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[Senate Report 112-17]
[From the U.S. Government Publishing Office]

                                                        Calendar No. 53
112th Congress                                                   Report
                                 SENATE
 1st Session                                                     112-17

======================================================================

 
                AMERICAN MEDICAL ISOTOPES PRODUCTION ACT

                                _______
                                

                  May 18, 2011.--Ordered to be printed

                                _______
                                

   Mr. Bingaman, from the Committee on Energy and Natural Resources, 
                        submitted the following

                              R E P O R T

                          [To accompany S. 99]

    The Committee on Energy and Natural Resources, to which was 
referred the bill (S. 99) to promote the production of 
molybdenum-99 in the United States for medical isotope 
production, and to condition and phase out the export of highly 
enriched uranium for the production of medical isotopes, having 
considered the same, reports favorably thereon with an 
amendment and recommends that the bill, as amended, do pass.
    The amendment is as follows:
    Strike out all after the enacting clause and insert in lieu 
thereof the following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``American Medical Isotopes Production 
Act of 2011''.

SEC. 2. DEFINITIONS.

  In this Act:
          (1) Department.--The term ``Department'' means the Department 
        of Energy.
          (2) Highly enriched uranium.--The term ``highly enriched 
        uranium'' means uranium enriched to 20 percent or greater in 
        the isotope U-235.
          (3) Low enriched uranium.--The term ``low enriched uranium'' 
        means uranium enriched to less than 20 percent in the isotope 
        U-235.
          (4) Secretary.--The term ``Secretary'' means the Secretary of 
        Energy.

SEC. 3. IMPROVING THE RELIABILITY OF DOMESTIC MEDICAL ISOTOPE SUPPLY.

  (a) Medical Isotope Development Projects.--
          (1) In general.--The Secretary shall establish a technology-
        neutral program--
                  (A) to evaluate and support projects for the 
                production in the United States, without the use of 
                highly enriched uranium, of significant quantities of 
                molybdenum-99 for medical uses;
                  (B) to be carried out in cooperation with non-Federal 
                entities; and
                  (C) the costs of which shall be shared in accordance 
                with section 988 of the Energy Policy Act of 2005 (42 
                U.S.C. 16352).
          (2) Criteria.--Projects shall be judged against the following 
        primary criteria:
                  (A) The length of time necessary for the proposed 
                project to begin production of molybdenum-99 for 
                medical uses within the United States.
                  (B) The capability of the proposed project to produce 
                a significant percentage of United States demand for 
                molybdenum-99 for medical uses.
                  (C) The cost of the proposed project.
          (3) Exemption.--An existing reactor in the United States 
        fueled with highly enriched uranium shall not be disqualified 
        from the program if the Secretary determines that--
                  (A) there is no alternative nuclear reactor fuel, 
                enriched in the isotope U-235 to less than 20 percent, 
                that can be used in that reactor;
                  (B) the reactor operator has provided assurances 
                that, whenever an alternative nuclear reactor fuel, 
                enriched in the isotope U-235 to less than 20 percent, 
                can be used in that reactor, it will use that 
                alternative in lieu of highly enriched uranium; and
                  (C) the reactor operator has provided a current 
                report on the status of its efforts to convert the 
                reactor to an alternative nuclear reactor fuel enriched 
                in the isotope U-235 to less than 20 percent, and an 
                anticipated schedule for completion of conversion.
          (4) Public participation and review.--The Secretary shall--
                  (A) develop a program plan and annually update the 
                program plan through public workshops; and
                  (B) use the Nuclear Science Advisory Committee to 
                conduct annual reviews of the progress made in 
                achieving the program goals.
          (5) Authorization of appropriations.--There are authorized to 
        be appropriated to the Secretary for carrying out the program 
        under paragraph (1) $143,000,000 for the period encompassing 
        fiscal years 2011 through 2014.
  (b) Development Assistance.--The Secretary shall establish a program 
to provide assistance for--
          (1) the development of fuels, targets, and processes for 
        domestic molybdenum-99 production that do not use highly 
        enriched uranium; and
          (2) commercial operations using the fuels, targets, and 
        processes described in paragraph (1).
  (c) Uranium Lease and Take-back.--
          (1) In general.--The Secretary shall establish a program to 
        make low-enriched uranium available, through lease contracts, 
        for irradiation for the production of molybdenum-99 for medical 
        uses.
          (2) Title.--The lease contracts shall provide for the 
        producers of the molybdenum-99 to take title to and be 
        responsible for the molybdenum-99 created by the irradiation, 
        processing, or purification of uranium leased under this 
        section.
          (3) Duties.--
                  (A) Secretary.--The lease contracts shall require the 
                Secretary--
                          (i) to retain responsibility for the final 
                        disposition of spent nuclear fuel created by 
                        the irradiation, processing, or purification of 
                        uranium leased under this section for the 
                        production of medical isotopes; and
                          (ii) to take title to and be responsible for 
                        the final disposition of radioactive waste 
                        created by the irradiation, processing, or 
                        purification of uranium leased under this 
                        section for which the Secretary determines the 
                        producer does not have access to a disposal 
                        path.
                  (B) Producer.--The producer of the spent nuclear fuel 
                and radioactive waste shall accurately characterize, 
                appropriately package, and transport the spent nuclear 
                fuel and radioactive waste prior to acceptance by the 
                Department.
          (4) Compensation.--
                  (A) In general.--Subject to subparagraph (B), the 
                lease contracts shall provide for compensation in cash 
                amounts equivalent to prevailing market rates for the 
                sale of comparable uranium products and for 
                compensation in cash amounts equivalent to the net 
                present value of the cost to the Federal Government 
                for--
                          (i) the final disposition of spent nuclear 
                        fuel and radioactive waste for which the 
                        Department is responsible under paragraph (3); 
                        and
                          (ii) other costs associated with carrying out 
                        the uranium lease and take-back program 
                        authorized by this subsection.
                  (B) Discount rate.--The discount rate used to 
                determine the net present value of costs described in 
                subparagraph (A)(ii) shall be not greater than the 
                average interest rate on marketable Treasury 
                securities.
          (5) Authorized use of funds.--The Secretary may obligate and 
        expend funds received under leases entered into under this 
        subsection, which shall remain available until expended, for 
        the purpose of carrying out the activities authorized by this 
        Act, including activities related to the final disposition of 
        spent nuclear fuel and radioactive waste for which the 
        Department is responsible under paragraph (3).
          (6) Exchange of uranium for services.--The Secretary shall 
        not barter or otherwise sell or transfer uranium in any form in 
        exchange for--
                  (A) services related to the final disposition of the 
                spent nuclear fuel and radioactive waste for which the 
                Department is responsible under paragraph (3); or
                  (B) any other services associated with carrying out 
                the uranium lease and take-back program authorized by 
                this subsection.
  (d) Coordination of Environmental Reviews.--The Department and the 
Nuclear Regulatory Commission shall ensure to the maximum extent 
practicable that environmental reviews for the production of the 
medical isotopes shall complement and not duplicate each review.
  (e) Operational Date.--The Secretary shall establish a program as 
described in subsection (c)(3) not later than 3 years after the date of 
enactment of this Act.
  (f) Radioactive Waste.--Notwithstanding section 2 of the Nuclear 
Waste Policy Act of 1982 (42 U.S.C. 10101), radioactive material 
resulting from the production of medical isotopes that has been 
permanently removed from a reactor or subcritical assembly and for 
which there is no further use shall be considered low-level radioactive 
waste if the material is acceptable under Federal requirements for 
disposal as low-level radioactive waste.
  (g) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary $5,000,000 for the establishment of a 
program for the final disposition of spent nuclear fuel and radioactive 
waste for which the Department is responsible under subsection (c).

SEC. 4. EXPORTS.

  Section 134 of the Atomic Energy Act of 1954 (42 U.S.C. 2160d) is 
amended by striking subsection c. and inserting the following:
  ``c. Effective 7 years after the date of enactment of the American 
Medical Isotopes Production Act of 2011, the Commission may not issue a 
license for the export of highly enriched uranium from the United 
States for the purposes of medical isotope production.
  ``d. The period referred to in subsection b. may be extended for no 
more than 6 years if, no earlier than 6 years after the date of 
enactment of the American Medical Isotopes Production Act of 2011, the 
Secretary of Energy certifies to the Committee on Energy and Commerce 
of the House of Representatives and the Committee on Energy and Natural 
Resources of the Senate that--
          ``(1) there is insufficient global supply of molybdenum-99 
        produced without the use of highly enriched uranium available 
        to satisfy the domestic United States market; and
          ``(2) the export of United States-origin highly enriched 
        uranium for the purposes of medical isotope production is the 
        most effective temporary means to increase the supply of 
        molybdenum-99 to the domestic United States market.
  ``e. To ensure public review and comment, the development of the 
certification described in subsection c. shall be carried out through 
announcement in the Federal Register.
  ``f. At any time after the restriction of export licenses provided 
for in subsection b. becomes effective, if there is a critical shortage 
in the supply of molybdenum-99 available to satisfy the domestic United 
States medical isotope needs, the restriction of export licenses may be 
suspended for a period of no more than 12 months, if--
          ``(1) the Secretary of Energy certifies to the Congress that 
        the export of United States-origin highly enriched uranium for 
        the purposes of medical isotope production is the only 
        effective temporary means to increase the supply of molybdenum-
        99 necessary to meet United States medical isotope needs during 
        that period; and
          ``(2) the Congress enacts a Joint Resolution approving the 
        temporary suspension of the restriction of export licenses.
  ``g. As used in this section--
          ``(1) the term `alternative nuclear reactor fuel or target' 
        means a nuclear reactor fuel or target which is enriched to 
        less than 20 percent in the isotope U-235;
          ``(2) the term `highly enriched uranium' means uranium 
        enriched to 20 percent or more in the isotope U-235;
          ``(3) a fuel or target `can be used' in a nuclear research or 
        test reactor if--
                  ``(A) the fuel or target has been qualified by the 
                Reduced Enrichment Research and Test Reactor Program of 
                the Department of Energy; and
                  ``(B) use of the fuel or target will permit the large 
                majority of ongoing and planned experiments and medical 
                isotope production to be conducted in the reactor 
                without a large percentage increase in the total cost 
                of operating the reactor; and
          ``(4) the term `medical isotope' includes molybdenum-99, 
        iodine-131, xenon-133, and other radioactive materials used to 
        produce a radiopharmaceutical for diagnostic or therapeutic 
        procedures or for research and development.''.

SEC. 5. REPORT ON DISPOSITION OF EXPORTS.

  Not later than 1 year after the date of the enactment of this Act, 
the Chairman of the Nuclear Regulatory Commission, after consulting 
with other relevant agencies, shall submit to the Congress a report 
detailing the current disposition of previous United States exports of 
highly enriched uranium used as fuel or targets in a nuclear research 
or test reactor, including--
          (1) their location;
          (2) whether they are irradiated;
          (3) whether they have been used for the purpose stated in 
        their export license;
          (4) whether they have been used for an alternative purpose 
        and, if so, whether such alternative purpose has been 
        explicitly approved by the Commission;
          (5) the year of export, and reimportation, if applicable;
          (6) their current physical and chemical forms; and
          (7) whether they are being stored in a manner which 
        adequately protects against theft and unauthorized access.

SEC. 6. DOMESTIC MEDICAL ISOTOPE PRODUCTION.

  (a) In General.--Chapter 10 of the Atomic Energy Act of 1954 (42 
U.S.C. 2131 et seq.) is amended by adding at the end the following:
  ``Sec. 112. Domestic Medical Isotope Production.-- a. The Commission 
may issue a license, or grant an amendment to an existing license, for 
the use in the United States of highly enriched uranium as a target for 
medical isotope production in a nuclear reactor, only if, in addition 
to any other requirement of this Act--
          ``(1) the Commission determines that--
                  ``(A) there is no alternative medical isotope 
                production target, enriched in the isotope U-235 to 
                less than 20 percent, that can be used in that reactor; 
                and
                  ``(B) the proposed recipient of the medical isotope 
                production target has provided assurances that, 
                whenever an alternative medical isotope production 
                target can be used in that reactor, it will use that 
                alternative in lieu of highly enriched uranium; and
          ``(2) the Secretary of Energy has certified that the United 
        States Government is actively supporting the development of an 
        alternative medical isotope production target that can be used 
        in that reactor.
  ``b. As used in this section--
          ``(1) the term `alternative medical isotope production 
        target' means a nuclear reactor target which is enriched to 
        less than 20 percent of the isotope U-235;
          ``(2) a target `can be used' in a nuclear research or test 
        reactor if--
                  ``(A) the target has been qualified by the Reduced 
                Enrichment Research and Test Reactor Program of the 
                Department of Energy; and
                  ``(B) use of the target will permit the large 
                majority of ongoing and planned experiments and medical 
                isotope production to be conducted in the reactor 
                without a large percentage increase in the total cost 
                of operating the reactor;
          ``(3) the term `highly enriched uranium' means uranium 
        enriched to 20 percent or more in the isotope U-235; and
          ``(4) the term `medical isotope' includes molybdenum-99, 
        iodine-131, xenon-133, and other radioactive materials used to 
        produce a radiopharmaceutical for diagnostic or therapeutic 
        procedures or for research and development.''.
  (b) Table of Contents.--The table of contents for the Atomic Energy 
Act of 1954 is amended by inserting the following new item at the end 
of the items relating to chapter 10 of title I:

``Sec. 112. Domestic medical isotope production.''.

SEC. 7. ANNUAL DEPARTMENT REPORTS.

  (a) In General.--Not later than 1 year after the date of enactment of 
this Act, and annually thereafter for 5 years, the Secretary shall 
report to Congress on Department actions to support the production in 
the United States, without the use of highly enriched uranium, of 
molybdenum-99 for medical uses.
  (b) Contents.--The reports shall include the following:
          (1) For medical isotope development projects--
                  (A) the names of any recipients of Department support 
                under section 3;
                  (B) the amount of Department funding committed to 
                each project;
                  (C) the milestones expected to be reached for each 
                project during the year for which support is provided;
                  (D) how each project is expected to support the 
                increased production of molybdenum-99 for medical uses;
                  (E) the findings of the evaluation of projects under 
                section 3(a)(2); and
                  (F) the ultimate use of any Department funds used to 
                support projects under section 3.
          (2) A description of actions taken in the previous year by 
        the Secretary to ensure the safe disposition of spent nuclear 
        fuel and radioactive waste for which the Department is 
        responsible under section 3(c).

SEC. 8. NATIONAL ACADEMY OF SCIENCES REPORT.

  (a) In General.--The Secretary shall enter into an arrangement with 
the National Academy of Sciences to conduct a study of the state of 
molybdenum-99 production and utilization, to be provided to Congress 
not later than 5 years after the date of enactment of this Act.
  (b) Contents.--The report shall include the following:
          (1) For molybdenum-99 production--
                  (A) a list of all facilities in the world producing 
                molybdenum-99 for medical uses, including an indication 
                of whether these facilities use highly enriched uranium 
                in any way;
                  (B) a review of international production of 
                molybdenum-99 over the previous 5 years, including--
                          (i) whether any new production was brought 
                        online;
                          (ii) whether any facilities halted production 
                        unexpectedly; and
                          (iii) whether any facilities used for 
                        production were decommissioned or otherwise 
                        permanently removed from service; and
                  (C) an assessment of progress made in the previous 5 
                years toward establishing domestic production of 
                molybdenum-99 for medical uses, including the extent to 
                which other medical isotopes that have been produced 
                with molybdenum-99, such as iodine-131 and xenon-133, 
                are being used for medical purposes.
          (2) An assessment of the progress made by the Department and 
        others to eliminate all worldwide use of highly enriched 
        uranium in reactor fuel, reactor targets, and medical isotope 
        production facilities.

SEC. 9. BUDGETARY EFFECTS.

  The budgetary effects of this Act, for the purpose of complying with 
the Statutory Pay-As-You-Go-Act of 2010, shall be determined by 
reference to the latest statement titled ``Budgetary Effects of PAYGO 
Legislation'' for this Act, submitted for printing in the Congressional 
Record by the Chairman of the Senate Budget Committee, provided that 
such statement has been submitted prior to the vote on passage.

                                Purpose

    The purpose of S. 99 is to promote the domestic production 
of molybdenum-99 for medical isotope production and to 
condition and phase out the export of highly enriched uranium 
for the production of medical isotopes.

                          Background and Need

    Molybdenum-99 and its decay product, technetium-99m, are 
the workhorses of nuclear medicine. Currently, molybdenum-99 is 
produced by irradiating a uranium-235 target in a nuclear 
reactor, which causes the uranium-235 atoms to split into 
molybdenum-99 and other fission products. Molybdenum-99 is then 
chemically separated from the other fission products, collected 
in small cylinders known as technetium generators, and shipped 
to radiopharmacies and hospitals.
    Molybdenum-99 is unstable. Half of any given amount decays 
in about 66 hours, producing technetium-99m. Technetium-99m is 
recovered from the generator and used in medical diagnostic 
imaging of the brain, kidney, heart, bone, liver, and lung. 
Technetium-99m, like molybdenum-99 is unstable; half of any 
given amount decays in about 6 hours. A technetium generator 
only lasts about 6 days.
    The production of molybdenum-99 and technetium-99m are 
extremely important to the detection and treatment of disease. 
Technetium-99m is used in two-thirds of the 16 million nuclear 
medical procedures performed in the United States each year, 
which amounts to about 41,000 uses per day. Because of their 
short ``half-lives,'' neither molybdenum-99 nor technetium-99m 
can be stockpiled. They must be produced on an ongoing and 
reliable basis to ensure constant availability for necessary 
medical procedures.
    The United States consumes approximately half of the 
world's supply of molybdenum-99, but since 1989 has had no 
domestic source of supply. Between 95 and 98 percent of the 
world's molybdenum-99 is produced by four companies in Canada, 
Belgium, the Netherlands, and South Africa. The United States 
is dependent on two of these companies: MDS Nordion, which is 
based in Canada, historically supplies about 60 percent of our 
needs; and Mallinckrodt, which is based in the Netherlands and 
supplies the rest.
    Because the United States is 100 percent dependent upon 
foreign sources for these medical isotopes, any delay in their 
production could cause a shortage of molybdenum-99 and 
technetium-99m. For example, the Canadian reactor that produces 
molybdenum-99 was shut down between May 2009 and the fall of 
2010. The Netherlands reactor was also shut down for repairs 
between February and the fall of 2010. The result of the outage 
of these two aging reactors was that there were days during the 
summer of 2010 when U.S. patients could not receive technetium-
99m, thus forgoing important diagnostic procedures. These 
reactors are expected to shut down in 2016, thus exacerbating 
the shortage of technetium-99m to U.S. patients for the 
foreseeable future.
    In addition to the current supply concerns, molybdenum-99 
production has long posed nuclear proliferation concerns. All 
four of the companies that are responsible for 95 to 98 percent 
of the world's production use highly enriched uranium targets 
to produce molybdenum-99. The United States is the world's 
primary supplier of the highly enriched uranium used for 
molybdenum-99 production. Highly enriched uranium, if obtained 
by terrorists or a rogue state, could be used to produce a 
nuclear weapon.
    As a result of the nuclear proliferation concern, the 
Energy Policy Act of 1992 amended the Atomic Energy Act of 1954 
to restrict the export of highly enriched uranium. The Energy 
Policy Act of 2005 subsequently relaxed this restriction to 
permit exports to certain countries to continue for medical 
isotope production. In addition, the Energy Policy Act of 2005 
asked the National Academy of Sciences to determine if it is 
feasible to obtain medical isotopes from sources using low 
enriched uranium targets.
    The National Academy of Sciences published its report, 
Medical Isotope Production Without Highly Enriched Uranium, in 
January 2009. The Academy found that although, at present, 
sufficient quantities of medical isotopes to meet our domestic 
needs cannot be produced without highly enriched uranium, there 
is no technical reason that adequate quantities could not be 
produced using low enriched uranium targets. It noted that 
Argentina and Australia are already producing molybdenum-99 
with low enriched uranium targets, though in relatively small 
quantities sufficient only to meet their regional needs. It 
also found that use of highly enriched uranium targets could be 
phased out and replaced by low enriched uranium targets in 7 to 
10 years. This conclusion was further bolstered by the November 
2009 Report of the Export Review Panel to Canada's Minister of 
Natural Resources, which recommended that any new reactor-based 
source of molybdenum-99 use low enriched uranium.
    S. 99 is needed to help facilitate the development of a 
stable domestic supply of molybdenum-99, as well as the 
conversion of medical isotope production from the use of highly 
enriched to low enriched uranium both by directing the 
Secretary of Energy to establish a technology neutral program 
to support the production of molybdenum-99 without the use of 
highly enriched uranium and by phasing out the export of highly 
enriched uranium.

                          Legislative History

    S. 99 was introduced by Senator Bingaman on January 25, 
2011. Senator Murkowski was an original cosponsor. As 
introduced, S. 99 was identical to H.R. 3276, as reported by 
the Committee on Energy and Natural Resources, in the 111th 
Congress. H.R. 3276 was introduced by Representative Markey on 
July 21, 2009, was reported by the Committee on Energy and 
Commerce on November 4, 2009 (H. Rept. 111-328), and passed the 
House on November 5, 2009 by a vote of 400 to 17.
    The Committee on Energy and Natural Resources held a 
hearing on H.R. 3276 on December 3, 2009 (S. Hrg. 111-314), and 
ordered it favorably reported, with amendments, on December 16, 
2009. (S. Rept. 111-120.)
    The Committee held a hearing on S. 99 on February 1, 2011 
(S. Hrg. 112-4), and ordered it favorably reported, with an 
amendment in the nature of a substitute, on April 12, 2011.

                        Committee Recommendation

    The Senate Committee on Energy and Natural Resources, in 
open business session on April 12, 2011, by a voice vote of a 
quorum present recommends that the Senate pass S. 99, if 
amended as described herein.

                          Committee Amendments

    During its consideration of S. 99, the Committee adopted an 
amendment in the nature of a substitute. The amendment makes a 
number of changes in the bill as introduced.
    New definitions for the terms ``Department'' and 
``Secretary'' are added to the definition section, which is 
moved to the beginning of the bill and redesignated ``section 
2'' instead of ``section 8.''
    The exemption in section 3(a)(3) (formerly section 
2(a)(3)), which permits existing reactors fueled with highly 
enriched uranium to participate in the development program, is 
restricted to reactors in the United States.
    The uranium lease and take-back program in section 3(c) 
(formerly section 4(c)) is clarified by providing that the 
producers will take title to the molybdenum-99, the Secretary 
will take title to the spent nuclear fuel and radioactive 
wastes for which the producers do not have access to a disposal 
path, and the producers will characterize, package, and 
transport the spent nuclear fuel and radioactive waste prior to 
acceptance by the Department. Former section 4(c) is further 
modified to require producers to compensate the Department for 
costs associated with the lease and take-back program (in the 
new section 3(c)(4)), to authorize the Secretary to spend funds 
received under the leases to carry out the program, including 
the disposal of radioactive waste for which the Department is 
responsible under the lease contracts (in section 3(c)(5)), and 
to clarify the restrictions on exchanging of uranium for 
services (in section 3(c)(6)).
    New subsections are added to require the Department and the 
Nuclear Regulatory Commission to coordinate environmental 
reviews for medical isotope production (section 3(d)), to 
require the Secretary to make the program to take back spent 
nuclear fuel and radioactive wastes operational within 3 years 
of the date of enactment (section 3(e)), to allow radioactive 
material resulting from the production of medical isotopes for 
which there is no further use to be treated as low-level 
radioactive waste if it meets federal requirements for disposal 
as low-level radioactive waste (section 3(f)), and to authorize 
appropriation of $5 million to establish the program to take 
back spent nuclear fuel and radioactive waste.
    Section 4 (formerly section 3) is modified to strike only 
section 134c. (and not section 134b.) of the Atomic Energy Act 
of 1954.
    Section 5 (formerly section 4) is modified to require the 
Nuclear Regulatory Commission to report on the exports of 
highly enriched uranium used as fuel or isotope targets, rather 
than on all highly enriched uranium exports.

                      Section-by-Section Analysis

    Section 1 provides a short title.
    Section 2 defines terms used throughout the Act.
    Section 3(a)(1) directs the Secretary of Energy (the 
Secretary) to establish a technology-neutral, cost-shared 
program to evaluate and support projects for the production of 
molybdenum-99 for medical uses without the use of highly 
enriched uranium.
    Subsection (a)(2) provides criteria for evaluating 
projects.
    Subsection (a)(3) permits existing U.S. reactors fueled 
with highly enriched uranium to participate in the program 
under specified conditions.
    Subsection (a)(4) requires the Secretary to develop and 
update a program plan through public workshops, and to use the 
Nuclear Science Advisory Committee to review program progress.
    Subsection (a)(5) authorizes $143 million to be 
appropriated to the Secretary for fiscal years 2011 through 
2014 to carry out the program.
    Subsection (b) directs the Secretary to establish a program 
to provide assistance for the development of fuels, targets, 
and processes for production of molybdenum-99 without the use 
of highly enriched uranium, and for commercial operations using 
such fuels, targets, and processes.
    Subsection (c)(1) directs the Secretary to establish a 
program to supply, through lease contracts, low enriched 
uranium for use in the production of molybdenum-99 for medical 
uses.
    Subsection (c)(2) requires that the lease contracts provide 
for the producers of molybdenum-99 to take title to and be 
responsible for the molybdenum-99 derived from the low enriched 
uranium.
    Subsection (c)(3)(A) requires the Secretary to be 
responsible for the final disposition of the spent nuclear fuel 
from the lease contracts and to take title to and be 
responsible for the waste created through the irradiation, 
processing, or purification of the low enriched uranium from 
the lease contracts for which the Secretary determines that the 
producer of the molybdenum-99 does not have a commercially 
available disposal path.
    Subsection (c)(3)(B) requires the producer of the 
molybdenum-99 to accurately characterize, appropriately 
package, and transport the spent nuclear fuel and radioactive 
waste (for which there is no commercial disposal path) prior to 
acceptance by the Department.
    Subsection (c)(4)(A) requires the lease contracts to 
provide for compensation to be paid to the Department in cash 
for the low-enriched uranium leased under the contracts, the 
final disposal of the spent fuel and radioactive waste, and 
other costs of carrying out the program. It further provides 
that the compensation for the leased uranium be in amounts 
equal to prevailing market rates for the sale of comparable of 
uranium products, and that the compensation for final 
disposition and other costs be in amounts equal to the net 
present value of the cost to the Federal Government. 
Subparagraph (B) provides that the discount rate used to 
determine the net present value shall not be greater than the 
average interest rate on marketable Treasury securities. To be 
cost neutral, these securities should correspond to the period 
for final disposal of spent nuclear fuel and radioactive waste.
    Subsection (c)(5) authorizes the Secretary to obligate and 
expend funds received under the lease contracts without fiscal 
year limitation for activities in the Act, including those 
associated with final disposition of the spent nuclear fuel and 
radioactive waste.
    Subsection (c)(6) prohibits the use of bartering uranium 
for services of any kind associated with the lease contracts 
and final disposition of spent nuclear fuel and radioactive 
waste.
    Subsection (d) directs that the Department of Energy and 
the Nuclear Regulatory Commission, shall to the greatest extent 
practicable ensure that environmental reviews complement and 
not duplicate each other through the use of cooperating 
agencies or other regulatory mechanisms.
    Subsection (e) requires that the Secretary establish the 
lease contract program, including the ability to take spent 
nuclear fuel and radioactive waste under the lease contracts 
not later than 3 years after date of enactment.
    Subsection (f) allows radioactive material resulting from 
the production of medical isotopes to be classified as low-
level radioactive waste if it meets federal requirements for 
disposal as low-level radioactive waste.
    Subsection (g) authorizes the appropriation of $5,000,000 
to start up the program to take back the spent nuclear fuel and 
radioactive waste under subsection (c).
    Section 4 amends section 134 of the Atomic Energy Act of 
1954, 42 U.S.C. 2160d, by striking subsection (c), and by 
adding 5 new subsections designated (c) through (f). New 
subsection (c) prohibits the Nuclear Regulatory Commission from 
issuing a license for the export of highly enriched uranium for 
medical isotope production effective 7 years after the date of 
enactment.
    New Atomic Energy Act section 134d. permits the 7-year 
period in subsection (c) to be extended for up to 6 additional 
years if the Secretary certifies that there is insufficient 
global supply of molybdenum-99 produced without the use of 
highly enriched uranium to satisfy the domestic market and that 
the export of highly enriched uranium is the most effective 
temporary means to increase the domestic supply of molybdenum-
99.
    New section 134e. requires public notice and comment on the 
certification.
    New section 134f. provides for the suspension, for up to 12 
months, of the prohibition on the export licensing of highly 
enriched uranium after it has become effective if there is a 
critical shortage of molybdenum-99, the Secretary certifies 
that the export of highly enriched uranium is the only 
effective temporary means to increase the supply, and Congress 
enacts a joint resolution approving the temporary suspension.
    New section 134g. defines terms used in section 134 of the 
Atomic Energy Act of 1954.
    Section 5 requires the Chairman of the Nuclear Regulatory 
Commission to submit to Congress a report on the current 
disposition of previous exports of highly enriched uranium used 
as targets of fuel in a nuclear research or test reactor.
    Section 6 adds a new section 112 to the Atomic Energy Act 
of 1954 to authorize the Nuclear Regulatory Commission to 
license the use in the United States of highly enriched uranium 
as a target for medical isotope production only if, in addition 
to other requirements of the Atomic Energy Act, the Commission 
determines that no low enriched uranium target can be used in 
the reactor, and the recipient has provided assurances that if 
a low enriched uranium target can be used, it will be, and the 
Secretary certifies that the United States Government is 
actively supporting the development of low enriched uranium 
targets for the reactor.
    Section 7 requires the Secretary to report to Congress one 
year after the date of enactment of S. 99, and annually for the 
ensuing 5 years, on actions to support the production of 
molybdenum-99 for medical uses without the use of highly 
enriched uranium.
    Section 8 requires the National Academy of Sciences to 
study the state of molybdenum-99 production and use not later 
than 5 years after the date of enactment of S. 99.
    Section 9 provides that the Chairman of the Budget Senate 
Committee shall determine and submit to the Congressional 
Record the budgetary affects of this Act under the ``Pay-As-
You-Go-Act of 2010''.

                   Cost and Budgetary Considerations

    The following estimate of costs of this measure has been 
provided by the Congressional Budget Office.

S. 99--American Medical Isotopes Production Act of 2011

    Summary: S. 99 would authorize funding to support projects 
to produce molybdenum-99, a radioactive isotope used in certain 
medical procedures. Assuming appropriation of the authorized 
amounts, CBO estimates that implementing S. 99 would cost $150 
million over the 2011-2016 period. CBO also estimates that 
enacting the legislation would affect direct spending; 
therefore, pay-as-you-go procedures apply. CBO estimates, 
however, that the net impact on direct spending would be 
negligible in any given year. Enacting S. 99 would not affect 
revenues.
    S. 99 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act (UMRA) 
and would impose no costs on state, local, or tribal 
governments.
    Estimated cost to the Federal Government: The estimated 
budgetary impact of S. 99 is shown in the following table. The 
costs of this legislation fall within budget function 270 
(energy).

----------------------------------------------------------------------------------------------------------------
                                                               By fiscal year, in millions of dollars--
                                                    ------------------------------------------------------------
                                                       2012      2013      2014      2015      2016    2012-2016
----------------------------------------------------------------------------------------------------------------
                                  CHANGES IN SPENDING SUBJECT TO APPROPRIATION

Estimated Authorization Level......................       150         0         0         0         0        150
Estimated Outlays..................................        43        38        30        24        15        150
----------------------------------------------------------------------------------------------------------------

    Basis of estimate: For this estimate, CBO assumes that S. 
99 will be enacted near the end of fiscal year 2011 and that 
authorized amounts will be provided near the start of 2012.
    CBO estimates that implementing S. 99 would require 
appropriations totaling $150 million for a program to support 
projects to produce molybdenum-99, a radioactive isotope 
produced from uranium, for use in certain medical procedures. 
In addition, the bill would direct the Secretary of Energy to 
make low-enriched uranium (LEU) available through lease 
contracts to producers of molybdenum-99. Such lease contracts 
would provide for the Secretary to retain financial 
responsibility for certain waste generated by the irradiation, 
processing, or purification of LEU.
    CBO estimates that implementing S. 99 would increase 
discretionary spending by $150 million over the 2012-2016 
period. We also estimate that leasing LEU would have a 
negligible net impact on direct spending.

Spending Subject to Appropriation

    S. 99 would specifically authorize appropriations totaling 
$143 million to provide direct financial support for projects 
to produce molybdenum-99 and $5 million to establish a program 
to dispose of certain waste resulting from federal leases of 
LEU. In addition, CBO estimates that completing various 
studies, reports, and regulatory activities under the bill 
would require appropriations totaling $2 million over the 2012-
2016 period. Assuming appropriation of the authorized and 
estimated amounts, CBO estimates that spending would total $150 
million over the 2012-2016 period. That estimate is based on 
information from the Department of Energy (DOE) about the types 
of molybdenum-99 projects that might be supported under S. 99 
and takes into account historical spending patterns for similar 
activities.
    Under S. 99, the federal government would be responsible 
for disposing of certain types of waste generated by 
molybdenum-99 producers who lease LEU from DOE. Spending 
related to waste generated under such leases would be subject 
to the availability of appropriated funds. Based on information 
from DOE about the volume of LEU that the agency anticipates 
would be leased under S. 99, CBO expects that resulting 
quantities of waste would be small. While waste disposal costs 
would be incurred over many years and could reach significant 
levels over time, CBO estimates that any increased costs over 
the 2012-2016 period would not exceed the $5 million 
specifically authorized to be appropriated under the bill.

Direct Spending

    S. 99 would direct the Secretary to lease LEU to producers 
of molybdenum-99. Under current law, CBO estimates that sales 
of the material that would be leased under the bill would 
otherwise generate offsetting receipts (a credit against direct 
spending) totaling about $1 million annually. Because S. 99 
would require that lessees pay fees equivalent to the 
prevailing market rates for the sale of comparable uranium 
products, CBO estimates that any differences in receipts 
generated under the bill would be negligible in any given year.
    The bill also would require that the Secretary charge LEU 
lessees a fee to offset the net present value of DOE's 
anticipated costs to dispose of certain types of waste 
generated from leased LEU, Under the bill DOE could spend those 
fees, without further appropriation, for activities related to 
waste disposal. Based on information from DOE about the range 
of potential costs the agency might face to dispose of waste 
pursuant to LEU leases, CBO estimates that any net change in 
direct spending resulting from the collection and spending of 
such fees would be negligible in any given year.
    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. CBO estimates that enacting S. 99 would have a 
negligible net impact on direct spending in any given year, and 
would not have any impact on revenues.
    Intergovernmental and private-sector impact: S. 99 contains 
no intergovernmental or private-sector mandates as defined in 
UMRA and would impose no costs on state, local, or tribal 
governments.
    Estimate prepared by: Federal Costs: Megan Carroll; Impact 
on State, Local, and Tribal Governments: Ryan Miller; Impact on 
the Private Sector: Amy Petz.
    Estimate approved by: Theresa Gullo, Deputy Assistant 
Director for Budget Analysis.

                      Regulatory Impact Evaluation

    In compliance with paragraph 11(b) of rule XXVI of the 
Standing Rules of the Senate, the Committee makes the following 
evaluation of the regulatory impact which would be incurred in 
carrying out S. 99.
    The bill is not a regulatory measure in the sense of 
imposing Government established standards or significant 
economic responsibilities on private individuals and 
businesses.
    No personal information would be collected in administering 
the program. Therefore, there would be no impact on personal 
privacy.
    Little, if any, additional paperwork would result from the 
enactment of S. 99.

                   Congressionally Directed Spending

    S. 99, as reported, does not contain congressionally 
directed spending items, limited tax benefits, or limited 
tariff benefits as defined in rule XLIV of the Standing Rules 
of the Senate.

                        Executive Communications

    The testimony of the National Nuclear Security 
Administration at the Committee's hearing on S. 99 on February 
1, 2011, follows:

 Dr. Parrish Staples, Director, Office of European and African Threat 
    Reduction, Global Threat Reduction Initiative, Defense Nuclear 
Nonproliferation, National Nuclear Security Administration, Department 
                               of Energy

    Chairman Bingaman, Ranking Member Murkowski, and Committee 
Members, thank you for the opportunity to testify about the 
National Nuclear Security Administration's (NNSA's) support for 
accelerating development of a domestic commercial supply of 
Molybdenum-99 (Mo-99) without using highly enriched uranium 
(HEU). This effort is part of our larger global 
nonproliferation program to minimize and, where possible, 
eliminate the use of HEU in civilian nuclear applications, 
including in the production of medical radioisotopes. My 
testimony will update you on testimony provided to this 
committee in December 2009 about (1) the nonproliferation and 
medical benefits of S.99, the American Medical Isotopes 
Production Act of 2011; (2) the NNSA's progress to accelerate 
the establishment of a non-HEU based domestic commercial supply 
of Mo-99; and (3) changing global market conditions that could 
undermine our efforts for a reliable domestic production of 
non-HEU-based Mo-99.
    Mo-99 is the parent isotope of Technetium-99m, which is 
used in approximately 50,000 diagnostic medical procedures 
every day in the United States. It has a very short half life 
and therefore must be produced on a continuous basis to meet 
the needs of the medical community. Any interruptions in 
production can place patients at risk if diagnostic tests 
cannot be performed.
    Currently, the United States depends entirely on foreign 
producers for all of its Mo-99. Of the major international 
suppliers of commercial Mo-99, Canada, the Netherlands, and 
Belgium use HEU targets to produce this vital medical isotope. 
Only South Africa, which partnered with NNSA to convert its HEU 
reactor to low enriched uranium (LEU) fuel, has begun LEU-based 
Mo-99 production.
    Mo-99 production processes based on HEU utilize nuclear 
material enriched to the same degree as nuclear material used 
to produce nuclear weapons and improvised nuclear devices. 
World leaders at the 2010 Nuclear Security Summit and other 
fora underscored the need to minimize and, where possible, 
eliminate the use of HEU due to the grave threats posed by 
excess nuclear materials and the possible acquisition of such 
materials by terrorists or rogue states. New technical advances 
in Mo-99 production processes, many of which have been 
supported by the U.S. Department of Energy and NNSA working 
closely with industry and our national laboratories, are 
demonstrating that HEU is no longer required. S. 99, the 
American Medical Isotopes Production Act of 2011 will encourage 
Mo-99 suppliers worldwide not to use HEU and to develop a 
reliable supply of Mo-99 for the U.S. medical community. 
Provisions of this legislation, in particular Section 5, are 
aligned with the NNSA's nonproliferation mission to assist in 
the conversion of research reactors and isotope production 
facilities worldwide from the use of HEU to LEU, and to 
establish a reliable supply of Mo-99 produced without the use 
of HEU in the United States.
    Furthermore, the HEU-free, U.S.-based Mo-99 production 
encouraged by the American Medical Isotopes Production Act of 
2011 would serve as an example for eliminating HEU in the 
global medical isotope business. The proposed legislation will 
promote the reliable supply of Mo-99 to hospitals throughout 
our country and will ultimately ensure the level of patient 
care that our citizens require in a way that is consistent with 
our nuclear nonproliferation goals.
    As has been the case in 2009-2010, global Mo-99 shortages 
can occur with any change in the production schedules of the 
major producers. Unforeseen shutdowns due to technical problems 
or scheduled maintenance of the aging reactors currently 
producing Mo-99 can threaten the fragile supply chain for the 
much needed medical isotopes. Under the leadership of the 
Office of Science and Technology Policy of the Executive Office 
of the President, an Interagency working group, which includes 
NNSA and other Department of Energy offices, is pursuing the 
following actions: (1) investigating options to focus on near-
term efforts to increase the supply to the U.S. during periods 
when the major suppliers will be out of operation; (2) 
coordinating efforts to maximize the success of the commercial 
sector to develop new longer-term production capabilities for 
the U.S. medical community; and (3) working with 
representatives of the medical community to ensure 
communication about the timing of scheduled maintenance to more 
efficiently manage use of available Mo-99 supplies.
    NNSA frequently meets with the existing major global Mo-99 
producers as part of its nuclear nonproliferation agenda to 
promote the development of a long-term reliable supply of Mo-99 
using LEU. NNSA's programs can also assist other countries with 
conversion, where possible. For example, with NNSA's support, 
the South African Nuclear Energy Corporation (Necsa) became the 
first major supplier to produce large-scale quantities of LEU-
based Mo-99, and completed its first shipment of FDA-approved, 
LEU-based Mo-99 to the United States in December 2010. Necsa's 
achievement to produce large-scale quantities of LEU-based Mo-
99 is an important nonproliferation advance as it demonstrates 
the technical viability of producing Mo-99 consistent with 
international commitments to minimize and eliminate the use of 
HEU in isotope production. With appropriate Congressional 
support, the long-term goal of steady state production from LEU 
could be achieved globally, and could thus provide a 
complementary, consistent supply of the medical isotope to 
health care providers.
    The 2009 National Academies report confirmed that 
production of Mo-99 is both technically and economically 
feasible, and as a result, NNSA is demonstrating the 
feasibility of non-HEU based Mo-99 production by working with 
four commercial entities to develop technology pathways to 
produce adequate quantities of Mo-99 for the United States. 
These include: LEU solution reactor technology; neutron capture 
technology; and accelerator technology. The strategy is to move 
away from reliance on a sole technology and a limited number of 
facilities, as is the case with the global Mo-99 market today. 
The goal is for each technology to be commercially successful, 
and therefore NNSA's approach is technology neutral. NNSA also 
makes available to these commercial partners the technical 
expertise of the U.S. national laboratories gained from their 
many years of work to develop non-HEU based Mo-99 production 
technologies. We share the goals of this bill and look forward 
to working with you to ensure the accomplishment of nuclear 
threat reduction activities and the development of a reliable 
supply of medical isotopes to the public, while ensuring 
greater Presidential flexibility.
    Despite the good progress, challenges remain that could 
obstruct the successful and accelerated establishment of a 
domestic supply of Mo-99. First, the major global producers 
have been and continue to be heavily subsidized by their 
governments. Such subsidies put at risk the economic viability 
of U.S. companies starting up high-tech, capital intensive 
businesses to produce non-HEU based Mo-99. A 2010 independent 
economic study by the Organization for Economic Cooperation and 
Development's Nuclear Energy Agency entitled ``An Economic 
Study of the Molybdenum-99 Supply Chain'', underscores this 
issue by citing that long-term subsidies have damaged 
industry's attempts to enter the global Mo-99 market. To 
provide a level playing field for U.S. companies, meet 
nonproliferation goals, and build a non-HEU based industry for 
Mo99, there must be a concerted global commitment that all new 
or expanded long-term Mo-99 production be undertaken without 
HEU. Very importantly, we must achieve full cost recovery 
across the entire global commercial industry. Any foreign 
government subsidy of HEU-based production puts the objectives 
of this legislation at risk.
    We have significant concerns about the scope, costs, and 
other implications of Section 2(c), the ``Uranium Lease and 
Take Back'' provision. In addition, the proposed program could 
risk lengthening the timeframe to Mo-99 production if the 
schedule of implementing the proposed ``Uranium Lease and Take 
Back'' subprogram were to have any linkage to the expected 
production schedule of the commercial projects to produce Mo-
99.
    NNSA will use its existing, well-established program 
management and procurement oversight tools to ensure that the 
innovative non-HEU based technologies it supports are developed 
on schedule and that cost-shared funds are properly applied so 
that Mo-99 is delivered to the U.S. market on time and within 
anticipated costs. NNSA will also coordinate closely with the 
Nuclear Regulatory Commission and the Food and Drug 
Administration on regulatory issues associated with the 
commercial use of new technology.
    To summarize, the Department of Energy and NNSA believe 
that, overall, this legislation will be helpful in providing 
public visibility to critical nonproliferation goals and to 
equally critical medical needs. With clear commitment and 
sustained support, we can secure our citizens' health needs as 
well as their national security. I thank Senator Bingaman, 
Ranking Member Murkowski, and Members of the Committee for your 
continued leadership in supporting this legislation and we look 
forward to working with you to address any issues raised here 
today. I appreciate the opportunity to testify and am ready to 
answer your questions.

                        Changes in Existing Law

    In compliance with paragraph 12 of rule XXVI of the 
Standing Rules of the Senate, changes in existing law made by 
the bill S. 99, as ordered reported, are shown as follows 
(existing law proposed to be omitted is enclosed in black 
brackets, new matter is printed in italic, existing law in 
which no change is proposed is shown in roman):

                       ATOMIC ENERGY ACT OF 1954

  AN ACT To amend the Atomic Energy Act of 1946, as amended, and for 
                            other purposes.

    Be it enacted by the Senate and House of Representatives of 
the United States of America in Congress assembled, That the 
Atomic Energy Act of 1946, as amended, is amended to read as 
follows:

                       ATOMIC ENERGY ACT OF 1954

                         TITLE I--ATOMIC ENERGY

     * * * * * * *

                   CHAPTER 10. ATOMIC ENERGY LICENSES

     * * * * * * *
Sec. 110. Exclusions.
Sec. 112. Domestic medical isotope production.

           *       *       *       *       *       *       *

TITLE I--ATOMIC ENERGY

           *       *       *       *       *       *       *

CHAPTER 10. ATOMIC ENERGY LICENSES

           *       *       *       *       *       *       *

    Sec. 111. a. The Nuclear Regulatory Commission is 
authorized to license the distribution of special nuclear 
material, source material, and byproduct material by the 
Department of Energy pursuant to section 54, 64, and 82 of this 
Act, respectively, in accordance with the same procedures 
established by law for the export licensing of such material by 
any person: Provided, That nothing in this section shall 
require the licensing of the distribution of byproduct material 
by the Department of Energy under section 82 of this Act.
    b. The Department of Energy shall not distribute any 
special nuclear material or source material under section 54 or 
64 of this Act other than under an export license issued by the 
Nuclear Regulatory Commission until (1) the Department has 
obtained the concurrence of the Department of State and has 
consulted with the Nuclear Regulatory Commission and the 
Department of Defense under mutually agreed procedures which 
shall be established within not more than ninety days after the 
date of enactment of this provision and (2) the Department 
finds based on a reasonable judgment of the assurances provided 
and the information available to the United States Government, 
that the criteria in section 127 of this Act or their 
equivalent and any applicable criteria in subsection 128 are 
met, and that the proposed distribution would not be inimical 
to the common defense and security.

SEC. 112. DOMESTIC MEDICAL ISOTOPE PRODUCTION.--

    a. The Commission may issue a license, or grant an 
amendment to an existing license, for the use in the United 
States of highly enriched uranium as a target for medical 
isotope production in a nuclear reactor, only if in addition to 
any other requirement of this Act--
          (1) the Commission determines that--
                  (A) there is no alternative medical isotope 
                production target, enriched in the isotope U-
                235 to less than 20 percent, that can be used 
                in that reactor; and
                  (B) the proposed recipient of the medical 
                isotope production target has provided 
                assurances that, whenever an alternative 
                medical isotope production target can be used 
                in that reactor, it will use that alternative 
                in lieu of highly enriched uranium;
          (2) the Secretary of Energy has certified that the 
        United States Government is actively supporting the 
        development of an alternative medical isotope 
        production target that can be used in that reactor.
    b. As used in this section--
          (1) the term ``alternative medical isotope production 
        target'' means a nuclear reactor target which is 
        enriched to less than 20 percent of the isotope U-235;
          (2) a target ``can be used'' in a nuclear research or 
        test reactor if--
                  (A) the target has been qualified by the 
                Reduced Enrichment Research and Test Reactor 
                Program of the Department of Energy; and
                  (B) use of the target will permit the large 
                majority of ongoing and planned experiments and 
                isotope production to be conducted in the 
                reactor without a large percentage increase in 
                the total cost of operating the reactor;
          (3) the term ``highly enriched uranium'' means 
        uranium enriched to 20 percent or more in the isotope 
        U-235; and
          (4) the term ``medical isotope'' includes molybdenum-
        99, iodine-131, xenon-133, and other radioactive 
        materials used to produce a radiopharmaceutical for 
        diagnostic, therapeutic procedures or for research and 
        development.

           *       *       *       *       *       *       *

CHAPTER 11. INTERNATIONAL ACTIVITIES

           *       *       *       *       *       *       *

SEC. 134. FURTHER RESTRICTIONS ON EXPORTS.--

    a. In General.--Except as provided in subsection b., the 
Commission may issue a license for the export of highly 
enriched uranium to be used as a fuel or target in a nuclear 
research or test reactor only if, in addition to any other 
requirements of this Act, the Commission determines that--
          (1) there is no alternative nuclear reactor fuel or 
        target enriched in the isotope 235 to a lesser percent 
        than the proposed export, that can be used in that 
        reactor;
          (2) the proposed recipient of that uranium has 
        provided assurances that, whenever an alternative 
        nuclear reactor fuel or target can be used in that 
        reactor, it will use that alternative in lieu of highly 
        enriched uranium; and
          (3) the United States Government is actively 
        developing an alternative nuclear reactor fuel or 
        target that can be used in that reactor.
    b. Medical Isotope Production.--
          (1) Definitions.--In this subsection:
                  (A) Highly enriched uranium.--The term 
                ``highly enriched uranium'' means uranium 
                enriched to include concentration of U-235 
                above 20 percent.
                  (B) Medical isotope.--The term ``medical 
                isotope'' includes Molybdenum 99, Iodine 131, 
                Xenon 133, and other radioactive materials used 
                to produce a radiopharmaceutical for 
                diagnostic, therapeutic procedures or for 
                research and development.
                  (C) Radiopharmaceutical.--The term 
                ``radiopharmaceutical'' means a radioactive 
                isotope that--
                          (i) contains byproduct material 
                        combined with chemical or biological 
                        material; and
                          (ii) is designed to accumulate 
                        temporarily in a part of the body for 
                        therapeutic purposes or for enabling 
                        the production of a useful image for 
                        use in a diagnosis of a medical 
                        condition.
                  (D) Recipient country.--The term ``recipient 
                country'' means Canada, Belgium, France, 
                Germany, and the Netherlands.
          (2) Licenses.--The Commission may issue a license 
        authorizing the export (including shipment to and use 
        at intermediate and ultimate consignees specified in 
        the license) to a recipient country of highly enriched 
        uranium for medical isotope production if, in addition 
        to any other requirements of this Act (except 
        subsection a.), the Commission determines that--
                  (A) a recipient country that supplies an 
                assurance letter to the United States 
                Government in connection with the consideration 
                by the Commission of the export license 
                application has informed the United States 
                Government that any intermediate consignees and 
                the ultimate consignee specified in the 
                application are required to use the highly 
                enriched uranium solely to produce medical 
                isotopes; and
                  (B) the highly enriched uranium for medical 
                isotope production will be irradiated only in a 
                reactor in a recipient country that--
                          (i) uses an alternative nuclear 
                        reactor fuel; or
                          (ii) is the subject of an agreement 
                        with the United States Government to 
                        convert to an alternative nuclear 
                        reactor fuel when alternative nuclear 
                        reactor fuel can be used in the 
                        reactor.
          (3) Review of physical protection requirements.--
                  (A) In general.--The Commission shall review 
                the adequacy of physical protection 
                requirements that, as of the date of an 
                application under paragraph (2), are applicable 
                to the transportation and storage of highly 
                enriched uranium for medical isotope production 
                or control of residual material after 
                irradiation and extraction of medical isotopes.
                  (B) Imposition of additional requirements.--
                If the Commission determines that additional 
                physical protection requirements are necessary 
                (including a limit on the quantity of highly 
                enriched uranium that may be contained in a 
                single shipment), the Commission shall impose 
                such requirements as license conditions or 
                through other appropriate means.
          (4) First report to congress.--
                  (A) NAS study.--The Secretary shall enter 
                into an arrangement with the National Academy 
                of Sciences to conduct a study to determine--
                          (i) the feasibility of procuring 
                        supplies of medical isotopes from 
                        commercial sources that do not use 
                        highly enriched uranium;
                          (ii) the current and projected demand 
                        and availability of medical isotopes in 
                        regular current domestic use;
                          (iii) the progress that is being made 
                        by the Department of Energy and others 
                        to eliminate all use of highly enriched 
                        uranium in reactor fuel, reactor 
                        targets, and medical isotope production 
                        facilities; and
                          (iv) the potential cost differential 
                        in medical isotope production in the 
                        reactors and target processing 
                        facilities if the products were derived 
                        from production systems that do not 
                        involve fuels and targets with highly 
                        enriched uranium.
                  (B) Feasibility.--For the purpose of this 
                subsection, the use of low enriched uranium to 
                produce medical isotopes shall be determined to 
                be feasible if--
                          (i) low enriched uranium targets have 
                        been developed and demonstrated for use 
                        in the reactors and target processing 
                        facilities that produce significant 
                        quantities of medical isotopes to serve 
                        United States needs for such isotopes;
                          (ii) sufficient quantities of medical 
                        isotopes are available from low 
                        enriched uranium targets and fuel to 
                        meet United States domestic needs; and
                          (iii) the average anticipated total 
                        cost increase from production of 
                        medical isotopes in such facilities 
                        without use of highly enriched uranium 
                        is less than 10 percent.
                  (C) Report by the secretary.--Not later than 
                5 years after the date of enactment of the 
                Energy Policy Act of 2005, the Secretary shall 
                submit to Congress a report that--
                          (i) contains the findings of the 
                        National Academy of Sciences made in 
                        the study under subparagraph (A); and
                          (ii) discloses the existence of any 
                        commitments from commercial producers 
                        to provide domestic requirements for 
                        medical isotopes without use of highly 
                        enriched uranium consistent with the 
                        feasibility criteria described in 
                        subparagraph (B) not later than the 
                        date that is 4 years after the date of 
                        submission of the report.
          (5) Second report to congress.--If the study of the 
        National Academy of Sciences determines under paragraph 
        (4)(A)(i) that the procurement of supplies of medical 
        isotopes from commercial sources that do not use highly 
        enriched uranium is feasible, but the Secretary is 
        unable to report the existence of commitments under 
        paragraph (4)(C)(ii), not later than the date that is 6 
        years after the date of enactment of the Energy Policy 
        Act of 2005, the Secretary shall submit to Congress a 
        report that describes options for developing domestic 
        supplies of medical isotopes in quantities that are 
        adequate to meet domestic demand without the use of 
        highly enriched uranium consistent with the cost 
        increase described in paragraph (4)(B)(iii).
          (6) Certification.--At such time as commercial 
        facilities that do not use highly enriched uranium are 
        capable of meeting domestic requirements for medical 
        isotopes, within the cost increase described in 
        paragraph (4)(B)(iii) and without impairing the 
        reliable supply of medical isotopes for domestic 
        utilization, the Secretary shall submit to Congress a 
        certification to that effect.
          (7) Sunset provision.--After the Secretary submits a 
        certification under paragraph (6), the Commission 
        shall, by rule, terminate its review of export license 
        applications under this subsection.
    [c. As used in this section--
          [(1) the term ``alternative nuclear reactor fuel or 
        target'' means a nuclear reactor fuel or target which 
        is enriched to less than 20 percent in the isotope U-
        235;
          [(2) the term ``highly enriched uranium'' means 
        uranium enriched to 20 percent or more in the isotope 
        U-235; and
          [(3) a fuel or target ``can be used'' in a nuclear 
        research or test reactor if--
                  [(A) the fuel or target has been qualified by 
                the Reduced Enrichment Research and Test 
                Reactor Program of the Department of Energy, 
                and
                  [(B) use of the fuel or target will permit 
                the large majority of ongoing and planned 
                experiments and isotope production to be 
                conducted in the reactor without a large 
                percentage increase in the total cost of 
                operating the reactor.]
    c. Effective 7 years after the date of enactment of the 
American Medical Isotopes Production Act of 2010, the 
Commission may not issue a license for the export of highly 
enriched uranium from the United States for the purposes of 
medical isotope production.
    d. The period referred to in subsection b. may be extended 
for no more than 6 years if, no earlier than 6 years after the 
date of enactment of the American Medical Isotopes Production 
Act of 2010, the Secretary of Energy certifies to the Committee 
on Energy and Commerce of the House of Representatives and the 
Committee on Energy and Natural Resources of the Senate that--
          (1) there is insufficient global supply of 
        molybdenum-99 produced without the use of highly 
        enriched uranium available to satisfy the domestic 
        United States market; and
          (2) the export of United States-origin highly 
        enriched uranium for the purposes of medical isotope 
        production is the most effective temporary means to 
        increase the supply of molybdenum-99 to the domestic 
        United States market.
    e. To ensure public review and comment, the development of 
the certification described in subsection c. shall be carried 
out through announcement in the Federal Register.
    f. At any time after the restriction of export licenses 
provided for in subsection b. becomes effective, if there is a 
critical shortage in the supply of molybdenum-99 available to 
satisfy the domestic United States medical isotope needs, the 
restriction of export licenses may be suspended for a period of 
no more than 12 months, if--
          (1) the Secretary of Energy certifies to the Congress 
        that the export of United States-origin highly enriched 
        uranium for the purposes of medical isotope production 
        is the only effective temporary means to increase the 
        supply of molybdenum-99 necessary to meet United States 
        medical isotope needs during that period; and
          (2) the Congress enacts a Joint Resolution approving 
        the temporary suspension of the restriction of export 
        licenses.
    g. As used in this section--
          (1) the term ``alternative nuclear reactor fuel or 
        target'' means a nuclear reactor fuel or target which 
        is enriched to less than 20 percent in the isotope U-
        235;
          (2) the term ``highly enriched uranium'' means 
        uranium enriched to 20 percent or more in the isotope 
        U-235;
          (3) a fuel or target ``can be used'' in a nuclear 
        research or test reactor if--
                  (A) the fuel or target has been qualified by 
                the Reduced Enrichment Research and Test 
                Reactor Program of the Department of Energy; 
                and
                  (B) use of the fuel or target will permit the 
                large majority of ongoing and planned 
                experiments and isotope production to be 
                conducted in the reactor without a large 
                percentage increase in the total cost of 
                operating the reactor; and
          (4) the term ``medical isotope'' includes molybdenum-
        99, iodine-131, xenon-133, and other radioactive 
        materials used to produce a radiopharmaceutical for 
        diagnostic, therapeutic procedures or for research and 
        development.

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