptance criteria established under the combined license or the conduct of preoperational hearings by the [Commission](/usc/42/16451.md?p=3) for the advanced nuclear facility; or - (B) litigation that delays the commencement of full-power operations of the advanced nuclear facility. - (2) **Exclusions—** The [Secretary](/usc/42/15801.md?p=4) may not enter into any contract under this section that would obligate the [Secretary](/usc/42/15801.md?p=4) to pay any costs resulting from— - (A) the failure of the sponsor to take any action required by law or regulation; - (B) events within the control of the sponsor; or - (C) normal business risks. - (d) **Covered costs—** - (1) **In general—** Subject to paragraphs [(2)](#d-2), [(3)](#d-3), and [(4)](#d-4), the costs that shall be paid by the [Secretary](/usc/42/15801.md?p=4) pursuant to a contract entered into under this section are the costs that result from a delay covered by the contract. - (2) **Initial 2 reactors—** In the case of the first 2 reactors that receive combined licenses and on which [construction](/usc/42/300s–3.md?p=7) is commenced, the [Secretary](/usc/42/15801.md?p=4) shall pay— - (A) 100 percent of the covered costs of delay; but - (B) not more than $500,000,000 per contract. - (3) **Subsequent 4 reactors—** In the case of the next 4 reactors that receive a combined license and on which [construction](/usc/42/300s–3.md?p=7) is commenced, the [Secretary](/usc/42/15801.md?p=4) shall pay— - (A) 50 percent of the covered costs of delay that occur after the initial 180-day period of covered delay; but - (B) not more than $250,000,000 per contract. - (4) **Conditions on payment of certain covered costs—** - (A) **In general—** The obligation of the [Secretary](/usc/42/15801.md?p=4) to pay the covered costs described in [subparagraph (B)](#d-5-B) of paragraph (5) is subject to the [Secretary](/usc/42/15801.md?p=4) receiving from appropriations or payments from other non-Federal sources amounts sufficient to pay the covered costs. - (B) **Non-Federal sources—** The [Secretary](/usc/42/15801.md?p=4) may receive and accept payments from any non-Federal source, which shall be made available without further appropriation for the payment of the covered costs. - (5) **Types of covered costs—** Subject to paragraphs [(2)](#d-2), [(3)](#d-3), and [(4)](#d-4), the contract entered into under this section for an advanced nuclear facility shall include as covered costs those costs that result from a delay during [construction](/usc/42/300s–3.md?p=7) and in gaining approval for fuel loading and full-power operation, including— - (A) principal or interest on any debt obligation of an advanced nuclear facility owned by a non-Federal entity; and - (B) the incremental difference between— - (i) the fair market price of power purchased to meet the contractual supply agreements that would have been met by the advanced nuclear facility but for the delay; and - (ii) the contractual price of power from the advanced nuclear facility subject to the delay. - (e) **Requirements—** Any contract between a sponsor and the [Secretary](/usc/42/15801.md?p=4) covering an advanced nuclear facility under this section shall require the sponsor to use due diligence to shorten, and to end, the delay covered by the contract. - (f) **Reports—** For each advanced nuclear facility that is covered by a contract under this section, the [Commission](/usc/42/16451.md?p=3) shall submit to Congress and the [Secretary](/usc/42/15801.md?p=4) quarterly reports summarizing the status of licensing actions associated with the advanced nuclear facility. - (g) **Regulations—** - (1) **In general—** Subject to paragraphs [(2)](#g-2) and [(3)](#g-3), the [Secretary](/usc/42/15801.md?p=4) shall issue such regulations as are necessary to carry out this section. - (2) **Interim final rulemaking—** Not later than 270 days after August 8, 2005, the [Secretary](/usc/42/15801.md?p=4) shall issue for public comment an interim final rule regulating contracts authorized by this section. - (3) **Notice of final rulemaking—** Not later than 1 year after August 8, 2005, the [Secretary](/usc/42/15801.md?p=4) shall issue a notice of final rulemaking regulating the contracts. - (h) **Authorization of appropriations—** There are authorized to be appropriated such sums as are necessary to carry out this section. ## Footnotes [^1]: So in original. Probably should be followed by “to”. ## Source credit (Pub. L. 109–58, title VI, § 638, Aug. 8, 2005, 119 Stat. 791.)