[House Report 115-1056]
[From the U.S. Government Publishing Office]
115th Congress } { Report
HOUSE OF REPRESENTATIVES
2d Session } { 115-1056
======================================================================
ADVANCED NUCLEAR FUEL AVAILABILITY ACT
_______
November 29, 2018.--Committed to the Committee of the Whole House on
the State of the Union and ordered to be printed
_______
Mr. Walden, from the Committee on Energy and Commerce, submitted the
following
R E P O R T
[To accompany H.R. 6140]
[Including cost estimate of the Congressional Budget Office]
The Committee on Energy and Commerce, to whom was referred
the bill (H.R. 6140) to require the Secretary of Energy to
establish and carry out a program to support the availability
of HA-LEU for domestic commercial use, and for other purposes,
having considered the same, report favorably thereon with an
amendment and recommend that the bill as amended do pass.
CONTENTS
Page
Purpose and Summary.............................................. 3
Background and Need for Legislation.............................. 3
Committee Action................................................. 6
Oversight Findings and Recommendations........................... 7
New Budget Authority, Entitlement Authority, and Tax Expenditures 7
Congressional Budget Office Estimate............................. 7
Federal Mandates Statement....................................... 11
Statement of General Performance Goals and Objectives............ 11
Duplication of Federal Programs.................................. 11
Committee Cost Estimate.......................................... 11
Earmark, Limited Tax Benefits, and Limited Tariff Benefits....... 12
Disclosure of Directed Rule Makings.............................. 12
Advisory Committee Statement..................................... 12
Applicability to Legislative Branch.............................. 12
Section-by-Section Analysis of the Legislation................... 12
Changes in Existing Law Made by the Bill, as Reported............ 13
The amendment is as follows:
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Advanced Nuclear Fuel Availability
Act''.
SEC. 2. PROGRAM.
(a) Establishment.--The Secretary shall establish and carry out,
through the Office of Nuclear Energy, a program to support the
availability of HA-LEU for domestic commercial use.
(b) Program Elements.--In carrying out the program under subsection
(a), the Secretary--
(1) may provide financial assistance to assist commercial
entities to design and license transportation packages for HA-
LEU, including canisters for metal, gas, and other HA-LEU
compositions;
(2) shall, to the extent practicable--
(A) by January 1, 2021, have commercial entities
submit such transportation package designs to the
Commission for certification by the Commission under
part 71 of title 10, Code of Federal Regulations; and
(B) encourage the Commission to have such
transportation package designs so certified by the
Commission by January 1, 2023;
(3) not later than January 1, 2020, shall submit to Congress
a report on the Department's uranium inventory that may be
available to be processed to HA-LEU for purposes of such
program, which may not include any uranium allocated by the
Secretary for use in support of the atomic energy defense
activities of the National Nuclear Security Administration;
(4) not later than one year after the date of enactment of
this Act, and biennially thereafter through September 30, 2025,
shall conduct a survey of stakeholders to estimate the quantity
of HA-LEU necessary for domestic commercial use for each of the
five subsequent years;
(5) shall assess options available for the Secretary to
acquire HA-LEU for such program, including an assessment, for
each such option, of the cost and amount of time required;
(6) shall establish a consortium, which may include entities
involved in any stage of the nuclear fuel cycle, to partner
with the Department to support the availability of HA-LEU for
domestic commercial use, including by--
(A) providing information to the Secretary for
purposes of surveys conducted under paragraph (4); and
(B) purchasing HA-LEU made available to members of
the consortium by the Secretary under the program;
(7) shall, prior to acquiring HA-LEU under paragraph (8), in
coordination with the consortium established pursuant to
paragraph (6), develop a schedule for cost recovery of HA-LEU
made available to members of the consortium pursuant to
paragraph (8);
(8) may, beginning not later than 3 years after the
establishment of a consortium under paragraph (6), acquire HA-
LEU, in order, to the extent practicable, to make such HA-LEU
available to members of the consortium beginning not later than
January 1, 2025, in amounts that are consistent, to the extent
practicable, with the quantities estimated under the surveys
conducted under paragraph (4); and
(9) shall develop, in consultation with the Commission,
criticality benchmark data to assist the Commission in--
(A) the licensing and regulation of category II spent
nuclear material fuel fabrication and enrichment
facilities under part 70 of title 10, Code of Federal
Regulations; and
(B) certification of transportation packages under
part 71 of title 10, Code of Federal Regulations.
(c) Applicability of USEC Privatization Act.--The requirements of
subparagraphs (A) and (C) of section 3112(d)(2) of the USEC
Privatization Act (42 U.S.C. 2297h-10(d)(2)) shall apply to a sale or
transfer of HA-LEU by the Secretary to a member of the consortium under
this section.
(d) Funding for Transportation Package Design.--
(1) Cost share.--The Secretary shall ensure that not less
than 20 percent of the costs of design and license activities
carried out pursuant to subsection (b)(1) are paid by a non-
Federal entity.
(2) Authorization of appropriations.--There are authorized to
be appropriated to carry out subsection (b)(1)--
(A) $1,500,000 for fiscal year 2019;
(B) $1,500,000 for fiscal year 2020; and
(C) $1,500,000 for fiscal year 2021.
(e) Sunset.--The authority of the Secretary to carry out the program
under this section shall expire on September 30, 2033.
SEC. 3. REPORT TO CONGRESS.
Not later than 12 months after the date of enactment of this Act, the
Commission shall submit to Congress a report that includes--
(1) identification of updates to regulations, certifications,
and other regulatory policies that the Commission determines
are necessary in order for HA-LEU to be commercially available,
including--
(A) guidance for material control and accountability
of category II special nuclear material;
(B) certifications relating to transportation
packaging for HA-LEU; and
(C) licensing of enrichment, conversion, and fuel
fabrication facilities for HA-LEU, and associated
physical security plans for such facilities;
(2) a description of such updates; and
(3) a timeline to complete such updates.
SEC. 4. DEFINITIONS.
In this Act:
(1) Commission.--The term ``Commission'' means the Nuclear
Regulatory Commission.
(2) Department.--The term ``Department'' means Department of
Energy.
(3) HA-LEU.--The term ``HA-LEU'' means high-assay low-
enriched uranium.
(4) High-assay low-enriched uranium.--The term ``high-assay
low-enriched uranium'' means uranium having an assay greater
than 5.0 percent and less than 20.0 percent enrichment of the
uranium-235 isotope.
(5) Secretary.--The term ``Secretary'' means the Secretary of
Energy.
PURPOSE AND SUMMARY
H.R. 6140 was introduced on June 19, 2018, by Rep. Bill
Flores (R-TX) with Rep. Jerry McNerney (D-CA). The legislation
addresses the need to develop and deploy advanced nuclear fuel,
known as high-assay low-enriched uranium (HA-LEU), for
commercial use.
BACKGROUND AND NEED FOR LEGISLATION
The current fleet of commercial operating nuclear power
plants were the extension of policy and technology choices that
emerged during the development of the United States' nuclear
industry and naval nuclear propulsion programs. Admiral Hyman
Rickover's selection of a light-water reactor (LWR) design for
use as naval propulsion translated to a nuclear infrastructure
supply chain that supported the commercial deployment of large
LWR technologies.
LWR designs use uranium enriched below five percent for
sustained nuclear reactions, which produces heat to generate
electricity. The reactors are designed to provide constant
output, or baseload electricity, with little flexibility to
adjust output. The reactors range in electric output from 550
megawatts to over 1,000 megawatts.
A number of private companies are currently pursuing
advanced nuclear reactor designs. Many of the designs may
provide a smaller and more versatile electric output, ``load-
following'' capabilities, or co-generation benefits, such as
excess heat for industrial purposes. To maximize reactor
performance, the advanced reactor designs would utilize
uranium-235 isotopes (U-235) enriched at levels greater than
five percent and less than 20 percent. This material, known as
high-assay low-enriched uranium, differs from the LEU utilized
in the fleet of existing commercial nuclear power plants.
Challenges associated with advanced nuclear technologies
A recent survey of companies working to develop new
technologies identified HA-LEU as the most significant issue to
address.\1\ To ensure that HA-LEU is commercially available for
the initial deployment of advanced reactors, commercial
vendors, the Nuclear Regulatory Commission (NRC), and the
Department of Energy (DOE) will have to complete a series of
actions to build a supply chain. These include procuring and
enriching uranium to the necessary levels, designing and
securing NRC certification of transportation packages, and
making necessary changes to licenses issued to fuel fabrication
and commercial enrichment facilities.
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\1\Nuclear Energy Institute, ``Addressing the Challenges with
Establishing the Infrastructure for the front end of the Fuel Cycle for
Advanced Reactors,'' Jan. 2018.
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The Atomic Energy Act (AEA), the primary statute governing
peaceful use of atomic energy technology, defines enriched
uranium as Special Nuclear Material (SNM). Any person
receiving, possessing, using, or transferring SNM must have a
license, with different licenses required depending on the
enrichment level.\2\ Per NRC regulations, SNM is separated into
three categories: Category 1, which encompasses U-235 enriched
greater than 20 percent, uranium-233, and plutonium; Category
2, which covers U-235 enriched between 10 percent and 20
percent; and Category 3, which includes U-235 enriched up to 10
percent.\3\ Under these guidelines, HA-LEU would necessitate a
Category 2 SNM facility, but at present, the only operating
commercial fuel fabrication facilities are licensed for
Category 3. Upgrading a facility to Category 2 presents a major
regulatory challenge to the wider use of this fuel.\4\
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\2\10 CFR Sec. 70.1-70.2
\3\10 CFR Sec. 70.4.
\4\To upgrade one of the existing Category 3 facilities to a
Category 2 facility, the operator would have to file a license
modification application with the NRC, which must contain the basis for
the changes as well as a detailed description of how the change would
affect safety of the workers, the public, and the environment. Upon
approval, Category 2 facilities are subject to considerably more
stringent reporting and security requirements, as well as a different
fee structure.
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Legislative provisions and purpose
H.R. 6140 provides a direct path to align advanced nuclear
fuel supply with initial demand for the deployment of next
generation nuclear technologies. The program authorized by the
legislation addresses targeted challenges that are most
critical and urgent to provide timely HA-LEU development.
The nation's sole NRC-licensed enrichment facility is
currently operated by Urenco, USA and located in Eunice, New
Mexico. In testimony to the Subcommittee on Energy on May 22,
2018, Mellissa Mann, the President of Urenco, USA, noted that
with adequate investment certainty and predictability with
associated regulatory steps, Urenco's facility could be
developed to enrich uranium to the necessary levels to
manufacture HA-LEU.
The Committee is aware of long-term needs for a domestic-
owned enrichment facility for atomic energy defense purposes.
The National Nuclear Security Administration (NNSA) states that
DOE currently has adequate uranium for Naval Reactor Program
needs until 2060.\5\ NNSA has also entered into a Memorandum of
Understanding (MOU) with the Tennessee Valley Authority to
down-blend HEU in support of national security missions. The
MOU will extend the deadline to provide new enrichment needs
for national security needs by nearly a decade. While NNSA
considers its enrichment capability needs, GAO found that NNSA
must better define enrichment needs and associated cost
estimates. The Congressional defense committees will continue
to monitor enrichment needs to meet national security missions.
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\5\Government Accountability Office, ``Nuclear Weapons NNSA Should
Clarify Long-Term Uranium Enrichment Mission Needs and Improve
Technology Cost Estimates,'' GAO-18-126. February 2018.
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It is not the intent of the Committee for HA-LEU needs to
artificially support or justify reconstituting enrichment
capabilities for defense programs, as those needs require a
much longer timeframe than what H.R. 6140 will address.
Transportation packages are currently certified to move
small quantities of HA-LEU used for research reactors, but the
Committee recognizes the quantity of HA-LEU for commercial use
will need larger, more economical packaging. Subsection 2(a)
and (b) of H.R. 6140 will provide a discreet level of funding
to develop HA-LEU transportation packages.
DOE maintains an inventory of uranium that supports the
Department's broad missions. H.R. 6140 requires the Secretary
to assess DOE's inventory to determine what material may be
available to support commercial HA-LEU deployment. Uranium that
is allocated to atomic energy defense programs shall not be
considered to support commercial needs, due to the obligations
to provide for long-term national defense activities.
To assist private entities to secure HA-LEU nuclear fuel,
DOE is directed to establish a public-private partnership as a
consortium. The consortium will capture economies of scale to
reduce pricing, while still assuring private entities develop a
robust HA-LEU market to establish a long-term supply chain.
The consortium allows advanced nuclear development
companies to aggregate demand, which will provide investment
certainty for the nuclear supply chain including uranium
production, conversion, enrichment, and fuel fabrication. Due
to stringent materials management controls imposed through the
AEA, DOE's participation should provide the benefit of uranium
management expertise in the Department, as well as the National
Laboratory system. For example, DOE has scientific
infrastructure to gather scientific data, known as criticality
benchmark data, to validate NRC's regulations to predict
potential safety issues.
To align supply and demand, DOE is required to conduct
biennial surveys through 2025 to project fuel demand, which
will then be used to inform front-end industrial needs. It is
the Committee's intent that information to meet the required
Department's survey will be collected in a manner that protects
proprietary business information. By requiring DOE to conduct a
biennial survey, the Committee intends for the Department only
to facilitate the acquisition of material to meet demand and
reduce the potential for oversupply. In the event that HA-LEU
is acquired in excess of commercial needs, the Department may
have the option to purchase the material at cost for its own
research and programmatic needs, including use for medical
isotope production, and in doing so extend the timeframe for
DOE to rebuild its uranium inventory. However, it is the
Committee's intent that the primary purpose of the program
authorized by H.R. 6140 is to support commercial use.
It is also the Committee's intent that the program
authorized for HA-LEU will not become a permanent DOE program.
Subsection 2(e) of the legislation sunsets the Secretary's
authority for this program in 2033. The Committee believes 15
years provides an appropriate opportunity for first-of-a-kind
nuclear technologies to be deployed while the HA-LEU
infrastructure is established and matured to fully support
commercial demand.
The legislation requires that any HA-LEU made available to
consortium members for commercial use recover the cost of such
material. The Committee recognizes the financial, logistics,
and regulatory challenges associated with developing and
managing radioactive material. The intent of the legislation is
to reduce the overall cost burden associated with developing a
new supply chain, not to have the Department subsidize the
material.
During the Committee's markup of the legislation, H.R. 6140
was amended to clarify that HA-LEU would only be transferred at
fair market value, as required by the USEC Privatization Act.
Nuclear fuel made available under the program will not
necessitate a Secretarial determination regarding market
impacts that apply to the Department's existing uranium
inventory because the HA-LEU could be acquired by DOE for the
sole purpose of supporting market development. Such Secretarial
determinations are time consuming and would result in a
cumbersome program, thereby limiting the efficiency of the HA-
LEU program.
Many steps must be initiated concurrently to successfully
provide HA-LEU in the timeframe necessary for first movers. For
example, the NRC's regulatory requirements applicable to
physical security and material accountability for Category 2
facilities may require an analysis due to the lack of existing
licensed Category 2 facilities. The report required under
section 3 of H.R. 6140 does not prejudge what regulations,
certifications, or policies may need to be updated; however,
the report should be comprehensive to provide certainty for
fuel cycle facility licensees and associated nuclear supplier
companies. Established regulations must be predictable and
adequate for long-term private sector investment.
COMMITTEE ACTION
On May 22, 2018, the Subcommittee on Energy held a hearing
on H.R. 6140. The Subcommittee received testimony from:
Brent Park, Deputy Administrator for Defense
Nuclear Nonproliferation, National Nuclear Security
Administration, Department of Energy;
Ed McGinnis, Principal Deputy Assistant
Secretary, Office of Nuclear Energy, Department of
Energy;
Jeffrey S. Merrifield, Partner, Pillsbury
Winthrop Shaw Pittman LLP; Advisor, ClearPath
Foundation;
Melissa Mann, President, URENCO USA, Inc.;
Member, U.S. Nuclear Industry Council;
Nick Irvin, Director, Research and
Development for Strategy and Advanced Nuclear
Technology, Southern Company; Member, Advanced Reactor
Working Group, Nuclear Energy Institute; and,
Edwin Lyman, Senior Scientist, Global
Security Program, Union of Concerned Scientists.
On June 21, 2018, the Subcommittee on Energy met in open
markup session and forwarded H.R. 6140, without amendment, to
the full Committee by a voice vote. On July 12, 2018, the full
Committee on Energy and Commerce met in open markup session and
ordered H.R. 6140, as amended, favorably reported to the House
by a voice vote.
OVERSIGHT FINDINGS AND RECOMMENDATIONS
Pursuant to clause 2(b)(1) of rule X and clause 3(c)(1) of
rule XIII, the Committee held a hearing and made findings that
are reflected in this report.
NEW BUDGET AUTHORITY, ENTITLEMENT AUTHORITY, AND TAX EXPENDITURES
Pursuant to clause 3(c)(2) of rule XIII, the Committee
finds that H.R. 6140 would result in no new or increased budget
authority, entitlement authority, or tax expenditures or
revenues.
CONGRESSIONAL BUDGET OFFICE ESTIMATE
Pursuant to clause 3(c)(3) of rule XIII, the following is
the cost estimate provided by the Congressional Budget Office
pursuant to section 402 of the Congressional Budget Act of
1974:
U.S. Congress,
Congressional Budget Office,
Washington, DC, November 28, 2018.
Hon. Greg Walden,
Chairman, Committee on Energy and Commerce,
House of Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 6140, the Advanced
Nuclear Fuel Availability Act.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Kathleen
Gramp.
Sincerely,
Keith Hall,
Director.
Enclosure.
H.R. 6140--Advanced Nuclear Fuel Availability Act
Summary: H.R. 6140 would direct the Department of Energy
(DOE) to conduct various studies and activities related to the
supply of new types of fuels for commercial nuclear reactors.
In particular, the bill would authorize DOE to acquire certain
materials on behalf of other entities and to develop a schedule
for recovering those costs. Other provisions in the bill would
authorize the appropriation of $1.5 million for each of fiscal
years 2019 through 2021 to assist in the development of new
methods for transporting new nuclear materials. Finally, DOE's
authority to implement the programs would expire at the end of
2033.
CBO estimates that implementing H.R. 6140 would increase
net direct spending by $120 million over the 2019-2028 period
as a result of provisions authorizing DOE to purchase
materials. CBO estimates, however, that this net cost would be
offset in subsequent years by income from commercial sales of
the material. In addition, CBO estimates that the programmatic
costs associated with implementing the bill would total $20
million over the 2019-2023 period, assuming appropriation of
the authorized amounts.
Because enacting H.R. 6140 would affect direct spending,
pay-as-you-go procedures apply. The bill would not affect
revenues.
CBO estimates that enacting H.R. 6140 would not increase
net direct spending or on-budget deficits by more than $5
billion in any of the four consecutive 10-year periods
beginning in 2029.
H.R. 6140 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act (UMRA).
Estimated cost to the Federal Government: The estimated
budgetary effect of H.R. 6140 is shown in the following table.
The costs of the legislation fall within budget function 270
(energy).
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By fiscal year, in millions of dollars--
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2019- 2019-
2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2023 2028
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INCREASES IN DIRECT SPENDING
Acquisition Costs:
Estimated Budget Authority............................ 0 0 150 0 0 0 1 5 5 5 150 166
Estimated Outlays..................................... 0 0 8 15 45 45 38 5 5 5 68 166
Cost Recovery Fees:
Estimated Budget Authority............................ 0 0 0 0 0 0 -1 -9 -18 -18 0 -46
Estimated Outlays..................................... 0 0 0 0 0 0 -1 -9 -18 -18 0 -46
Total Direct Spending:
Estimated Budget Authority........................ 0 0 150 0 0 0 0 -4 -13 -13 150 120
Estimated Outlays................................. 0 0 8 15 45 45 37 -4 -13 -13 68 120
INCREASES IN SPENDING SUBJECT TO APPROPRIATION
Estimated Authorization Level............................. 2 4 6 6 5 5 5 5 5 5 23 48
Estimated Outlays......................................... * 3 5 7 5 5 5 5 5 5 20 45
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* = between zero and $500,000.
Basis of estimate: For this estimate, CBO assumes that the
legislation will be enacted near the start of 2019.
CBO estimates that implementing purchase agreements
authorized by H.R. 6140 would increase net direct spending by
$120 million over the 2019-2028 period, reflecting gross
capital and operating costs of $166 million and offsetting
receipts from recoveries of $46 million. CBO estimates that the
net costs incurred through 2028 would be offset in subsequent
years by income from sales of the materials. In addition, CBO
estimates that implementing the bill would cost $20 million
over the 2019-2023 period, assuming appropriation of the
authorized and necessary amounts.
Direct spending
H.R. 6140 would authorize DOE to acquire high-assay, low-
enriched uranium (HALEU) for new commercial uses. DOE would be
directed to establish a consortium of entitiesinvolved in the
nuclear fuel cycle to assess the potential supply and demand for such
materials and to develop a schedule for recovering any acquisition
costs that the department incurs. Under the bill, DOE would be
expressly prohibited from including materials allocated for defense
purposes in its assessment of available supplies. Because the
legislation does not expressly make those transactions subject to
further appropriation, CBO views the acquisition authority as a form of
direct spending.
Background on HA-LEU. Producing fuels for nuclear reactors
involves a multistep process to turn uranium ore into a form
that can be used to generate electricity. Historically,
electric utilities have purchased the raw materials and then
entered into contracts with domestic or foreign companies to
increase--or enrich--the concentration of uranium isotope from
less than 1 percent to up to 3 percent to 5 percent. Such
materials are known as low-enriched uranium (LEU). Most
enrichment services are purchased under long-term contracts.
According to academic and industry experts, most new
technologies for advanced nuclear reactors will require uranium
with higher concentrations of uranium isotopes, ranging from
over 6 percent to nearly 20 percent. In addition, some have
proposed using such materials--known as high-assay LEU, or HA-
LEU--for new types of fuel for conventional nuclear power
plants. At this time, however, there are no large commercial
sources of HA-LEU anywhere in the world.\1\
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\1\DOE produces small quantities of HA-LEU for research and medical
purposes by modifying materials in defense stockpiles, but most of the
stockpiled materials available for civilian uses are projected to be
used by 2030. Although some foreign entities also produce materials
that could be imported for use by commercial users, such imports would
require specialized licenses, transportation systems, and marketing
arrangements. For more information, see Massachusetts Institute of
Technology, The Future of Nuclear Energy in a Carbon-Constrained World:
An Interdisciplinary MIT Study (2018), p. 88, http://tinyurl.com/
ycdxnugt.
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Private companies have been reluctant to invest in new
enrichment facilities for HA-LEU because of uncertainty
surrounding the technical and economic viability of new nuclear
technologies. A recent industry assessment suggests that the
annual demand for HA-LEU in the 2020s could range from less
than 5 metric tons to more than 100 metric tons a year--the
equivalent of less than 1 percent to 5 percent, respectively,
of the current demand for conventional LEU.\2\ In addition, the
timing of any sales will depend on the availability of new
shipping containers and fuel fabrication facilities, which may
take several years to design and build.
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\2\See Nuclear Energy Institute, letter to Secretary Rick Perry on
the Need for High-Assay Low-Enriched Uranium (July 5, 2018), http://
tinyurl.com/yaqvkwoc.
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Estimated Budgetary Effects of the Bill. H.R. 6140 would
direct DOE to make HA-LEU available, to the extent practical,
for commercial uses by the end of 2025. CBO anticipates that
DOE would acquire the materials by making commitments to
purchase HA-LEU that would be produced in the future. Assuming
those agreements follow standard industry practice, CBO expects
that the value of DOE's purchases would cover the capital cost
of the new production facilities as well as the operating costs
incurred during the first 8 to 10 years of production. For this
estimate, CBO assumes DOE would minimize the net cost of the
HA-LEU by reimbursing the enrichers' construction and operating
costs as they are incurred.
The cost of implementing H.R. 6140 would depend on the type
and scale of enrichment services purchased by DOE. Based on
information from industry experts and historical trends in
enrichment prices and costs, CBO estimates that DOE would spend
between $100 million and $200 million for new enrichment
capacity for HA-LEU, with a midpoint of $150 million. That
estimated cost reflects CBO's expectation that DOE would
require buyers to provide raw materials in the form of LEU and
that DOE would purchase the minimum quantities necessary for
testing and demonstrating new nuclear reactor and fuel
technologies, which could range from a few metric tons to over
10 metric tons per year.
Using information from industry studies, CBO estimates that
most of the construction-related outlays would occur by 2026,
assuming that developers receive the necessary regulatory and
marketing approvals in the next few years.\3\ Once the
facilities are operational, CBO estimates, DOE would spend
another $5 million a year for operating expenses, or a total of
$16 million over the 2019-2028 period. CBO estimates that DOE
would recover about one-quarter of the capital costs and two-
thirds of the operating costs by 2028, resulting in receipts
totaling $46 million over the 10-year period.
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\3\For more information, see Nuclear Energy Institute, Addressing
the Challenges with Establishing the Infrastructure for the front-end
of the Fuel Cycle for Advanced Reactors, NEI White Paper (January
2018), http://tinyurl.com/ydamptz6 (PDF, 504 KB).
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Spending subject to appropriation
CBO estimates that implementing H.R. 6140 would cost $20
million over the 2019-2023 period, assuming appropriation of
the authorized amounts. That total includes the $4.5 million
specifically authorized for DOE to assist in the design and
licensing of transportation systems needed to transport HA-LEU
and related materials.
CBO also estimates that DOE would spend about $16 million
over the 2019-2023 period to operate the consortium and
implement agreements to acquire HA-LEU and to sell it to
commercial users. For this estimate, CBO assumes that DOE would
review and execute about 10 contracts under the acquisition
program and that the administrative costs of processing and
servicing those agreements would be similar to the costs
incurred by DOE in processing applications for loans and loan
guarantees.
In addition, CBO expects that implementing H.R. 6140 could
affect the workload of the Nuclear Regulatory Commission (NRC),
which licenses and regulates civilian facilities that use
radioactive materials. In particular, that agency would be
heavily involved in the design and licensing of facilities and
transportation containers required to develop a commercial
supply of HA-LEU. To the extent that the legislation results in
an overall increase or acceleration of such activities, the
bill could increase the NRC's costs, which are subject to
appropriation. However, because the NRC is required under
current law to offset most of its funding through fees charged
to entities it regulates, CBO estimates that any net changes in
the agency's spending under the bill would not exceed $500,000
in any year.
Uncertainty: CBO aims to produce cost estimates that
generally reflect the middle of a range of the most likely
budgetary outcomes that would result if the legislation was
enacted. In estimating the effects of H.R. 6140, CBO had to
account for several sources of uncertainty:
CBO does not know the quantity or price of
the HA-LEU that DOE would acquire to implement the
bill. Spending could be higher or lower than the
estimated amounts depending on the size of the
commercial market for HA-LEU, DOE's role in meeting the
needs of that market, and the cost of supplying those
materials.
CBO cannot determine the form or terms of
the contractual arrangements that DOE would use to
acquire materials under the bill. Costs also could
differ if DOE chose to purchase materials from Russia
or another foreign entity.
CBO cannot predict the amount or timing of
collections from fees paid by private entities for the
use of the fuel. Advanced nuclear reactor projects face
technological and market risks, which could affect the
timing and amount of their purchases or payments.
Pay-As-You-Go considerations: The Statutory Pay-As-You-Go
Act of 2010 establishes budget-reporting and enforcement
procedures for legislation affecting direct spending or
revenues. The net changes in outlays that are subject to those
pay-as-you-go procedures are shown in the following table.
CBO ESTIMATE OF PAY-AS-YOU-GO EFFECTS FOR H.R. 6140, THE ADVANCED NUCLEAR FUEL AVAILABILITY ACT, AS ORDERED REPORTED BY THE HOUSE COMMITTEE ON ENERGY
AND COMMERCE ON JULY 12, 2018
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By fiscal year, in millions of dollars--
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2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2019-2023 2019-2028
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NET INCREASE IN THE DEFICIT
Statutory Pay-As-You-Go Effect........................... 0 0 8 15 45 45 37 -4 -13 -13 68 120
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Increase in long-term direct spending and deficits: CBO
estimates that enacting H.R. 6140 would not increase net direct
spending or on-budget deficits by more than $5 billion in any
of the four consecutive 10-year periods beginning in 2029.
Mandates: H.R. 6140 contains no intergovernmental or
private-sector mandates as defined in UMRA.
Estimate prepared by: Federal costs: Megan Carroll and
Kathleen Gramp; Mandates: Jon Sperl.
Estimate reviewed by: Kim P. Cawley, Chief, Natural and
Physical Resources Cost Estimates Unit; H. Samuel Papenfuss,
Deputy Assistant Director for Budget Analysis.
FEDERAL MANDATES 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.
STATEMENT OF GENERAL PERFORMANCE GOALS AND OBJECTIVES
Pursuant to clause 3(c)(4) of rule XIII, the general
performance goal or objective of this legislation is to make
high-assay low-enriched uranium nuclear fuel available for
commercial use in advanced nuclear reactor technologies.
DUPLICATION OF FEDERAL PROGRAMS
Pursuant to clause 3(c)(5) of rule XIII, no provision of
H.R. 6140 is 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 the
most recent Catalog of Federal Domestic Assistance.
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.
EARMARK, LIMITED TAX BENEFITS, AND LIMITED TARIFF BENEFITS
Pursuant to clause 9(e), 9(f), and 9(g) of rule XXI, the
Committee finds that H.R. 6140 contains no earmarks, limited
tax benefits, or limited tariff benefits.
DISCLOSURE OF DIRECTED RULE MAKINGS
Pursuant to section 3(i) of H. Res. 5, the Committee finds
that H.R. 6140 contains no directed rule makings.
ADVISORY COMMITTEE STATEMENT
No advisory committees within the meaning of section 5(b)
of the Federal Advisory Committee Act were created by this
legislation.
APPLICABILITY TO LEGISLATIVE BRANCH
The Committee finds that the legislation 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.
SECTION-BY-SECTION ANALYSIS OF THE LEGISLATION
Section 1. Short title
This section provides the short title of ``Advanced Nuclear
Fuel Availability Act.''
Section 2. Program
This section requires the Secretary of Energy to establish
and carry out, through the Office of Nuclear Energy, a program
to support the availability of high-assay low-enriched uranium,
or HA-LEU, for domestic commercial use, and establishes several
HA-LEU program elements
Section 2(b) establishes the HA-LEU program elements which
(1) provide financial assistance to design and license
transportation packages for HA-LEU; (2) have such designs
submitted to the NRC for certification by January 1, 2021 and
encourage the Commission to have such designs certified by
January 1, 2023; (3) report on DOE's uranium inventory that may
be processed to HA-LEU not later than January 1, 2020; (4)
conduct a periodic survey to estimate quantities necessary for
domestic commercial use of HA-LEU; (5) assess options to
acquire HA-LEU, including cost and time required for each
option assessed; (6) establish a consortium, which may include
representatives of companies involved in any stage of the
nuclear fuel cycle, to partner with DOE to support the
availability of HA-LEU for domestic commercial use, including
by providing information for the surveys and purchasing HA-LEU
made available by the Secretary; (7) develop a cost recovery
schedule for HA-LEU made available to members of the
consortium; (8) make HA-LEU available to members of the
consortium beginning not later than January 1, 2025, consistent
with quantities estimated under the surveys; and, (9) develop
criticality benchmark data to assist the Commission in
licensing and regulation of nuclear facilities and
certification of transportation packages.
Section 2(c) makes subparagraphs (A) and (C) of section
3112(d)(2) of the USEC Privatization Act applicable to
transfers of HA-LEU for commercial use.
Section 2(d) requires financial assistance agreements under
section 2(b)(1) for the design and licensing of transportation
packages to have a minimum of a twenty percent cost share and
authorizes $1,500,000 for each of the fiscal years 2019 through
2021.
Section 2(e) sunsets the program on September 30, 2033.
Section 3. Report to Congress
Section 3 requires the NRC to submit a report to Congress
not later than 12 months from the date of enactment of the Act
that identifies updates to regulations, certifications, and
other regulatory policies that the Commission determines are
necessary in order for HA-LEU to be commercially available,
including guidance for material control and accountability of
Category 2 special nuclear material, certifications relating to
transportation packaging, and licensing of enrichment,
conversion, and fuel fabrication facilities for HA-LEU and
associated physical security plans for such facilities, with a
description of such updates and timeline to complete such
updates.
Section 4. Definitions
Section 4 defines the terms ``Commission''; ``Department'';
``HA-LEU''; ``high-assay low-enriched uranium''; and
``Secretary.''
CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED
This legislation does not amend any existing Federal
statute.