Nuclear Decommissioning Assurance Act of 1999

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Nuclear Decommissioning Assurance 
Act of 1999''.

SEC. 2. FINDINGS AND PURPOSES.

    (a) Findings.--Congress finds that--
            (1) full, safe decommissioning of nuclear power plants is a 
        compelling Federal interest, in that--
                    (A) the public health and safety and the protection 
                of the environment can be guaranteed only if nuclear 
                power plants are adequately decommissioned at the end 
                of their useful lives; and
                    (B) decommissioning obligations cannot be avoided, 
                abandoned, or mitigated, as a matter of public health 
                and safety;
            (2) electric utilities that own nuclear power plants must 
        be able to collect adequate revenues to ensure that the 
        utilities can satisfy the obligation to fully decommission 
        nuclear power plants in accordance with standards established 
        by the Nuclear Regulatory Commission;
            (3) the authority of the Nuclear Regulatory Commission to 
        ensure that utilities are able to collect adequate funds so 
        that they can satisfy the decommissioning obligation is limited 
        by the fact that the Commission does not directly establish 
        rates for electric services;
            (4) many nuclear decommissioning trust funds are not 
        adequate to meet decommissioning obligations, and the current 
        electric rates of collection are not adequate to ensure that 
        there will be adequate funds at the time of decommissioning.
            (5) potential restructuring of the electric utility 
        industry will exacerbate the problem, because competitive 
        pressure is expected to be placed on current rates, thereby 
        threatening the ability of utility entities to recover funds 
        for decommissioning in electric rates; and
            (6) there is a Federal interest in establishing a national 
        policy to ensure that electric utilities that own nuclear power 
        plants can recover funds sufficient to satisfy the 
        decommissioning obligation.
    (b) Purposes.--The purposes of this Act are--
            (1) to ensure that electric utilities that own commercial 
        nuclear electric generating plants will be able to satisfy the 
        obligation to decommission the plants, as established by the 
        Nuclear Regulatory Commission; and
            (2) to provide ratemaking bodies, including the Federal 
        Energy Regulatory Commission, with sufficient authority to 
        provide for recovery of funds for decommissioning.

SEC. 3. DEFINITIONS.

    In this Act:
            (1) Decommission.--The term ``decommission'' has the 
        meaning given the term in section 50.2 of title 10, Code of 
        Federal Regulations (or any successor regulation).
            (2) Decommissioning obligation.--The term ``decommissioning 
        obligation'' means the obligation to pay costs associated with 
        the measures necessary to ensure the continued protection of 
        the public from the dangers of any residual radioactivity or 
        other hazards present at a facility when a nuclear unit is 
        decommissioned.
            (3) Nuclear decommissioning trust fund.--The term ``nuclear 
        decommissioning trust fund'' has the meaning given the term 
        ``external sinking fund'' in section 50.75(e)(1)(ii) of title 
        10, Code of Federal Regulations (or any successor regulation).
            (4) State commission.--The term ``State commission'' has 
        the meaning given the term in section 3 of the Federal Power 
        Act (16 U.S.C. 796).

SEC. 4. NUCLEAR DECOMMISSIONING ASSURANCE DETERMINATION BY THE NUCLEAR 
              REGULATORY COMMISSION.

    (a) Petition.--
            (1) In general.--A licensee under part 50 of title 10, Code 
        of Federal Regulations may petition the Nuclear Regulatory 
        Commission for a determination of whether--
                    (A) adequate amounts have been deposited or are 
                being deposited in the nuclear decommissioning trust 
                fund of the licensee; and
                    (B) the future funding for any nuclear power plant 
                owned in whole or in part by the licensee is assured.
            (2) Contents.--A petition under paragraph (1) shall 
        disclose--
                    (A) the licensee's current minimum amount 
                established by the Nuclear Regulatory Commission under 
                section 50.75 of title 10, Code of Federal Regulations 
                for each facility for which the licensee holds a 
                license;
                    (B) the currently effective rates to recover costs 
                for decommissioning obligations as established by the 
                Commission or State commissions, as appropriate;
                    (C) the amount that has been deposited in the 
                nuclear decommissioning trust fund;
                    (D) the planned rate and timing of collection of 
                the costs of the decommissioning obligation through the 
                projected useful life of the facility; and
                    (E) any other information pertinent to the 
                continuing assurance of funding of the nuclear 
                decommissioning trust fund.
    (b) Determination.--Not later than 180 days of receipt of a 
petition under paragraph (1), the Nuclear Regulatory Commission shall 
issue a determination regarding whether the nuclear decommissioning 
trust fund and the currently approved level of rates to recover the 
costs of the decommissioning obligation are adequate to ensure full and 
safe decommissioning of the facility.
    (c) Considerations.--In making a determination under subsection 
(b), the Nuclear Regulatory Commission shall consider.--
            (1) the current level of funds in the nuclear 
        decommissioning trust fund;
            (2) the adequacy of the currently approved rates to recover 
        the costs of the decommissioning obligation;
            (3) the assurance of continuing recovery of such costs 
        through rates;
            (4) the timing of the recovery of such costs relative to 
        the projected useful life of the plant; and
            (5) any other information that the Nuclear Regulatory 
        Commission considers pertinent to a determination of the 
        necessary assurance of adequate funding.
    (d) Adequacy of Minimum Amounts.--Nothing in this Act precludes the 
Nuclear Regulatory Commission from revising or reconsidering the 
adequacy of the minimum amounts established under section 50.75(c) of 
title 10, Code of Federal Regulations.
    (e) Notice.--The Nuclear Regulatory Commission shall issue notice 
of its finding to the licensee, the Federal Energy Regulatory 
Commission, and any other party of record.

SEC. 5. AMENDMENT OF THE FEDERAL POWER ACT.

    (a) Declaration.--Section 201 of the Federal Power Act is amended 
by adding at the end the following:
    ``(h) Declaration Regarding Decommissioning.--The decommissioning 
of nuclear power plants licensed by the Commission is affected with a 
public interest, and the Federal regulation of matters relating to 
decommissioning of nuclear power plants, to the extent provided in this 
part, is necessary in the public interest.''.
    (b) Nuclear Decommissioning Assurance.--Part II of the Federal 
Power Act (16 U.S.C. 824 et seq.) is amended by adding at the end the 
following:

``SEC. 215. NUCLEAR DECOMMISSIONING ASSURANCE.

    ``(a) Cost Recovery in Wholesale Rates.--
            ``(1) In general.--To the extent that the costs of a 
        decommissioning obligation are recovered in wholesale rates, an 
        electric utility that owns a nuclear power facility in whole or 
        in part may apply to the Commission for an order approving 
        rates and charges in connection with the wholesale transmission 
        or sale of electricity to ensure collection of revenues 
        necessary to ensure that there will be adequate funding to 
        satisfy the decommissioning obligation of the electric utility 
        in establishing rates and charges.
            ``(2) Nuclear decommissioning assurance determination.--In 
        a proceeding under this section, any nuclear decommissioning 
        assurance determination made in a proceeding under section 4 of 
        the Nuclear Decommissioning Assurance Act of 1999 shall be 
        conclusive.
            ``(3) Denial of request.--If the Commission, by order or by 
        failure to act with 180 days of the filing of a petition, 
        denies in whole or in part an application under paragraph (1) 
        or otherwise fails to allow collection of costs in rates 
        necessary to ensure adequate funding under section 4 of the 
        Nuclear Decommissioning Assurance Act of 1999, the electric 
        utility may seek review of the action under section 313(b).
    ``(b) Cost Recovery in Retail Rates.--To the extent that the costs 
of the decommissioning obligation are recovered in retail rates, in a 
proceeding before a State commission initiated by an electric utility 
that owns a nuclear power plant in whole or in part for an order 
approving rates and charges in connection with the distribution of 
electricity, any nuclear decommissioning assurance determination made 
by the Commission under section 4 of the Nuclear Decommissioning 
Assurance Act of 1999 shall be given due consideration, so as to ensure 
collection of revenues necessary to ensure adequate funding of the 
nuclear-owning utility's nuclear decommissioning obligations.
    ``(c) Rates, Terms, and Conditions.--
            ``(1) In general.--The Commission and the State commissions 
        shall establish rates, terms, and conditions in response to an 
        application under subsection (a) or (b) not later than 180 days 
        after the date of submission of the application.
            ``(2) Failure to act.--For purposes of section 313(b), 
        failure of the Commission to comply with paragraph (1) shall be 
        considered a denial and shall be appealable as a final agency 
        action.
    ``(d) Denial of Request by State Commission.--Notwithstanding any 
other provision of law, if a State commission, by order or by failure 
to act within 180 days of the filing of a petition, denies in whole or 
in part the request under subsection (b) or otherwise fails to allow 
collection of costs in rates necessary to ensure adequate funding under 
section 4(b) of the Nuclear Decommissioning Assurance Act of 1999, the 
electric utility may apply to the United States district court for an 
order requiring the State commission to establish rates, terms, and 
conditions necessary to ensure adequate funding under section 4(b) of 
the Nuclear Decommissioning Assurance Act of 1999.''.

Summary: Sets a time frame by which the NRC must issue a determination whether the nuclear decommissioning trust fund and the currently approved decommissioning recovery cost rates are adequate to ensure full and safe facility decommissioning. Details mandatory NRC considerations. Amends the Federal Power Act to permit an electric utility that owns a nuclear power facility in whole or in part to petition the Federal Energy Regulatory Commission (FERC), for an order approving rates and charges in connection with wholesale transmission or sale of electricity to ensure collection of revenues necessary to ensure adequate funding to satisfy its decommissioning obligations. Provides that in such petition proceeding any nuclear decommissioning assurance determination made under this Act shall be conclusive. Permits a utility whose request has been denied to seek judicial review.