Nuclear Energy Innovation Capabilities Act

SECTION 1. SHORT TITLE.

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

SEC. 2. NUCLEAR ENERGY.

    Section 951 of the Energy Policy Act of 2005 (42 U.S.C. 16271) is 
amended to read as follows:

``SEC. 951. NUCLEAR ENERGY.

    ``(a) Mission.--The Secretary shall conduct programs of civilian 
nuclear research, development, demonstration, and commercial 
application, including activities in this subtitle. Such programs shall 
take into consideration the following objectives:
            ``(1) Providing research infrastructure to promote 
        scientific progress and 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 National Laboratory and university 
        nuclear energy research and development programs, including 
        their infrastructure.
            ``(3) Providing the technical means to reduce the 
        likelihood of nuclear weapons proliferation and increasing 
        confidence margins for public safety of nuclear energy systems.
            ``(4) Reducing the environmental impact of nuclear energy 
        related activities.
            ``(5) Supporting technology transfer from the National 
        Laboratories to the private sector.
            ``(6) 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 aforementioned objectives in this subsection.
    ``(b) Definitions.--In this subtitle:
            ``(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, which may include inherent safety features, lower 
        waste yields, greater fuel utilization, superior reliability, 
        resistance to proliferation, and increased thermal efficiency.
            ``(2) Fast neutron.--The term `fast neutron' means a 
        neutron with kinetic energy above 100 kiloelectron volts.
            ``(3) National laboratory.--The term `National Laboratory' 
        has the meaning given that term in paragraph (3) of section 2, 
        except that with respect to subparagraphs (G), (H), and (N) of 
        such paragraph, for purposes of this subtitle the term includes 
        only the civilian activities thereof.
            ``(4) Neutron flux.--The term `neutron flux' means the 
        intensity of neutron radiation measured as a rate of flow of 
        neutrons applied over an area.
            ``(5) Neutron source.--The term `neutron source' means a 
        research machine that provides neutron irradiation services for 
        research on materials sciences and nuclear physics as well as 
        testing of advanced materials, nuclear fuels, and other related 
        components for reactor systems.
    ``(c) Sense of Congress.--It is the sense of the Congress that 
nuclear energy, through fission or fusion, represents the highest 
energy density of any known attainable source and yields zero air 
emissions. This energy source is of national importance to scientific 
progress, national security, electricity generation, heat generation 
for industrial applications, and space exploration. Considering the 
inherent complexity and regulatory burden associated with this area of 
science, the Department should focus its civilian nuclear research and 
development activities towards programs that enable the private sector, 
National Laboratories, and universities to carry out such experiments 
as are necessary to promote scientific progress and enhance practical 
knowledge of nuclear engineering.''.

SEC. 3. NUCLEAR ENERGY RESEARCH PROGRAMS.

    Section 952 of the Energy Policy Act of 2005 (42 U.S.C. 16272) is 
amended--
            (1) by striking subsection (c); and
            (2) by redesignating subsections (d) and (e) as subsections 
        (c) and (d), respectively.

SEC. 4. ADVANCED FUEL CYCLE INITIATIVE.

    Section 953(a) of the Energy Policy Act of 2005 (42 U.S.C. 
16273(a)) is amended by striking ``, acting through the Director of the 
Office of Nuclear Energy, Science and Technology,''.

SEC. 5. UNIVERSITY NUCLEAR SCIENCE AND ENGINEERING SUPPORT.

    Section 954(d)(4) of the Energy Policy Act of 2005 (42 U.S.C. 
16274(d)(4)) is amended by striking ``as part of a taking into 
consideration effort that emphasizes'' and inserting ``that 
emphasize''.

SEC. 6. DEPARTMENT OF ENERGY CIVILIAN NUCLEAR INFRASTRUCTURE AND 
              FACILITIES.

    Section 955 of the Energy Policy Act of 2005 (42 U.S.C. 16275) is 
amended--
            (1) by striking subsections (c) and (d); and
            (2) by adding at the end the following:
    ``(c) Versatile Neutron Source.--
            ``(1) Mission need.--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. During this process, the Secretary 
        shall consult with the private sector, universities, National 
        Laboratories, and relevant Federal agencies to ensure that this 
        user facility will meet the research needs of the largest 
        possible majority of prospective users.
            ``(2) Establishment.--Upon the determination of mission 
        need made under paragraph (1), the Secretary shall, as 
        expeditiously as possible, provide to the Committee on Science, 
        Space, and Technology of the House of Representatives and the 
        Committee on Energy and Natural Resources of the Senate a 
        detailed plan for the establishment of the user facility.
            ``(3) Facility requirements.--
                    ``(A) Capabilities.--The Secretary shall ensure 
                that this user facility will provide, at a minimum, the 
                following capabilities:
                            ``(i) Fast neutron spectrum irradiation 
                        capability.
                            ``(ii) Capacity for upgrades to accommodate 
                        new or expanded research needs.
                    ``(B) Considerations.--In carrying out the plan 
                provided under paragraph (2), the Secretary shall 
                consider the following:
                            ``(i) Capabilities that support 
                        experimental high-temperature testing.
                            ``(ii) Providing a source of fast neutrons 
                        at a neutron flux, higher than that at which 
                        current research facilities operate, sufficient 
                        to enable research for an optimal base of 
                        prospective users.
                            ``(iii) Maximizing irradiation flexibility 
                        and irradiation volume to accommodate as many 
                        concurrent users as possible.
                            ``(iv) Capabilities for irradiation with 
                        neutrons of a lower energy spectrum.
                            ``(v) Multiple loops for fuels and 
                        materials testing in different coolants.
                            ``(vi) Additional pre-irradiation and post-
                        irradiation examination capabilities.
                            ``(vii) Lifetime operating costs and 
                        lifecycle costs.
            ``(4) Reporting progress.--The Department shall, in its 
        annual budget requests, provide an explanation for any delay in 
        its progress and otherwise make every effort to complete 
        construction and approve the start of operations for this 
        facility by December 31, 2025.
            ``(5) Coordination.--The Secretary shall leverage the best 
        practices for management, construction, and operation of 
        national user facilities from the Office of Science.''.

SEC. 7. SECURITY OF NUCLEAR FACILITIES.

    Section 956 of the Energy Policy Act of 2005 (42 U.S.C. 16276) is 
amended by striking ``, acting through the Director of the Office of 
Nuclear Energy, Science and Technology,''.

SEC. 8. HIGH-PERFORMANCE COMPUTATION AND SUPPORTIVE RESEARCH.

    Section 957 of the Energy Policy Act of 2005 (42 U.S.C. 16277) is 
amended to read as follows:

``SEC. 957. HIGH-PERFORMANCE COMPUTATION AND SUPPORTIVE RESEARCH.

    ``(a) Modeling and Simulation.--The Secretary shall carry out a 
program to enhance the Nation's capabilities to develop new reactor 
technologies through high-performance computation modeling and 
simulation techniques. This program shall coordinate with relevant 
Federal agencies through the National Strategic Computing Initiative 
created under Executive Order No. 13702 (July 29, 2015) while taking 
into account the following objectives:
            ``(1) Utilizing expertise from the private sector, 
        universities, 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.
            ``(2) Developing computational tools to simulate and 
        predict nuclear phenomena that may be validated through 
        physical experimentation.
            ``(3) Increasing the utility of the Department's research 
        infrastructure by coordinating with the Advanced Scientific 
        Computing Research program within the Office of Science.
            ``(4) Leveraging experience from the Energy Innovation Hub 
        for Modeling and Simulation.
            ``(5) Ensuring that new experimental and computational 
        tools are accessible to relevant research communities.
    ``(b) Supportive Research Activities.--The Secretary shall consider 
support for additional research activities to maximize the utility of 
its research facilities, including physical processes to simulate 
degradation of materials and behavior of fuel forms and for validation 
of computational tools.''.

SEC. 9. ENABLING NUCLEAR ENERGY INNOVATION.

    Subtitle E of title IX of the Energy Policy Act of 2005 (42 U.S.C. 
16271 et seq.) is amended by adding at the end the following:

``SEC. 958. ENABLING NUCLEAR ENERGY INNOVATION.

    ``(a) National Reactor Innovation Center.--The Secretary shall 
carry out a program to enable the testing and demonstration of reactor 
concepts to be proposed and funded by the private sector. The Secretary 
shall leverage the technical expertise of relevant Federal agencies and 
National Laboratories in order to minimize the time required to enable 
construction and operation of privately funded experimental reactors at 
National Laboratories or other Department-owned sites while ensuring 
reasonable safety for persons working within these sites. Such reactors 
shall operate to meet the following objectives:
            ``(1) Enabling physical validation of novel reactor 
        concepts.
            ``(2) Resolving technical uncertainty and increasing 
        practical knowledge relevant to safety, resilience, security, 
        and functionality of first-of-a-kind reactor concepts.
            ``(3) General research and development to improve nascent 
        technologies.
    ``(b) Reporting Requirement.--Not later than 180 days after the 
date of enactment of the Nuclear Energy Innovation Capabilities Act, 
the Secretary, in consultation with the National Laboratories, relevant 
Federal agencies, and other stakeholders, shall transmit to the 
Committee on Science, Space, and Technology of the House of 
Representatives and the Committee on Energy and Natural Resources of 
the Senate a report assessing the Department's capabilities to 
authorize, host, and oversee privately funded fusion and advanced 
fission experimental reactors as described under subsection (a). The 
report shall address the following:
            ``(1) The Department's safety review and oversight 
        capabilities, including options to leverage expertise from the 
        Nuclear Regulatory Commission and National Laboratories.
            ``(2) Potential sites capable of hosting activities 
        described under subsection (a).
            ``(3) The efficacy of the Department's available 
        contractual mechanisms to partner with the private sector and 
        Federal agencies, including cooperative research and 
        development agreements, strategic partnership projects, and 
        agreements for commercializing technology.
            ``(4) Potential cost structures related to physical 
        security, decommissioning, liability, and other long-term 
        project costs.
            ``(5) Other challenges or considerations identified by the 
        Secretary.''.

SEC. 10. BUDGET PLAN.

    (a) In General.--Subtitle E of title IX of the Energy Policy Act of 
2005 (42 U.S.C. 16271 et seq.) is further amended by adding at the end 
the following:

``SEC. 959. BUDGET PLAN.

    ``Not later than 12 months after the date of enactment of the 
Nuclear Energy Innovation Capabilities Act, the Department shall 
transmit to the Committee on Science, Space, and Technology of the 
House of Representatives and the Committee on Energy and Natural 
Resources of the Senate 2 alternative 10-year budget plans for civilian 
nuclear energy research and development by the Department. The first 
shall assume constant annual funding for 10 years at the appropriated 
level for the Department's civilian nuclear energy research and 
development for fiscal year 2016. The second shall be an unconstrained 
budget. The two plans shall include--
            ``(1) a prioritized list of the Department's programs, 
        projects, and activities to best support the development of 
        next generation nuclear energy technology;
            ``(2) realistic budget requirements for the Department to 
        implement sections 955(c), 957, and 958 of this Act; and
            ``(3) the Department's justification for continuing or 
        terminating existing civilian nuclear energy research and 
        development programs.''.
    (b) Report on Fusion Innovation.--Not later than 6 months after the 
date of enactment of this Act, the Secretary of the Department of 
Energy shall transmit to the Committee on Science, Space, and 
Technology of the House of Representatives and the Committee on Energy 
and Natural Resources of the Senate a report that will identify 
engineering designs for innovative fusion energy systems that have the 
potential to demonstrate net energy production not later than 15 years 
after the start of construction. In this report, the Secretary will 
identify budgetary requirements that would be necessary for the 
Department to carry out a fusion innovation initiative to accelerate 
research and development of these designs.

SEC. 11. CONFORMING AMENDMENTS.

    The table of contents for the Energy Policy Act of 2005 is amended 
by striking the item relating to section 957 and inserting the 
following:

``957. High-performance computation and supportive research.
``958. Enabling nuclear energy innovation.
``959. Budget plan.''.

            Passed the House of Representatives February 29, 2016.

            Attest:

                                                 KAREN L. HAAS,

                                                                 Clerk.

Summary: Nuclear Energy Innovation Capabilities Act This bill amends the Energy Policy Act of 2005 to revise the objectives of the civilian nuclear energy research, development, demonstration, and commercial application programs of the Department of Energy (DOE) to emphasize: providing research infrastructure to promote scientific progress and enable users from academia, the National Laboratories, and the private sector to make scientific discoveries relevant for nuclear, chemical, and materials science engineering. And 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 aforementioned objectives. The bill expresses the sense of Congress regarding nuclear energy, urging DOE to focus its civilian nuclear research and development activities towards programs that enable the private sector, National Laboratories, and universities to carry out experiments necessary to promote scientific progress and enhance practical knowledge of nuclear engineering. The bill repeals the Nuclear Power 2010 Program, and makes technical corrections removing the Office of Nuclear Energy, Science and Technology as the designated entity to conduct the research, development, and demonstration programs on advanced fuel recycling technology and cost-effective technologies for increasing the safety and security of nuclear facilities. The bill repeals requirements for development of a comprehensive plan for the operation and maintenance of its facilities at the Idaho National Laboratory to support civilian nuclear energy research, development, demonstration, and commercial application programs, including radiological facilities management, isotope production, and facilities management. By December 31, 2016, DOE shall instead determine the mission need for a versatile reactor-based fast neutron source, which shall operate as a national user facility and, if such a need is determined, give Congress a plan to establish the facility. DOE shall ensure that the user facility will provide at a minimum: fast neutron spectrum irradiation capability, and capacity for upgrades to accommodate new or expanded research needs. The DOE shall leverage from the Office of Science the best practices for management, construction, and operation of national user facilities. The bill repeals the requirement that by August 1, 2006, DOE submit to Congress the results of a survey of alternatives to industrial applications of large radioactive sources. DOE shall instead carry out a program to enhance the nation's capabilities to develop new reactor technologies through high-performance computing modeling and simulation techniques. Such program shall coordinate with relevant federal agencies through the National Strategic Computing Initiative while taking into account specified objectives. DOE shall also carry out a program to enable the testing and demonstration of reactor concepts to be proposed and funded by the private sector. DOE shall leverage the technical expertise of relevant federal agencies and national laboratories in order to minimize the time required to enable construction and operation of privately funded experimental reactors at national laboratories or other DOE-owned sites while ensuring safety for persons working within those sites. Such reactors shall operate to enable physical validation of novel reactor concepts and generate research and development to improve nascent technologies. DOE shall assess its capabilities to authorize, host, and oversee privately funded fusion and advanced fission experimental reactors. Within 12 months of this bill's enactment, DOE must submit to Congress two alternative 10-year budget plans for civilian nuclear energy research and development by the DOE, one assuming constant annual funding for 10 years at the appropriated FY2016 level, and the other an unconstrained budget. DOE must also identify to Congress: engineering designs for innovative fusion energy systems with the potential to demonstrate net energy production within 15 years of the start of construction, and budgetary requirements necessary for DOE to carry out a fusion innovation initiative to accelerate research and development of those designs.