SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Nuclear Energy Innovation 
Capabilities Act''.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Advanced fission reactor.--The term ``advanced fission 
        reactor'' means a nuclear fission reactor with significant 
        improvements over the most recent generation of nuclear 
        reactors, including improvements such as--
                    (A) inherent safety features;
                    (B) lower waste yields;
                    (C) greater fuel utilization;
                    (D) superior reliability;
                    (E) resistance to proliferation;
                    (F) increased thermal efficiency; and
                    (G) ability to integrate into electric and 
                nonelectric applications.
            (2) Department.--The term ``Department'' means the 
        Department of Energy.
            (3) Fast neutron.--The term ``fast neutron'' means a 
        neutron with kinetic energy above 100 kiloelectron volts.
            (4) National laboratory.--
                    (A) In general.--Except as provided in subparagraph 
                (B), 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).
                    (B) Limitation.--With respect to the Lawrence 
                Livermore National Laboratory, the Los Alamos National 
                Laboratory, and the Sandia National Laboratories, the 
                term ``National Laboratory'' means only the civilian 
                activities of the laboratory.
            (5) Neutron flux.--The term ``neutron flux'' means the 
        intensity of neutron radiation measured as a rate of flow of 
        neutrons applied over an area.
            (6) Neutron source.--The term ``neutron source'' means a 
        research machine that provides neutron irradiation services 
        for--
                    (A) research on materials sciences and nuclear 
                physics; and
                    (B) testing of advanced materials, nuclear fuels, 
                and other related components for reactor systems.
            (7) Secretary.--The term ``Secretary'' means the Secretary 
        of Energy.

SEC. 3. MISSION.

    Section 951 of the Energy Policy Act of 2005 (42 U.S.C. 16271) is 
amended by striking subsection (a) and inserting the following:
    ``(a) In General.--The Secretary shall conduct programs of civilian 
nuclear research, development, demonstration, and commercial 
application, including activities described in this subtitle, that take 
into consideration the following objectives:
            ``(1) Providing research infrastructure--
                    ``(A) to promote scientific progress; and
                    ``(B) to enable users from academia, the National 
                Laboratories, and the private sector to make scientific 
                discoveries relevant for nuclear, chemical, and 
                materials science engineering.
            ``(2) Maintaining nuclear energy research and development 
        programs at the National Laboratories and institutions of 
        higher education, including programs of infrastructure of 
        National Laboratories and institutions of higher education.
            ``(3) Providing the technical means to reduce the 
        likelihood of nuclear weapons proliferation.
            ``(4) Ensuring public safety.
            ``(5) Reducing the environmental impact of nuclear energy-
        related activities.
            ``(6) Supporting technology transfer from the National 
        Laboratories to the private sector.
            ``(7) Enabling the private sector to partner with the 
        National Laboratories to demonstrate novel reactor concepts for 
        the purpose of resolving technical uncertainty associated with 
        the objectives described in this subsection.''.

SEC. 4. SENSE OF CONGRESS.

    It is the sense of Congress that--
            (1) nuclear energy, through fission or fusion, represents 
        the highest energy density of any known attainable source and 
        yields low air emissions;
            (2) nuclear energy is of national importance to scientific 
        progress, national security, electricity generation, heat 
        generation for industrial applications, and space exploration; 
        and
            (3) considering the inherent complexity and regulatory 
        burden associated with nuclear energy, the Department should 
        focus civilian nuclear research and development activities of 
        the Department on programs that enable the private sector, 
        National Laboratories, and institutions of higher education to 
        carry out experiments to promote scientific progress and 
        enhance practical knowledge of nuclear engineering.

SEC. 5. HIGH-PERFORMANCE COMPUTATION AND SUPPORTIVE RESEARCH.

    (a) Modeling and Simulation Program.--
            (1) In general.--The Secretary shall carry out a program to 
        enhance the capabilities of the United States to develop new 
        reactor technologies and related systems technologies through 
        high-performance computation modeling and simulation techniques 
        (referred to in this subsection as the ``program'').
            (2) Coordination required.--In carrying out the program, 
        the Secretary shall coordinate with relevant Federal agencies 
        through the National Strategic Computing Initiative established 
        by Executive Order 13702 (80 Fed. Reg. 46177) (July 29, 2015).
            (3) Objectives.--In carrying out the program, the Secretary 
        shall take into consideration the following objectives:
                    (A) Using expertise from the private sector, 
                institutions of higher education, and National 
                Laboratories to develop computational software and 
                capabilities that prospective users may access to 
                accelerate research and development of advanced fission 
                reactor systems, nuclear fusion systems, and reactor 
                systems for space exploration.
                    (B) Developing computational tools to simulate and 
                predict nuclear phenomena that may be validated through 
                physical experimentation.
                    (C) Increasing the utility of the research 
                infrastructure of the Department by coordinating with 
                the Advanced Scientific Computing Research program of 
                the Office of Science.
                    (D) Leveraging experience from the Energy 
                Innovation Hub for Modeling and Simulation.
                    (E) Ensuring that new experimental and 
                computational tools are accessible to relevant research 
                communities, including private companies engaged in 
                nuclear energy technology development.
    (b) Supportive Research Activities.--The Secretary shall consider 
support for additional research activities to maximize the utility of 
the research facilities of the Department, including research--
            (1) on physical processes to simulate degradation of 
        materials and behavior of fuel forms; and
            (2) for validation of computational tools.

SEC. 6. VERSATILE NEUTRON SOURCE.

    (a) Determination of Mission Need.--
            (1) In general.--Not later than December 31, 2016, the 
        Secretary shall determine the mission need for a versatile 
        reactor-based fast neutron source, which shall operate as a 
        national user facility (referred to in this section as the 
        ``user facility'').
            (2) Consultation required.--In carrying out paragraph (1), 
        the Secretary shall consult with the private sector, 
        institutions of higher education, the National Laboratories, 
        and relevant Federal agencies to ensure that the user facility 
        will meet the research needs of the largest possible majority 
        of prospective users.
    (b) Plan for Establishment.--On the determination of the mission 
need under subsection (a), the Secretary, as expeditiously as 
practicable, shall submit to the Committee on Energy and Natural 
Resources of the Senate and the Committee on Science, Space, and 
Technology of the House of Representatives a detailed plan for the 
establishment of the user facility (referred to in this section as the 
``plan'').
    (c) Deadline for Establishment.--The Secretary shall make every 
effort to complete construction of, and approve the start of operations 
for, the user facility by December 31, 2025.
    (d) Facility Requirements.--
            (1) Capabilities.--The Secretary shall ensure that the user 
        facility shall provide, at a minimum--
                    (A) fast neutron spectrum irradiation capability; 
                and
                    (B) capacity for upgrades to accommodate new or 
                expanded research needs.
            (2) Considerations.--In carrying out the plan, the 
        Secretary shall consider--
                    (A) capabilities that support experimental high-
                temperature testing;
                    (B) providing a source of fast neutrons--
                            (i) at a neutron flux that is higher than 
                        the neutron flux at which research facilities 
                        operate before establishment of the user 
                        facility; and
                            (ii) sufficient to enable research for an 
                        optimal base of prospective users;
                    (C) maximizing irradiation flexibility and 
                irradiation volume to accommodate as many concurrent 
                users as possible;
                    (D) capabilities for irradiation with neutrons of a 
                lower energy spectrum;
                    (E) multiple loops for fuels and materials testing 
                in different coolants; and
                    (F) additional pre-irradiation and post-irradiation 
                examination capabilities.
    (e) Coordination.--In carrying out this section, the Secretary 
shall leverage the best practices of the Office of Science for the 
management, construction, and operation of national user facilities.
    (f) Report.--The Secretary shall include in the annual budget 
request of the Department an explanation for any delay in carrying out 
this section.

SEC. 7. ENABLING NUCLEAR ENERGY INNOVATION.

    (a) Establishment of National Nuclear Innovation Center.--The 
Secretary may enter into a memorandum of understanding with the 
Chairman of the Nuclear Regulatory Commission to establish a center to 
be known as the ``National Nuclear Innovation Center'' (referred to in 
this section as the ``Center'')--
            (1) to enable the testing and demonstration of reactor 
        concepts to be proposed and funded, in whole or in part, by the 
        private sector;
            (2) to establish and operate a database to store and share 
        data and knowledge on nuclear science between Federal agencies 
        and private industry; and
            (3) to establish capabilities to develop and test reactor 
        electric and nonelectric integration and energy conversion 
        systems.
    (b) Role of NRC.--In operating the Center, the Secretary shall--
            (1) consult with the Nuclear Regulatory Commission on 
        safety issues; and
            (2) permit staff of the Nuclear Regulatory Commission to 
        actively observe and learn about the technology being developed 
        at the Center.
    (c) Objectives.--A reactor developed under subsection (a)(1) shall 
have the following objectives:
            (1) Enabling physical validation of fusion and advanced 
        fission experimental reactors at the National Laboratories or 
        other facilities of the Department.
            (2) Resolving technical uncertainty and increase practical 
        knowledge relevant to safety, resilience, security, and 
        functionality of novel reactor concepts.
            (3) Conducting general research and development to improve 
        novel reactor technologies.
    (d) Use of Technical Expertise.--In operating the Center, the 
Secretary shall leverage the technical expertise of relevant Federal 
agencies and National Laboratories--
            (1) to minimize the time required to carry out subsection 
        (c); and
            (2) to ensure reasonable safety for individuals working at 
        the National Laboratories or other facilities of the Department 
        to carry out that subsection.
    (e) Reporting Requirement.--
            (1) In general.--Not later than 180 days after the date of 
        enactment of this Act, the Secretary, in consultation with the 
        National Laboratories, relevant Federal agencies, and other 
        stakeholders, shall submit to the Committee on Energy and 
        Natural Resources and the Committee on Environment and Public 
        Works of the Senate and the Committee on Science, Space, and 
        Technology and the Committee on Energy and Commerce of the 
        House of Representatives a report assessing the capabilities of 
        the Department to authorize, host, and oversee privately 
        proposed and funded reactors (as described in subsection 
        (a)(1)).
            (2) Contents.--The report shall address--
                    (A) the safety review and oversight capabilities of 
                the Department, including options to leverage expertise 
                from the Nuclear Regulatory Commission and the National 
                Laboratories;
                    (B) potential sites capable of hosting the 
                activities described in subsection (a);
                    (C) the efficacy of the available contractual 
                mechanisms of the Department to partner with the 
                private sector and other Federal agencies, including 
                cooperative research and development agreements, 
                strategic partnership projects, and agreements for 
                commercializing technology;
                    (D) how the Federal Government and the private 
                sector will address potential intellectual property 
                concerns;
                    (E) potential cost structures relating to physical 
                security, decommissioning, liability, and other long-
                term project costs; and
                    (F) other challenges or considerations identified 
                by the Secretary.

SEC. 8. BUDGET PLAN.

    (a) In General.--Not later than 1 year after the date of enactment 
of this Act, the Secretary shall submit to the Committee on Energy and 
Natural Resources of the Senate and the Committee on Science, Space, 
and Technology of the House of Representatives 3 alternative 10-year 
budget plans for civilian nuclear energy research and development by 
the Department in accordance with subsection (b).
    (b) Description of Plans.--
            (1) In general.--The 3 alternative 10-year budget plans 
        submitted under subsection (a) shall be the following:
                    (A) A plan that assumes constant annual funding at 
                the level of appropriations for fiscal year 2016 for 
                the civilian nuclear energy research and development of 
                the Department, particularly for programs critical to 
                advanced nuclear projects and development.
                    (B) A plan that assumes 2 percent annual increases 
                to the level of appropriations described in 
                subparagraph (A).
                    (C) A plan that uses an unconstrained budget.
            (2) Inclusions.--Each plan shall include--
                    (A) a prioritized list of the programs, projects, 
                and activities of the Department that best support the 
                development, licensing, and deployment of advanced 
                nuclear energy technologies;
                    (B) realistic budget requirements for the 
                Department to carry out sections 5, 6, and 7; and
                    (C) the justification of the Department for 
                continuing or terminating existing civilian nuclear 
                energy research and development programs.

SEC. 9. NUCLEAR REGULATORY COMMISSION REPORT.

    Not later than December 31, 2016, the Chairman of the Nuclear 
Regulatory Commission shall submit to the Committee on Energy and 
Natural Resources and the Committee on Environment and Public Works of 
the Senate and the Committee on Science, Space, and Technology and the 
Committee on Energy and Commerce of the House of Representatives a 
report describing--
            (1) the extent to which the Nuclear Regulatory Commission 
        is capable of licensing advanced reactor designs that are 
        developed pursuant to this Act by the end of the 4-year period 
        beginning on the date on which an application is received under 
        part 50 or 52 of title 10, Code of Federal Regulations (or 
        successor regulations); and
            (2) any organizational or institutional barriers the 
        Nuclear Regulatory Commission will need to overcome to be able 
        to license the advanced reactor designs that are developed 
        pursuant to this Act by the end of the 4-year period described 
        in paragraph (1).
Nuclear Energy Innovation Capabilities Act This bill amends the Energy Policy Act of 2005 to revise the objectives for the civilian nuclear energy research and development programs of the Department of Energy (DOE).  DOE shall carry out a specified program to enhance U.S. capabilities to develop new reactor technologies and related systems technologies through high-performance computation modeling and simulation techniques.  DOE shall: (1) determine the mission need for a versatile reactor-based fast neutron source, which shall operate as a national user facility; and (2) submit a plan to Congress for establishment of such a facility.  DOE may enter into a memorandum of understanding with the Nuclear Regulatory Commission (NRC) to establish a National Nuclear Innovation Center that:   enables the testing and demonstration of reactor concepts to be proposed and funded by the private sector, establishes and operates a database to store and share data and knowledge on nuclear science between federal agencies and private industry, and  establishes capabilities to develop and test reactor electric and nonelectric integration and energy conversion systems.   DOE shall submit to Congress three alternative 10-year budget plans for civilian nuclear energy research and development.  The NRC shall report to Congress on:   the extent to which it is capable of licensing advanced reactor designs developed under this bill by the end of a specified four-year period, and  any organizational or institutional barriers it will need to overcome to be able to license such designs.  
Nuclear Energy Innovation Capabilities Act