89–006 

115TH CONGRESS REPORT " ! HOUSE OF REPRESENTATIVES 2d Session 115–1056 

ADVANCED NUCLEAR FUEL AVAILABILITY ACT 

NOVEMBER 29, 2018.—Committed to the Committee of the Whole House on the 

State of the Union and ordered to be printed 

Mr. WALDEN, from the Committee on Energy and Commerce, 

submitted the following 

R E P O R T 

[To accompany H.R. 6140] 

[Including cost estimate of the Congressional Budget Office] 

The Committee on Energy and Commerce, to whom was referred 

the bill (H.R. 6140) to require the Secretary of Energy to establish 

and carry out a program to support the availability of HA–LEU for 

domestic commercial use, and for other purposes, having considered the same, report favorably thereon with an amendment and 

recommend that the bill as amended do pass. 

CONTENTS 

Page 

Purpose and Summary ............................................................................................ 3 

Background and Need for Legislation .................................................................... 3 

Committee Action .................................................................................................... 6 

Oversight Findings and Recommendations ........................................................... 7 

New Budget Authority, Entitlement Authority, and Tax Expenditures ............. 7 

Congressional Budget Office Estimate ................................................................... 7 

Federal Mandates Statement ................................................................................. 11 

Statement of General Performance Goals and Objectives .................................... 11 

Duplication of Federal Programs ............................................................................ 11 

Committee Cost Estimate ....................................................................................... 11 

Earmark, Limited Tax Benefits, and Limited Tariff Benefits ............................. 12 

Disclosure of Directed Rule Makings ..................................................................... 12 

Advisory Committee Statement .............................................................................. 12 

Applicability to Legislative Branch ........................................................................ 12 

Section-by-Section Analysis of the Legislation ...................................................... 12 

Changes in Existing Law Made by the Bill, as Reported ..................................... 13 

The amendment is as follows: 

Strike all after the enacting clause and insert the following: 

SECTION 1. SHORT TITLE. 

This Act may be cited as the ‘‘Advanced Nuclear Fuel Availability Act’’. 

2 

SEC. 2. PROGRAM. 

(a) ESTABLISHMENT.—The Secretary shall establish and carry out, through the Office of Nuclear Energy, a program to support the availability of HA–LEU for domestic commercial use. 

(b) PROGRAM ELEMENTS.—In carrying out the program under subsection (a), the 

Secretary— 

(1) may provide financial assistance to assist commercial entities to design 

and license transportation packages for HA–LEU, including canisters for metal, 

gas, and other HA–LEU compositions; 

(2) shall, to the extent practicable— 

(A) by January 1, 2021, have commercial entities submit such transportation package designs to the Commission for certification by the Commission under part 71 of title 10, Code of Federal Regulations; and 

(B) encourage the Commission to have such transportation package designs so certified by the Commission by January 1, 2023; 

(3) not later than January 1, 2020, shall submit to Congress a report on the 

Department’s uranium inventory that may be available to be processed to HA– 

LEU for purposes of such program, which may not include any uranium allocated by the Secretary for use in support of the atomic energy defense activities 

of the National Nuclear Security Administration; 

(4) not later than one year after the date of enactment of this Act, and biennially thereafter through September 30, 2025, shall conduct a survey of stakeholders to estimate the quantity of HA–LEU necessary for domestic commercial 

use for each of the five subsequent years; 

(5) shall assess options available for the Secretary to acquire HA–LEU for 

such program, including an assessment, for each such option, of the cost and 

amount of time required; 

(6) shall establish a consortium, which may include entities involved in any 

stage of the nuclear fuel cycle, to partner with the Department to support the 

availability of HA–LEU for domestic commercial use, including by— 

(A) providing information to the Secretary for purposes of surveys conducted under paragraph (4); and 

(B) purchasing HA–LEU made available to members of the consortium by 

the Secretary under the program; 

(7) shall, prior to acquiring HA–LEU under paragraph (8), in coordination 

with the consortium established pursuant to paragraph (6), develop a schedule 

for cost recovery of HA–LEU made available to members of the consortium pursuant to paragraph (8); 

(8) may, beginning not later than 3 years after the establishment of a consortium under paragraph (6), acquire HA–LEU, in order, to the extent practicable, 

to make such HA–LEU available to members of the consortium beginning not 

later than January 1, 2025, in amounts that are consistent, to the extent practicable, with the quantities estimated under the surveys conducted under paragraph (4); and 

(9) shall develop, in consultation with the Commission, criticality benchmark 

data to assist the Commission in— 

(A) the licensing and regulation of category II spent nuclear material fuel 

fabrication and enrichment facilities under part 70 of title 10, Code of Federal Regulations; and 

(B) certification of transportation packages under part 71 of title 10, Code 

of Federal Regulations. 

(c) APPLICABILITY OF USEC PRIVATIZATION ACT.—The requirements of subparagraphs (A) and (C) of section 3112(d)(2) of the USEC Privatization Act (42 U.S.C. 

2297h–10(d)(2)) shall apply to a sale or transfer of HA–LEU by the Secretary to a 

member of the consortium under this section. 

(d) FUNDING FOR TRANSPORTATION PACKAGE DESIGN.— 

(1) COST SHARE.—The Secretary shall ensure that not less than 20 percent 

of the costs of design and license activities carried out pursuant to subsection 

(b)(1) are paid by a non-Federal entity. 

(2) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to be appropriated to carry out subsection (b)(1)— 

(A) $1,500,000 for fiscal year 2019; 

(B) $1,500,000 for fiscal year 2020; and 

(C) $1,500,000 for fiscal year 2021. 

(e) SUNSET.—The authority of the Secretary to carry out the program under this 

section shall expire on September 30, 2033. 

3 

SEC. 3. REPORT TO CONGRESS. 

Not later than 12 months after the date of enactment of this Act, the Commission 

shall submit to Congress a report that includes— 

(1) identification of updates to regulations, certifications, and other regulatory 

policies that the Commission determines are necessary in order for HA–LEU to 

be commercially available, including— 

(A) guidance for material control and accountability of category II special 

nuclear material; 

(B) certifications relating to transportation packaging for HA–LEU; and 

(C) licensing of enrichment, conversion, and fuel fabrication facilities for 

HA–LEU, and associated physical security plans for such facilities; 

(2) a description of such updates; and 

(3) a timeline to complete such updates. 

SEC. 4. DEFINITIONS. 

In this Act: 

(1) COMMISSION.—The term ‘‘Commission’’ means the Nuclear Regulatory 

Commission. 

(2) DEPARTMENT.—The term ‘‘Department’’ means Department of Energy. 

(3) HA–LEU.—The term ‘‘HA–LEU’’ means high-assay low-enriched uranium. 

(4) HIGH-ASSAY LOW-ENRICHED URANIUM.—The term ‘‘high-assay low-enriched 

uranium’’ means uranium having an assay greater than 5.0 percent and less 

than 20.0 percent enrichment of the uranium-235 isotope. 

(5) SECRETARY.—The term ‘‘Secretary’’ means the Secretary of Energy. 

PURPOSE AND SUMMARY

H.R. 6140 was introduced on June 19, 2018, by Rep. Bill Flores 

(R–TX) with Rep. Jerry McNerney (D–CA). The legislation addresses the need to develop and deploy advanced nuclear fuel, known as 

high-assay low-enriched uranium (HA–LEU), for commercial use. 

BACKGROUND AND NEED FOR LEGISLATION

The current fleet of commercial operating nuclear power plants 

were the extension of policy and technology choices that emerged 

during the development of the United States’ nuclear industry and 

naval nuclear propulsion programs. Admiral Hyman Rickover’s selection of a light-water reactor (LWR) design for use as naval propulsion translated to a nuclear infrastructure supply chain that 

supported the commercial deployment of large LWR technologies. 

LWR designs use uranium enriched below five percent for sustained nuclear reactions, which produces heat to generate electricity. The reactors are designed to provide constant output, or 

baseload electricity, with little flexibility to adjust output. The reactors range in electric output from 550 megawatts to over 1,000 

megawatts. 

A number of private companies are currently pursuing advanced 

nuclear reactor designs. Many of the designs may provide a smaller 

and more versatile electric output, ‘‘load-following’’ capabilities, or 

co-generation benefits, such as excess heat for industrial purposes. 

To maximize reactor performance, the advanced reactor designs 

would utilize uranium-235 isotopes (U–235) enriched at levels 

greater than five percent and less than 20 percent. This material, 

known as high-assay low-enriched uranium, differs from the LEU 

utilized in the fleet of existing commercial nuclear power plants. 

Challenges associated with advanced nuclear technologies 

A recent survey of companies working to develop new technologies identified HA–LEU as the most significant issue to adVerDate Sep 11 2014 05:27 Dec 07, 2018 Jkt 089006 PO 00000 Frm 00003 Fmt 6659 Sfmt 6602 E:\HR\OC\HR1056.XXX HR1056
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1 Nuclear Energy Institute, ‘‘Addressing the Challenges with Establishing the Infrastructure 

for the front end of the Fuel Cycle for Advanced Reactors,’’ Jan. 2018. 2 10 CFR § 70.1–70.2 

3 10 CFR § 70.4. 

4To upgrade one of the existing Category 3 facilities to a Category 2 facility, the operator 

would have to file a license modification application with the NRC, which must contain the basis 

for the changes as well as a detailed description of how the change would affect safety of the 

workers, the public, and the environment. Upon approval, Category 2 facilities are subject to 

considerably more stringent reporting and security requirements, as well as a different fee 

structure. 5Government Accountability Office, ‘‘Nuclear Weapons NNSA Should Clarify Long-Term Uranium Enrichment Mission Needs and Improve Technology Cost Estimates,’’ GAO–18–126. February 2018. 

dress.1 To ensure that HA–LEU is commercially available for the 

initial deployment of advanced reactors, commercial vendors, the 

Nuclear Regulatory Commission (NRC), and the Department of Energy (DOE) will have to complete a series of actions to build a supply chain. These include procuring and enriching uranium to the 

necessary levels, designing and securing NRC certification of transportation packages, and making necessary changes to licenses 

issued to fuel fabrication and commercial enrichment facilities. 

The Atomic Energy Act (AEA), the primary statute governing 

peaceful use of atomic energy technology, defines enriched uranium 

as Special Nuclear Material (SNM). Any person receiving, possessing, using, or transferring SNM must have a license, with different licenses required depending on the enrichment level.2 Per 

NRC regulations, SNM is separated into three categories: Category 

1, which encompasses U–235 enriched greater than 20 percent, 

uranium-233, and plutonium; Category 2, which covers U–235 enriched between 10 percent and 20 percent; and Category 3, which 

includes U–235 enriched up to 10 percent.3 Under these guidelines, 

HA–LEU would necessitate a Category 2 SNM facility, but at 

present, the only operating commercial fuel fabrication facilities 

are licensed for Category 3. Upgrading a facility to Category 2 presents a major regulatory challenge to the wider use of this fuel.4

Legislative provisions and purpose 

H.R. 6140 provides a direct path to align advanced nuclear fuel 

supply with initial demand for the deployment of next generation 

nuclear technologies. The program authorized by the legislation addresses targeted challenges that are most critical and urgent to 

provide timely HA–LEU development. 

The nation’s sole NRC-licensed enrichment facility is currently 

operated by Urenco, USA and located in Eunice, New Mexico. In 

testimony to the Subcommittee on Energy on May 22, 2018, 

Mellissa Mann, the President of Urenco, USA, noted that with adequate investment certainty and predictability with associated regulatory steps, Urenco’s facility could be developed to enrich uranium 

to the necessary levels to manufacture HA–LEU. 

The Committee is aware of long-term needs for a domestic-owned 

enrichment facility for atomic energy defense purposes. The National Nuclear Security Administration (NNSA) states that DOE 

currently has adequate uranium for Naval Reactor Program needs 

until 2060.5 NNSA has also entered into a Memorandum of Understanding (MOU) with the Tennessee Valley Authority to downblend HEU in support of national security missions. The MOU will 

extend the deadline to provide new enrichment needs for national 

security needs by nearly a decade. While NNSA considers its enVerDate Sep 11 2014 05:27 Dec 07, 2018 Jkt 089006 PO 00000 Frm 00004 Fmt 6659 Sfmt 6602 E:\HR\OC\HR1056.XXX HR1056
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richment capability needs, GAO found that NNSA must better define enrichment needs and associated cost estimates. The Congressional defense committees will continue to monitor enrichment 

needs to meet national security missions. 

It is not the intent of the Committee for HA–LEU needs to artificially support or justify reconstituting enrichment capabilities for 

defense programs, as those needs require a much longer timeframe 

than what H.R. 6140 will address. 

Transportation packages are currently certified to move small 

quantities of HA–LEU used for research reactors, but the Committee recognizes the quantity of HA–LEU for commercial use will 

need larger, more economical packaging. Subsection 2(a) and (b) of 

H.R. 6140 will provide a discreet level of funding to develop HA– 

LEU transportation packages. 

DOE maintains an inventory of uranium that supports the Department’s broad missions. H.R. 6140 requires the Secretary to assess DOE’s inventory to determine what material may be available 

to support commercial HA–LEU deployment. Uranium that is allocated to atomic energy defense programs shall not be considered to 

support commercial needs, due to the obligations to provide for 

long-term national defense activities. 

To assist private entities to secure HA–LEU nuclear fuel, DOE 

is directed to establish a public-private partnership as a consortium. The consortium will capture economies of scale to reduce 

pricing, while still assuring private entities develop a robust HA– 

LEU market to establish a long-term supply chain. 

The consortium allows advanced nuclear development companies 

to aggregate demand, which will provide investment certainty for 

the nuclear supply chain including uranium production, conversion, 

enrichment, and fuel fabrication. Due to stringent materials management controls imposed through the AEA, DOE’s participation 

should provide the benefit of uranium management expertise in the 

Department, as well as the National Laboratory system. For example, DOE has scientific infrastructure to gather scientific data, 

known as criticality benchmark data, to validate NRC’s regulations 

to predict potential safety issues. 

To align supply and demand, DOE is required to conduct biennial surveys through 2025 to project fuel demand, which will then 

be used to inform front-end industrial needs. It is the Committee’s 

intent that information to meet the required Department’s survey 

will be collected in a manner that protects proprietary business information. By requiring DOE to conduct a biennial survey, the 

Committee intends for the Department only to facilitate the acquisition of material to meet demand and reduce the potential for 

oversupply. In the event that HA–LEU is acquired in excess of 

commercial needs, the Department may have the option to purchase the material at cost for its own research and programmatic 

needs, including use for medical isotope production, and in doing 

so extend the timeframe for DOE to rebuild its uranium inventory. 

However, it is the Committee’s intent that the primary purpose of 

the program authorized by H.R. 6140 is to support commercial use. 

It is also the Committee’s intent that the program authorized for 

HA–LEU will not become a permanent DOE program. Subsection 

2(e) of the legislation sunsets the Secretary’s authority for this program in 2033. The Committee believes 15 years provides an approVerDate Sep 11 2014 05:27 Dec 07, 2018 Jkt 089006 PO 00000 Frm 00005 Fmt 6659 Sfmt 6602 E:\HR\OC\HR1056.XXX HR1056
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priate opportunity for first-of-a-kind nuclear technologies to be deployed while the HA–LEU infrastructure is established and matured to fully support commercial demand. 

The legislation requires that any HA–LEU made available to 

consortium members for commercial use recover the cost of such 

material. The Committee recognizes the financial, logistics, and 

regulatory challenges associated with developing and managing radioactive material. The intent of the legislation is to reduce the 

overall cost burden associated with developing a new supply chain, 

not to have the Department subsidize the material. 

During the Committee’s markup of the legislation, H.R. 6140 was 

amended to clarify that HA–LEU would only be transferred at fair 

market value, as required by the USEC Privatization Act. Nuclear 

fuel made available under the program will not necessitate a Secretarial determination regarding market impacts that apply to the 

Department’s existing uranium inventory because the HA–LEU 

could be acquired by DOE for the sole purpose of supporting market development. Such Secretarial determinations are time consuming and would result in a cumbersome program, thereby limiting the efficiency of the HA–LEU program. 

Many steps must be initiated concurrently to successfully provide 

HA–LEU in the timeframe necessary for first movers. For example, 

the NRC’s regulatory requirements applicable to physical security 

and material accountability for Category 2 facilities may require an 

analysis due to the lack of existing licensed Category 2 facilities. 

The report required under section 3 of H.R. 6140 does not prejudge 

what regulations, certifications, or policies may need to be updated; 

however, the report should be comprehensive to provide certainty 

for fuel cycle facility licensees and associated nuclear supplier companies. Established regulations must be predictable and adequate 

for long-term private sector investment. 

COMMITTEE ACTION

On May 22, 2018, the Subcommittee on Energy held a hearing 

on H.R. 6140. The Subcommittee received testimony from: 

• Brent Park, Deputy Administrator for Defense Nuclear 

Nonproliferation, National Nuclear Security Administration, 

Department of Energy; 

• Ed McGinnis, Principal Deputy Assistant Secretary, Office 

of Nuclear Energy, Department of Energy; 

• Jeffrey S. Merrifield, Partner, Pillsbury Winthrop Shaw 

Pittman LLP; Advisor, ClearPath Foundation; 

• Melissa Mann, President, URENCO USA, Inc.; Member, 

U.S. Nuclear Industry Council; 

• Nick Irvin, Director, Research and Development for Strategy and Advanced Nuclear Technology, Southern Company; 

Member, Advanced Reactor Working Group, Nuclear Energy 

Institute; and, 

• Edwin Lyman, Senior Scientist, Global Security Program, 

Union of Concerned Scientists. 

On June 21, 2018, the Subcommittee on Energy met in open 

markup session and forwarded H.R. 6140, without amendment, to 

the full Committee by a voice vote. On July 12, 2018, the full Committee on Energy and Commerce met in open markup session and 

7 

ordered H.R. 6140, as amended, favorably reported to the House by 

a voice vote. 

OVERSIGHT FINDINGS AND RECOMMENDATIONS

Pursuant to clause 2(b)(1) of rule X and clause 3(c)(1) of rule 

XIII, the Committee held a hearing and made findings that are reflected in this report. 

NEW BUDGET AUTHORITY, ENTITLEMENT AUTHORITY, AND TAX

EXPENDITURES

Pursuant to clause 3(c)(2) of rule XIII, the Committee finds that 

H.R. 6140 would result in no new or increased budget authority, 

entitlement authority, or tax expenditures or revenues. 

CONGRESSIONAL BUDGET OFFICE ESTIMATE

Pursuant to clause 3(c)(3) of rule XIII, the following is the cost 

estimate provided by the Congressional Budget Office pursuant to 

section 402 of the Congressional Budget Act of 1974: 

U.S. CONGRESS, 

CONGRESSIONAL BUDGET OFFICE, 

Washington, DC, November 28, 2018. 

Hon. GREG WALDEN, 

Chairman, Committee on Energy and Commerce, 

House of Representatives, Washington, DC. 

DEAR MR. CHAIRMAN: The Congressional Budget Office has prepared the enclosed cost estimate for H.R. 6140, the Advanced Nuclear Fuel Availability Act. 

If you wish further details on this estimate, we will be pleased 

to provide them. The CBO staff contact is Kathleen Gramp. 

Sincerely, 

KEITH HALL, Director. 

Enclosure. 

H.R. 6140—Advanced Nuclear Fuel Availability Act 

Summary: H.R. 6140 would direct the Department of Energy 

(DOE) to conduct various studies and activities related to the supply of new types of fuels for commercial nuclear reactors. In particular, the bill would authorize DOE to acquire certain materials 

on behalf of other entities and to develop a schedule for recovering 

those costs. Other provisions in the bill would authorize the appropriation of $1.5 million for each of fiscal years 2019 through 2021 

to assist in the development of new methods for transporting new 

nuclear materials. Finally, DOE’s authority to implement the programs would expire at the end of 2033. 

CBO estimates that implementing H.R. 6140 would increase net direct spending by $120 million over the 2019–2028 period as a result of provisions authorizing DOE to purchase materials. CBO estimates, however, that this net cost would be offset in subsequent 

years by income from commercial sales of the material. In addition, 

CBO estimates that the programmatic costs associated with implementing the bill would total $20 million over the 2019–2023 period, 

assuming appropriation of the authorized amounts. 

8 

Because enacting H.R. 6140 would affect direct spending, pay-asyou-go procedures apply. The bill would not affect revenues. 

CBO estimates that enacting H.R. 6140 would not increase net direct spending or on-budget deficits by more than $5 billion in any 

of the four consecutive 10-year periods beginning in 2029. 

H.R. 6140 contains no intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act (UMRA). 

Estimated cost to the Federal Government: The estimated budgetary effect of H.R. 6140 is shown in the following table. The costs 

of the legislation fall within budget function 270 (energy). 

By fiscal year, in millions of dollars— 

2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2019– 

2023 

2019– 

2028 

INCREASES IN DIRECT SPENDING 

Acquisition Costs: 

Estimated Budget Authority ......... 0 0 150 0 0 0 1 5 5 5 150 166 

Estimated Outlays ........................ 0 0 8 15 45 45 38 5 5 5 68 166 

Cost Recovery Fees: 

Estimated Budget Authority ......... 0 0 0 0 0 0 ¥1 ¥9 ¥18 ¥18 0 ¥46 

Estimated Outlays ........................ 0 0 0 0 0 0 ¥1 ¥9 ¥18 ¥18 0 ¥46 

Total Direct Spending: 

Estimated Budget Authority 0 0 150 0 0 0 0 ¥4 ¥13 ¥13 150 120 

Estimated Outlays ............... 0 0 8 15 45 45 37 ¥4 ¥13 ¥13 68 120 

INCREASES IN SPENDING SUBJECT TO APPROPRIATION 

Estimated Authorization Level ............... 2 4 6 6 5 5 5 5 5 5 23 48 

Estimated Outlays ................................. * 3 5 7 5 5 5 5 5 5 20 45 

* = between zero and $500,000. 

Basis of estimate: For this estimate, CBO assumes that the legislation will be enacted near the start of 2019. 

CBO estimates that implementing purchase agreements authorized by H.R. 6140 would increase net direct spending by $120 million over the 2019–2028 period, reflecting gross capital and operating costs of $166 million and offsetting receipts from recoveries 

of $46 million. CBO estimates that the net costs incurred through 

2028 would be offset in subsequent years by income from sales of 

the materials. In addition, CBO estimates that implementing the 

bill would cost $20 million over the 2019–2023 period, assuming 

appropriation of the authorized and necessary amounts. 

Direct spending 

H.R. 6140 would authorize DOE to acquire high-assay, low-enriched uranium (HALEU) for new commercial uses. DOE would be 

directed to establish a consortium of entities involved in the nuclear fuel cycle to assess the potential supply and demand for such 

materials and to develop a schedule for recovering any acquisition 

costs that the department incurs. Under the bill, DOE would be expressly prohibited from including materials allocated for defense 

purposes in its assessment of available supplies. Because the legislation does not expressly make those transactions subject to further 

appropriation, CBO views the acquisition authority as a form of direct spending. 

Background on HA–LEU. Producing fuels for nuclear reactors involves a multistep process to turn uranium ore into a form that can 

be used to generate electricity. Historically, electric utilities have 

purchased the raw materials and then entered into contracts with 

9 

1DOE produces small quantities of HA–LEU for research and medical purposes by modifying 

materials in defense stockpiles, but most of the stockpiled materials available for civilian uses 

are projected to be used by 2030. Although some foreign entities also produce materials that 

could be imported for use by commercial users, such imports would require specialized licenses, 

transportation systems, and marketing arrangements. For more information, see Massachusetts 

Institute of Technology, The Future of Nuclear Energy in a Carbon-Constrained World: An Interdisciplinary MIT Study (2018), p. 88, http://tinyurl.com/ycdxnugt. 2See Nuclear Energy Institute, letter to Secretary Rick Perry on the Need for High-Assay 

Low-Enriched Uranium (July 5, 2018), http://tinyurl.com/yaqvkwoc. 

domestic or foreign companies to increase—or enrich—the concentration of uranium isotope from less than 1 percent to up to 3 

percent to 5 percent. Such materials are known as low-enriched 

uranium (LEU). Most enrichment services are purchased under 

long-term contracts. 

According to academic and industry experts, most new technologies for advanced nuclear reactors will require uranium with 

higher concentrations of uranium isotopes, ranging from over 6 percent to nearly 20 percent. In addition, some have proposed using 

such materials—known as high-assay LEU, or HA–LEU—for new 

types of fuel for conventional nuclear power plants. At this time, 

however, there are no large commercial sources of HA–LEU anywhere in the world.1

Private companies have been reluctant to invest in new enrichment facilities for HA–LEU because of uncertainty surrounding the 

technical and economic viability of new nuclear technologies. A recent industry assessment suggests that the annual demand for 

HA–LEU in the 2020s could range from less than 5 metric tons to 

more than 100 metric tons a year—the equivalent of less than 1 

percent to 5 percent, respectively, of the current demand for conventional LEU.2 In addition, the timing of any sales will depend on 

the availability of new shipping containers and fuel fabrication facilities, which may take several years to design and build. 

Estimated Budgetary Effects of the Bill. H.R. 6140 would direct 

DOE to make HA–LEU available, to the extent practical, for commercial uses by the end of 2025. CBO anticipates that DOE would 

acquire the materials by making commitments to purchase HA– 

LEU that would be produced in the future. Assuming those agreements follow standard industry practice, CBO expects that the 

value of DOE’s purchases would cover the capital cost of the new 

production facilities as well as the operating costs incurred during 

the first 8 to 10 years of production. For this estimate, CBO assumes DOE would minimize the net cost of the HA–LEU by reimbursing the enrichers’ construction and operating costs as they are 

incurred. 

The cost of implementing H.R. 6140 would depend on the type 

and scale of enrichment services purchased by DOE. Based on information from industry experts and historical trends in enrichment prices and costs, CBO estimates that DOE would spend between $100 million and $200 million for new enrichment capacity 

for HA–LEU, with a midpoint of $150 million. That estimated cost 

reflects CBO’s expectation that DOE would require buyers to provide raw materials in the form of LEU and that DOE would purchase the minimum quantities necessary for testing and demonstrating new nuclear reactor and fuel technologies, which could 

range from a few metric tons to over 10 metric tons per year. 

Using information from industry studies, CBO estimates that 

most of the construction-related outlays would occur by 2026, asVerDate Sep 11 2014 05:27 Dec 07, 2018 Jkt 089006 PO 00000 Frm 00009 Fmt 6659 Sfmt 6602 E:\HR\OC\HR1056.XXX HR1056
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3For more information, see Nuclear Energy Institute, Addressing the Challenges with Establishing the Infrastructure for the front-end of the Fuel Cycle for Advanced Reactors, NEI White 

Paper (January 2018), http://tinyurl.com/ydamptz6 (PDF, 504 KB). 

suming that developers receive the necessary regulatory and marketing approvals in the next few years.3 Once the facilities are 

operational, CBO estimates, DOE would spend another $5 million 

a year for operating expenses, or a total of $16 million over the 

2019–2028 period. CBO estimates that DOE would recover about 

one-quarter of the capital costs and two-thirds of the operating 

costs by 2028, resulting in receipts totaling $46 million over the 10- 

year period. 

Spending subject to appropriation 

CBO estimates that implementing H.R. 6140 would cost $20 million over the 2019–2023 period, assuming appropriation of the authorized amounts. That total includes the $4.5 million specifically 

authorized for DOE to assist in the design and licensing of transportation systems needed to transport HA–LEU and related materials. 

CBO also estimates that DOE would spend about $16 million 

over the 2019–2023 period to operate the consortium and implement agreements to acquire HA–LEU and to sell it to commercial 

users. For this estimate, CBO assumes that DOE would review and 

execute about 10 contracts under the acquisition program and that 

the administrative costs of processing and servicing those agreements would be similar to the costs incurred by DOE in processing 

applications for loans and loan guarantees. 

In addition, CBO expects that implementing H.R. 6140 could affect the workload of the Nuclear Regulatory Commission (NRC), 

which licenses and regulates civilian facilities that use radioactive 

materials. In particular, that agency would be heavily involved in 

the design and licensing of facilities and transportation containers 

required to develop a commercial supply of HA–LEU. To the extent 

that the legislation results in an overall increase or acceleration of 

such activities, the bill could increase the NRC’s costs, which are 

subject to appropriation. However, because the NRC is required 

under current law to offset most of its funding through fees 

charged to entities it regulates, CBO estimates that any net 

changes in the agency’s spending under the bill would not exceed 

$500,000 in any year. 

Uncertainty: CBO aims to produce cost estimates that generally 

reflect the middle of a range of the most likely budgetary outcomes 

that would result if the legislation was enacted. In estimating the 

effects of H.R. 6140, CBO had to account for several sources of uncertainty: 

• CBO does not know the quantity or price of the HA–LEU 

that DOE would acquire to implement the bill. Spending could 

be higher or lower than the estimated amounts depending on 

the size of the commercial market for HA–LEU, DOE’s role in 

meeting the needs of that market, and the cost of supplying 

those materials. 

• CBO cannot determine the form or terms of the contractual arrangements that DOE would use to acquire materials 

under the bill. Costs also could differ if DOE chose to purchase 

materials from Russia or another foreign entity. 

11 

• CBO cannot predict the amount or timing of collections 

from fees paid by private entities for the use of the fuel. Advanced nuclear reactor projects face technological and market 

risks, which could affect the timing and amount of their purchases or payments. 

Pay-As-You-Go considerations: The Statutory Pay-As-You-Go Act 

of 2010 establishes budget-reporting and enforcement procedures 

for legislation affecting direct spending or revenues. The net 

changes in outlays that are subject to those pay-as-you-go procedures are shown in the following table. 

CBO ESTIMATE OF PAY-AS-YOU-GO EFFECTS FOR H.R. 6140, THE ADVANCED NUCLEAR FUEL 

AVAILABILITY ACT, AS ORDERED REPORTED BY THE HOUSE COMMITTEE ON ENERGY AND COMMERCE ON JULY 12, 2018 

By fiscal year, in millions of dollars— 

2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2019– 

2023 

2019– 

2028 

NET INCREASE IN THE DEFICIT 

Statutory Pay-As-You-Go Effect ........... 0 0 8 15 45 45 37 ¥4 ¥13 ¥13 68 120 

Increase in long-term direct spending and deficits: CBO estimates that enacting H.R. 6140 would not increase net direct spending or on-budget deficits by more than $5 billion in any of the four 

consecutive 10-year periods beginning in 2029. 

Mandates: H.R. 6140 contains no intergovernmental or privatesector mandates as defined in UMRA. 

Estimate prepared by: Federal costs: Megan Carroll and Kathleen Gramp; Mandates: Jon Sperl. 

Estimate reviewed by: Kim P. Cawley, Chief, Natural and Physical Resources Cost Estimates Unit; H. Samuel Papenfuss, Deputy 

Assistant Director for Budget Analysis. 

FEDERAL MANDATES STATEMENT

The Committee adopts as its own the estimate of Federal mandates prepared by the Director of the Congressional Budget Office 

pursuant to section 423 of the Unfunded Mandates Reform Act. 

STATEMENT OF GENERAL PERFORMANCE GOALS AND OBJECTIVES

Pursuant to clause 3(c)(4) of rule XIII, the general performance 

goal or objective of this legislation is to make high-assay low-enriched uranium nuclear fuel available for commercial use in advanced nuclear reactor technologies. 

DUPLICATION OF FEDERAL PROGRAMS

Pursuant to clause 3(c)(5) of rule XIII, no provision of H.R. 6140 

is known to be duplicative of another Federal program, including 

any program that was included in a report to Congress pursuant 

to section 21 of Public Law 111–139 or the most recent Catalog of 

Federal Domestic Assistance. 

COMMITTEE COST ESTIMATE

Pursuant to clause 3(d)(1) of rule XIII, the Committee adopts as 

its own the cost estimate prepared by the Director of the CongresVerDate Sep 11 2014 05:27 Dec 07, 2018 Jkt 089006 PO 00000 Frm 00011 Fmt 6659 Sfmt 6602 E:\HR\OC\HR1056.XXX HR1056
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sional Budget Office pursuant to section 402 of the Congressional 

Budget Act of 1974. 

EARMARK, LIMITED TAX BENEFITS, AND LIMITED TARIFF BENEFITS

Pursuant to clause 9(e), 9(f), and 9(g) of rule XXI, the Committee 

finds that H.R. 6140 contains no earmarks, limited tax benefits, or 

limited tariff benefits. 

DISCLOSURE OF DIRECTED RULE MAKINGS

Pursuant to section 3(i) of H. Res. 5, the Committee finds that 

H.R. 6140 contains no directed rule makings. 

ADVISORY COMMITTEE STATEMENT

No advisory committees within the meaning of section 5(b) of the 

Federal Advisory Committee Act were created by this legislation. 

APPLICABILITY TO LEGISLATIVE BRANCH

The Committee finds that the legislation does not relate to the 

terms and conditions of employment or access to public services or 

accommodations within the meaning of section 102(b)(3) of the Congressional Accountability Act. 

SECTION-BY-SECTION ANALYSIS OF THE LEGISLATION

Section 1. Short title 

This section provides the short title of ‘‘Advanced Nuclear Fuel 

Availability Act.’’ 

Section 2. Program 

This section requires the Secretary of Energy to establish and 

carry out, through the Office of Nuclear Energy, a program to support the availability of high-assay low-enriched uranium, or HA– 

LEU, for domestic commercial use, and establishes several HA– 

LEU program elements 

Section 2(b) establishes the HA–LEU program elements which 

(1) provide financial assistance to design and license transportation 

packages for HA–LEU; (2) have such designs submitted to the NRC 

for certification by January 1, 2021 and encourage the Commission 

to have such designs certified by January 1, 2023; (3) report on 

DOE’s uranium inventory that may be processed to HA–LEU not 

later than January 1, 2020; (4) conduct a periodic survey to estimate quantities necessary for domestic commercial use of HA– 

LEU; (5) assess options to acquire HA–LEU, including cost and 

time required for each option assessed; (6) establish a consortium, 

which may include representatives of companies involved in any 

stage of the nuclear fuel cycle, to partner with DOE to support the 

availability of HA–LEU for domestic commercial use, including by 

providing information for the surveys and purchasing HA–LEU 

made available by the Secretary; (7) develop a cost recovery schedule for HA–LEU made available to members of the consortium; (8) 

make HA–LEU available to members of the consortium beginning 

not later than January 1, 2025, consistent with quantities estimated under the surveys; and, (9) develop criticality benchmark 

data to assist the Commission in licensing and regulation of nuclear facilities and certification of transportation packages. 

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Section 2(c) makes subparagraphs (A) and (C) of section 

3112(d)(2) of the USEC Privatization Act applicable to transfers of 

HA–LEU for commercial use. 

Section 2(d) requires financial assistance agreements under section 2(b)(1) for the design and licensing of transportation packages 

to have a minimum of a twenty percent cost share and authorizes 

$1,500,000 for each of the fiscal years 2019 through 2021. 

Section 2(e) sunsets the program on September 30, 2033. 

Section 3. Report to Congress 

Section 3 requires the NRC to submit a report to Congress not 

later than 12 months from the date of enactment of the Act that 

identifies updates to regulations, certifications, and other regulatory policies that the Commission determines are necessary in 

order for HA–LEU to be commercially available, including guidance 

for material control and accountability of Category 2 special nuclear material, certifications relating to transportation packaging, 

and licensing of enrichment, conversion, and fuel fabrication facilities for HA–LEU and associated physical security plans for such facilities, with a description of such updates and timeline to complete 

such updates. 

Section 4. Definitions 

Section 4 defines the terms ‘‘Commission’’; ‘‘Department’’; ‘‘HA– 

LEU’’; ‘‘high-assay low-enriched uranium’’; and ‘‘Secretary.’’ 

CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

This legislation does not amend any existing Federal statute. 

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