[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 452 Introduced in Senate (IS)]
<DOC>
118th CONGRESS
1st Session
S. 452
To require the Secretary of Energy to establish a Nuclear Fuel Security
Program, expand the American Assured Fuel Supply Program, and submit a
report on a civil nuclear credit program, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
February 15, 2023
Mr. Manchin (for himself, Mr. Barrasso, and Mr. Risch) introduced the
following bill; which was read twice and referred to the Committee on
Energy and Natural Resources
_______________________________________________________________________
A BILL
To require the Secretary of Energy to establish a Nuclear Fuel Security
Program, expand the American Assured Fuel Supply Program, and submit a
report on a civil nuclear credit program, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Nuclear Fuel Security Act of 2023''.
SEC. 2. U.S. NUCLEAR FUEL SECURITY INITIATIVE.
(a) Sense of Congress.--It is the sense of Congress that--
(1) the Department should--
(A) prioritize activities to increase 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.
(b) Objectives.--The objectives of this section are--
(1) to expeditiously increase 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;
(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.
(c) 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) Programs.--The term ``Programs'' means--
(A) the Nuclear Fuel Security Program established
under subsection (d)(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 (d)(3).
(9) Secretary.--The term ``Secretary'' means the Secretary
of Energy.
(10) 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.
(d) Establishment and Expansion of Programs.--The Secretary,
consistent with the objectives described in subsection (b), shall--
(1) establish a program, to be known as the ``Nuclear Fuel
Security Program'', to increase the quantity of LEU and HALEU
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.
(e) Nuclear Fuel Security Program.--
(1) In general.--In carrying out the Nuclear Fuel Security
Program, the Secretary--
(A) shall--
(i) 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 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--
(I) funds are specifically provided for
those purposes in advance in appropriations
Acts enacted after the date of enactment of
this Act; or
(II) the commitment is funded entirely by
funds made available to the Secretary from the
account described in subsection (i)(2)(B); 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.
(f) 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 (b);
(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 (b).
(g) 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, 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 (d)(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 (d)(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--
(I) funds are specifically provided
for those purposes in advance in
appropriations Acts enacted after the
date of enactment of this Act; or
(II) the commitment is funded
entirely by funds made available to the
Secretary from the account described in
subsection (i)(2)(B); 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 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) 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 (b).
(i) Reasonable Compensation.--
(1) 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) Availability of certain funds.--
(A) 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) be deposited in the account described
in subparagraph (B);
(ii) 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) remain available until expended.
(B) Revolving fund.--There is established in the
Treasury an account into which the revenues described
in subparagraph (A) shall be--
(i) deposited in accordance with clause (i)
of that subparagraph; and
(ii) made available in accordance with
clauses (ii) and (iii) of that subparagraph.
(j) 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) 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.
(l) 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) International Agreements.--This section shall be applied in a
manner consistent with the obligations of the United States under
international agreements.
(n) Authorization of Appropriations.--In addition to amounts
otherwise available, there are authorized to be appropriated to the
Secretary to carry out activities under this section $3,500,000,000 for
fiscal year 2023, to remain available until September 30, 2032, of
which the Secretary may use up to $1,000,000,000 by September 30, 2028,
to carry out the HALEU for Advanced Nuclear Reactor Demonstration
Projects Program.
SEC. 3. REPORT ON CIVIL NUCLEAR CREDIT PROGRAM.
Not later than 180 days after the date of enactment of this Act,
the Secretary of Energy 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.
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