79–006 

115TH CONGRESS REPORT " ! HOUSE OF REPRESENTATIVES 2d Session 115–924 

NUCLEAR UTILIZATION OF KEYNOTE ENERGY ACT 

SEPTEMBER 7, 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. 1320] 

[Including cost estimate of the Congressional Budget Office] 

The Committee on Energy and Commerce, to whom was referred 

the bill (H.R. 1320) to amend the Omnibus Budget Reconciliation 

Act of 1990 related to Nuclear Regulatory Commission user fees 

and annual charges, 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 ............................................................................................ 6 

Background and Need for Legislation .................................................................... 7 

Committee Action .................................................................................................... 10 

Committee Votes ...................................................................................................... 10 

Oversight Findings and Recommendations ........................................................... 11 

New Budget Authority, Entitlement Authority, and Tax Expenditures ............. 11 

Congressional Budget Office Estimate ................................................................... 11 

Federal Mandates Statement ................................................................................. 14 

Statement of General Performance Goals and Objectives .................................... 14 

Duplication of Federal Programs ............................................................................ 14 

Committee Cost Estimate ....................................................................................... 14 

Earmark, Limited Tax Benefits, and Limited Tariff Benefits ............................. 14 

Disclosure of Directed Rule Makings ..................................................................... 14 

Advisory Committee Statement .............................................................................. 14 

Applicability to Legislative Branch ........................................................................ 14 

Section-by-Section Analysis of the Legislation ...................................................... 15 

Changes in Existing Law Made by the Bill, as Reported ..................................... 17 

The amendment is as follows: 

Strike all after the enacting clause and insert the following: 

2 

SECTION 1. SHORT TITLE. 

This Act may be cited as the ‘‘Nuclear Utilization of Keynote Energy Act’’. 

SEC. 2. NUCLEAR REGULATORY COMMISSION USER FEES AND ANNUAL CHARGES THROUGH 

FISCAL YEAR 2020. 

(a) IN GENERAL.—Section 6101(c)(2)(A) of the Omnibus Budget Reconciliation Act 

of 1990 (42 U.S.C. 2214(c)(2)(A)) is amended— 

(1) in clause (iii), by striking ‘‘and’’ at the end; 

(2) in clause (iv), by striking the period at the end and inserting ‘‘; and’’; and 

(3) by adding at the end the following: 

‘‘(v) amounts appropriated to the Commission for the fiscal year for 

activities related to the development of a regulatory infrastructure for 

advanced nuclear reactor technologies.’’. 

(b) REPEAL.—Effective October 1, 2020, section 6101 of the Omnibus Budget Reconciliation Act of 1990 (42 U.S.C. 2214) is repealed. 

SEC. 3. NUCLEAR REGULATORY COMMISSION USER FEES AND ANNUAL CHARGES FOR FISCAL 

YEAR 2021 AND EACH FISCAL YEAR THEREAFTER. 

(a) ANNUAL BUDGET JUSTIFICATION.— (1) IN GENERAL.—In the annual budget justification submitted by the Commission to Congress, the Commission shall expressly identify anticipated expenditures necessary for completion of the requested activities of the Commission anticipated to occur during the applicable fiscal year. 

(2) RESTRICTION.—The Commission shall, to the maximum extent practicable, 

use any funds made available to the Commission for a fiscal year for the anticipated expenditures identified under paragraph (1) for the fiscal year. 

(3) LIMITATION ON CORPORATE SUPPORT COSTS.—With respect to the annual 

budget justification submitted to Congress, corporate support costs, to the maximum extent practicable, shall not exceed the following percentages of the total 

budget authority of the Commission requested in the annual budget justification: 

(A) 30 percent for each of fiscal years 2021 and 2022. 

(B) 29 percent for each of fiscal years 2023 and 2024. 

(C) 28 percent for fiscal year 2025 and each fiscal year thereafter. 

(b) FEES AND CHARGES.— 

(1) ANNUAL ASSESSMENT.— 

(A) IN GENERAL.—Each fiscal year, the Commission shall assess and collect fees and charges in accordance with paragraphs (2) and (3) in a manner 

that ensures that, to the maximum extent practicable, the amount assessed 

and collected is equal to an amount that approximates— 

(i) the total budget authority of the Commission for that fiscal year; 

less 

(ii) the budget authority of the Commission for the activities described in subparagraph (B). 

(B) EXCLUDED ACTIVITIES DESCRIBED.—The activities referred to in subparagraph (A)(ii) are the following: 

(i) Any fee-relief activity, as identified by the Commission. 

(ii) Amounts appropriated for the fiscal year to the Commission— 

(I) from the Nuclear Waste Fund established under section 302(c) 

of the Nuclear Waste Policy Act of 1982 (42 U.S.C. 10222(c)); 

(II) for implementation of section 3116 of the Ronald W. Reagan 

National Defense Authorization Act for Fiscal Year 2005 (50 U.S.C. 

2601 note; Public Law 108 375); 

(III) for the homeland security activities of the Commission 

(other than for the costs of fingerprinting and background checks 

required under section 149 of the Atomic Energy Act of 1954 (42 

U.S.C. 2169) and the costs of conducting security inspections); 

(IV) for the Inspector General services of the Commission provided to the Defense Nuclear Facilities Safety Board; 

(V) for the partnership program with institutions of higher education established under section 244 of the Atomic Energy Act of 

1954 (42 U.S.C. 2015c); and 

(VI) for the scholarship and fellowship programs under section 

243 of the Atomic Energy Act of 1954 (42 U.S.C. 2015b). 

(iii) Costs for activities related to the development of regulatory infrastructure for advanced nuclear reactor technologies. 

(C) EXCEPTION.—The exclusion described in subparagraph (B)(iii) shall 

cease to be effective on January 1, 2032. 

(D) REPORT.—Not later than December 31, 2030, the Commission shall 

submit to the Committee on Appropriations and the Committee on EnvironVerDate Sep 11 2014 01:04 Sep 11, 2018 Jkt 079006 PO 00000 Frm 00002 Fmt 6659 Sfmt 6621 E:\HR\OC\HR924.XXX HR924
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ment and Public Works of the Senate and the Committee on Appropriations 

and the Committee on Energy and Commerce of the House of Representatives a report describing the views of the Commission on the continued appropriateness and necessity of funding for the activities described in subparagraph (B)(iii). 

(2) FEES FOR SERVICE OR THING OF VALUE.—In accordance with section 9701 

of title 31, United States Code, the Commission shall assess and collect fees 

from any person who receives a service or thing of value from the Commission 

to cover the costs to the Commission of providing the service or thing of value. 

(3) ANNUAL CHARGES.— 

(A) IN GENERAL.—Subject to subparagraph (B) and except as provided in 

subparagraph (D), the Commission may charge to any licensee or certificate 

holder of the Commission an annual charge in addition to the fees set forth 

in paragraph (2). 

(B) CAP ON ANNUAL CHARGES OF CERTAIN LICENSEES.— 

(i) OPERATING REACTORS.—The annual charge under subparagraph 

(A) charged to an operating reactor licensee, to the maximum extent 

practicable, shall not exceed the annual fee amount per operating reactor licensee established in the final rule of the Commission entitled 

‘‘Revision of Fee Schedules; Fee Recovery for Fiscal Year 2015’’ (80 Fed. 

Reg. 37432 (June 30, 2015)), as may be adjusted annually by the Commission to reflect changes in the Consumer Price Index published by 

the Bureau of Labor Statistics of the Department of Labor. 

(ii) FUEL FACILITIES.— 

(I) IN GENERAL.—The total annual charges under subparagraph 

(A) charged to fuel facility licensees, to the maximum extent practicable, shall not exceed an amount that is equal to the total annual fees collected from the fuel facilities class under the final rule 

of the Commission entitled ‘‘Revision of Fee Schedules; Fee Recovery for Fiscal Year 2016’’ (81 Fed Reg. 41171 (June 24, 2016)), 

which amount may be adjusted annually by the Commission to reflect changes in the Consumer Price Index published by the Bureau 

of Labor Statistics of the Department of Labor. 

(II) EXCEPTION.—Subclause (I) shall not apply if the number of 

licensed facilities classified by the Commission as fuel facilities exceeds seven. 

(III) CHANGES TO ANNUAL CHARGES.—Any change in an annual 

charge under subparagraph (A) charged to a fuel facility licensee 

shall be based on— 

(aa) a change in the regulatory services provided with respect to the fuel facility; or 

(bb) an adjustment described in subclause (I). 

(iii) WAIVER.—The Commission may waive, for a period of 1 year, the 

cap on annual charges described in clause (i) or (ii) if the Commission 

submits to the Committee on Appropriations and the Committee on Environment and Public Works of the Senate and the Committee on Appropriations and the Committee on Energy and Commerce of the House 

of Representatives a written determination that the cap on annual 

charges may compromise the safety and security mission of the Commission. 

(C) AMOUNT PER LICENSEE.— 

(i) IN GENERAL.—The Commission shall establish by rule a schedule 

of annual charges fairly and equitably allocating the aggregate amount 

of charges described in clause (ii) among licensees and certificate holders. 

(ii) AGGREGATE AMOUNT.—For purposes of this subparagraph, the aggregate amount of charges for a fiscal year shall equal an amount that 

approximates— 

(I) the amount to be collected under paragraph (1)(A) for the fiscal year; less 

(II) the amount of fees to be collected under paragraph (2) for the 

fiscal year. 

(iii) REQUIREMENT.—The schedule of charges under clause (i)— 

(I) to the maximum extent practicable, shall be reasonably related to the cost of providing regulatory services; and 

(II) may be based on the allocation of the resources of the Commission among licensees or certificate holders or classes of licensees or certificate holders. 

4 

(D) EXEMPTION.—Subparagraph (A) shall not apply to the holder of any 

license for a federally owned research reactor used primarily for educational 

training and academic research purposes. 

(c) PERFORMANCE AND REPORTING.— (1) IN GENERAL.—The Commission shall develop for the requested activities 

of the Commission— 

(A) performance metrics; and 

(B) milestone schedules. 

(2) DELAYS IN ISSUANCE OF FINAL SAFETY EVALUATION.—If the final safety 

evaluation for a requested activity of the Commission is not completed by the 

completion date required by the performance metrics or milestone schedule 

under paragraph (1), the Executive Director for Operations of the Commission 

shall, not later than 30 days after such required completion date, inform the 

Commission of the delay. 

(3) DELAYS IN ISSUANCE OF FINAL SAFETY EVALUATION EXCEEDING 180 DAYS.— If a final safety evaluation described in paragraph (2) is not completed by the 

date that is 180 days after the completion date required by the performance 

metrics or milestone schedule under paragraph (1), the Commission shall submit to the Committee on Environment and Public Works of the Senate and the 

Committee on Energy and Commerce of the House of Representatives a timely 

report describing the delay, including a detailed explanation accounting for the 

delay and a plan for timely completion of the final safety evaluation. 

(d) ACCURATE INVOICING.—With respect to invoices for fees charged under subsection (b)(2), the Commission shall— 

(1) ensure appropriate review and approval prior to the issuance of invoices; 

(2) develop and implement processes to audit invoices to ensure accuracy, 

transparency, and fairness; and 

(3) modify regulations to ensure fair and appropriate processes to provide licensees and applicants an opportunity to efficiently dispute or otherwise seek 

review and correction of errors in invoices for such fees. 

(e) REPORT.—Not later than September 30, 2022, the Commission shall submit to 

the Committee on Appropriations and the Committee on Environment and Public 

Works of the Senate and the Committee on Appropriations and the Committee on 

Energy and Commerce of the House of Representatives a report describing the implementation of this section, including any effects of such implementation and recommendations for improvement. 

(f) DEFINITIONS.—In this section: 

(1) ADVANCED NUCLEAR REACTOR.—The term ‘‘advanced nuclear reactor’’ 

means a nuclear fission or fusion reactor, including a prototype plant (as defined in sections 50.2 and 52.1 of title 10, Code of Federal Regulations), with 

significant improvements compared to commercial nuclear reactors under construction as of the date of enactment of this Act, including improvements such 

as— 

(A) additional inherent safety features; 

(B) significantly lower levelized cost of electricity; 

(C) lower waste yields; 

(D) greater fuel utilization; 

(E) enhanced reliability; 

(F) increased proliferation resistance; 

(G) increased thermal efficiency; or 

(H) ability to integrate into electric and nonelectric applications. 

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

Commission. 

(3) CORPORATE SUPPORT COSTS.—The term ‘‘corporate support costs’’’ means 

expenditures for acquisitions, administrative services, financial management, 

human resource management, information management, information technology, policy support, outreach, and training. 

(4) RESEARCH REACTOR.—The term ‘‘research reactor’’ means a nuclear reactor 

that— 

(A) is licensed by the Commission under section 104 c. of the Atomic Energy Act of 1954 (42 U.S.C. 2134(c)) for operation at a thermal power level 

of not more than 10 megawatts; and 

(B) if so licensed for operation at a thermal power level of more than 1 

megawatt, does not contain— 

(i) a circulating loop through the core in which the licensee conducts 

fuel experiments; 

(ii) a liquid fuel loading; or 

(iii) an experimental facility in the core in excess of 16 square inches 

in cross-section. 

5 

(5) REQUESTED ACTIVITY OF THE COMMISSION.—The term ‘‘requested activity 

of the Commission’’ means— 

(A) the processing of applications for— 

(i) design certifications or approvals; 

(ii) licenses; 

(iii) permits; 

(iv) license amendments; 

(v) license renewals; 

(vi) certificates of compliance; and 

(vii) power uprates; and 

(B) any other activity requested by a licensee or applicant. 

(g) EFFECTIVE DATE.—This section takes effect on October 1, 2020. 

SEC. 4. STUDY ON ELIMINATION OF FOREIGN LICENSING RESTRICTIONS. 

Not later than 18 months after the date of enactment of this Act, the Comptroller 

General shall transmit to Congress a report containing the results of a study on the 

feasibility and implications of repealing restrictions under sections 103 d. and 104 

d. of the Atomic Energy Act of 1954 (42 U.S.C. 2133(d); 2134(d)) on issuing licenses 

for certain nuclear facilities to an alien or an entity owned, controlled, or dominated 

by an alien, a foreign corporation, or a foreign government. 

SEC. 5. STUDY ON THE IMPACT OF THE ELIMINATION OF MANDATORY HEARING FOR 

UNCONTESTED LICENSING APPLICATIONS. 

Not later than 18 months after the date of enactment of this Act, the Comptroller 

General shall transmit to Congress a report containing the results of a study on the 

effects of eliminating the hearings required under section 189 a. of the Atomic Energy Act of 1954 (42 U.S.C. 2239(a)) for an application under section 103 or section 

104 b. of such Act for a construction permit for a facility in the absence of a request 

of any person whose interest may be affected by the proceeding. 

SEC. 6. INFORMAL HEARING PROCEDURES. 

Section 189 a. of the Atomic Energy Act of 1954 (42 U.S.C. 2239(a)) is amended 

by adding at the end the following: 

‘‘(3) The Commission may use informal adjudicatory procedures for any hearing 

required under this section for which the Commission determines that adjudicatory 

procedures under section 554 of title 5, United States Code, are unnecessary.’’. 

SEC. 7. APPLICATION REVIEWS FOR NUCLEAR ENERGY PROJECTS. 

Section 185 of the Atomic Energy Act of 1954 (42 U.S.C. 2235) is amended by adding at the end the following: 

‘‘c. APPLICATION REVIEWS FOR NUCLEAR ENERGY PROJECTS.— ‘‘(1) STREAMLINING LICENSE APPLICATION REVIEW.—With respect to an application that is docketed seeking issuance of a construction permit, operating license, or combined construction permit and operating license for a production 

or utilization facility, the Commission shall include the following procedures: 

‘‘(A) Undertake an environmental review process and issue any draft environmental impact statement to the maximum extent practicable within 24 

months after the application is accepted for docketing. 

‘‘(B) Complete the technical review process and issue any safety evaluation report and any final environmental impact statement to the maximum 

extent practicable within 42 months after the application is accepted for 

docketing. 

‘‘(2) EARLY SITE PERMIT.— ‘‘(A) SUPPLEMENTAL ENVIRONMENTAL IMPACT STATEMENT.—In a proceeding for a combined construction permit and operating license for a site 

for which an early site permit has been issued, any environmental impact 

statement prepared by the Commission and cooperating agencies shall be 

prepared as a supplement to the environmental impact statement prepared 

for the early site permit. 

‘‘(B) INCORPORATION BY REFERENCE.—The supplemental environmental 

impact statement shall— 

‘‘(i) incorporate by reference the analysis, findings, and conclusions 

from the environmental impact statement prepared for the early site 

permit; and 

‘‘(ii) include additional discussion, analyses, findings, and conclusions 

on matters resolved in the early site permit proceeding only to the extent necessary to address information that is new and significant in 

that the information would materially change the prior findings or conclusions. 

‘‘(3) PRODUCTION OR UTILIZATION FACILITY LOCATED AT AN EXISTING SITE.—In 

reviewing an application for an early site permit, construction permit, operating 

6 

license, or combined construction permit and operating license for a production 

or utilization facility located at the site of a licensed production or utilization 

facility, the Commission shall, to the extent practicable, use information that 

was part of the licensing basis of the licensed production or utilization facility. 

‘‘(4) REGULATIONS.—The Commission shall initiate a rulemaking, not later 

than 1 year after the date of enactment of the Nuclear Utilization of Keynote 

Energy Act, to amend the regulations of the Commission to implement this subsection. 

‘‘(5) ENVIRONMENTAL IMPACT STATEMENT DEFINED.—In this subsection, the 

term ‘environmental impact statement’ means a detailed statement required 

under section 102(C) of the National Environmental Policy Act of 1969 (42 

U.S.C. 4332(C)). 

‘‘(6) RELATIONSHIP TO OTHER LAW.—Nothing in this subsection exempts the 

Commission from any requirement for full compliance with section 102(2)(C) of 

the National Environmental Policy Act of 1969 (42 U.S.C. 4332(2)(C)).’’. 

SEC. 8. REPORT IDENTIFYING BEST PRACTICES FOR ESTABLISHMENT AND OPERATION OF 

LOCAL COMMUNITY ADVISORY BOARDS. 

(a) BEST PRACTICES REPORT.—Not later than 18 months after the date of enactment of this Act, the Nuclear Regulatory Commission shall submit to Congress, and 

make publicly available, a report identifying best practices with respect to the establishment and operation of a local community advisory board to foster communication 

and information exchange between a licensee planning for and involved in decommissioning activities and members of the community that decommissioning activities may affect, including lessons learned from any such board in existence before 

the date of enactment of this Act. 

(b) CONTENTS.—The report described in subsection (a) shall include— 

(1) a description of— 

(A) the topics that could be brought before a local community advisory 

board; 

(B) how such a board’s input could be used to inform the decision-making 

processes of stakeholders for various decommissioning activities; 

(C) what interaction such a board could have with the Nuclear Regulatory Commission and other Federal regulatory bodies to support the 

board members’ overall understanding of the decommissioning process and 

promote dialogue between the affected stakeholders and the licensee involved in decommissioning activities; and 

(D) how such a board could offer opportunities for public engagement 

throughout all phases of the decommissioning process; 

(2) a discussion of the composition of a local community advisory board; and 

(3) best practices relating to the establishment and operation of a local community advisory board, including— 

(A) the time of establishment of such a board; 

(B) the frequency of meetings of such a board; 

(C) the selection of board members; 

(D) the term of board members; 

(E) the responsibility for logistics required to support such a board’s 

meetings and other routine activities; and 

(F) any other best practices relating to such a local community advisory 

board that are identified by the Commission. 

(c) CONSULTATION.—In developing the report described in subsection (a), the Nuclear Regulatory Commission shall consult with any host State, any community 

within the emergency planning zone of an applicable nuclear facility, and any existing local community advisory board. 

SEC. 9. REPORT ON STUDY RECOMMENDATIONS. 

Not later than 90 days after the date of enactment of this Act, the Nuclear Regulatory Commission shall submit to Congress a report on the status of addressing 

and implementing the recommendations contained in the memorandum of the Executive Director of Operations of the Commission entitled ‘‘Tasking in Response to the 

Assessment of the Considerations Identified in a ‘Study of Reprisal and Chilling Effect for Raising Mission-Related Concerns and Differing Views at the Nuclear Regulatory Commission’ ’’ and dated June 19, 2018 (ADAMS Accession No.: 

ML18165A296). 

PURPOSE AND SUMMARY

H.R. 1320 was introduced on March 2, 2017, by Rep. Adam 

Kinzinger (R–IL) with Rep. Mike Doyle (D–PA). The legislation adVerDate Sep 11 2014 01:04 Sep 11, 2018 Jkt 079006 PO 00000 Frm 00006 Fmt 6659 Sfmt 6602 E:\HR\OC\HR924.XXX HR924
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1 Atomic Energy Act of 1954, P.L. 83–703. 

2 42 U.S.C. 2011. 

3https://www.nrc.gov/about-nrc/governing-laws.html. 

4 U.S. Nuclear Regulatory Commission, ‘‘About the NRC,’’ Updated January 26, 2018. Accessible at: https://www.nrc.gov/about-nrc.html. 

dresses the Nuclear Regulatory Commission’s (NRC) budget development and fee recovery process, in addition to regulatory and licensing requirements for civil nuclear facilities. 

BACKGROUND AND NEED FOR LEGISLATION

The Atomic Energy Act of 1954, as amended, (AEA) is the principal legislation governing the licensing, oversight, and regulation 

of civil nuclear technology. The AEA allows for peaceful, civilian 

use of atomic energy, specifically noting that ‘‘the development, 

use, and control of atomic energy shall be directed so as to promote 

world peace, improve the general welfare, increase the standard of 

living, and strengthen free competition in private enterprise.’’ 1 The 

law’s many broad provisions govern all aspects of nuclear technology, licensing, oversight, and regulation of domestic civil nuclear 

facilities. The ‘‘reasonable assurance’’ regulatory standard remains 

the foundation of the regulatory requirements on civilian nuclear 

licensees. 

The AEA established and granted authority to the Atomic Energy Commission (AEC) to oversee the government’s nuclear programs and was charged with both regulating government and commercial nuclear facilities, as well as fulfilling the U.S. policy goals 

to ‘‘develop, use, and control’’ atomic energy to ‘‘make the maximum contribution to the general welfare . . . .’’ 2 The regulatory 

framework established in the AEA remains the ‘‘fundamental U.S. 

law on both the civilian and military uses of nuclear materials.’’ 3

During the development and maturation of the commercial nuclear industry, Congress and the public developed concerns about 

the lack of AEC’s role as an independent safety regulator. In response, Congress passed the Energy Reorganization Act in 1974 to 

establish the NRC, as well as the Energy Research and Development Administration, the Department of Energy’s predecessor organization. 

Today, the NRC continues to serve as an independent regulatory 

agency ‘‘to ensure the safe use of radioactive materials for beneficial civilian purposes while protecting people and the environment.’’ The NRC’s mission is to ‘‘licens[e] and regulat[e] the Nation’s civilian use of radioactive materials to protect public health 

and safety, promote the common defense and security, and protect 

the environment.’’ 4

Nuclear Regulatory Commission user fees 

Under authority granted to the NRC pursuant to the Independent Offices Appropriations Act of 1952, the Commission 

charged an hourly fee, known as the ‘‘Part 170’’ fee for the chapter 

of the fee description in Title 10 of the Code of Federal Regulations. 

The Part 170 fee was charged to NRC licensees or applicants for 

specific actions by Commission staff and varied with the relative 

workload. For example, the Part 170 fees provided 45 percent of 

the NRC’s budget authority in fiscal years 1988 and 1989, but the 

total level of license specific work was trending down due to canVerDate Sep 11 2014 01:04 Sep 11, 2018 Jkt 079006 PO 00000 Frm 00007 Fmt 6659 Sfmt 6602 E:\HR\OC\HR924.XXX HR924
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5 Nuclear Regulatory Commission, ‘‘Revision of Fee Schedules: Fee Recovery for Fiscal Year 

2018.’’ 

celled reactor orders following the Three Mile Island incident coupled with increased reactor costs. 

The budget resolution for fiscal year 1990 instructed the authorizing committees of jurisdiction to provide for deficit reduction 

through increased NRC user fees. H.R. 1549, the Nuclear Regulatory Commission Authorization Act for Years 1990 and 1991, and 

subsequently the Omnibus Budget Reconciliation Act of 1990 

(OBRA 90), required the NRC to fully recover its budget authority 

in a fiscal year through Part 170 fees and additional annual 

charges. The annual charges are known as ‘‘Part 171’’ fees, which 

include nuclear materials licensees, as well as operating reactors, 

decommissioned sites, fuel cycle facilities, and other miscellaneous 

licensee classes. 

Congress amended the fee recovery in 2000 to reduce incrementally the fee recovery threshold from 100 percent to 90 percent and 

excluded certain fees not directly attributable to NRC applicants or 

licensees, such as appropriations made from the Nuclear Waste 

Fund or for generic homeland security activities. In 2005, 107 operating reactors provided about 75 percent of the NRC’s total budget 

authority and paid an annual fee of about $3.1 million. 

From 2005 through 2010, the NRC’s budget increased 59 percent 

in anticipation of increased workload, which did not materialize. 

Due to a confluence of energy market and infrastructure challenges, nine reactors have ceased commercial operation since 2005 

and 12 more reactors are expected to cease operation by 2025. As 

operating nuclear reactors enter the decommissioning phase, the 

NRC must recover budget authority from fewer reactors, thereby 

increasing financial strains on the commercial nuclear power industry. 

Current status of NRC fee and budget process 

Due to the statutory requirement to recover what is essentially 

an arbitrary percentage of 90 percent of total budget authority, 

when Part 171 annual charges decrease, the Commission must increase the hourly charge for the Part 170 fees. For example, the fiscal year 2018 NRC fee schedule resulted in an increase of the professional hourly rate from $263 to $275 due ‘‘primarily to the 7.3 

percent decline’’ in staff.5 Therefore, because fewer staff have to recover the same level of budget authority as a result of certain fixed 

costs, the NRC increased the total rate. The sole uranium conversion fuel cycle facility was in standby operation during fiscal year 

2018; however, NRC’s Part 171 annual charge for that facility increased by $20,000 because the NRC did not charge the same level 

of Part 170 fees due to the status of the facility. The Committee 

heard testimony that this structure has placed an increasing financial strain on the industry. 

In testimony before the Subcommittee on Energy, NRC Chairman Svinicki noted, based on her ten-year service with the Commission, ‘‘that the potential wave of retirements is noticeable and 

appreciable, and although I don’t know at what point the number 

of operating reactors has diminished so far that the 90 percent fee 

recovery is not sustainable. I think that the predicted number of 

9 

6 Committee on Energy and Commerce, Subcommittee on Energy and Subcommittee on Environment, ‘‘Fiscal Year 2019 Nuclear Regulatory Commission Budget,’’ March 20, 2018. 7Government Accountability Office, ‘‘Nuclear Regulatory Commission: Regulatory Fee-Setting 

Calculations Need Greater Transparency,’’ GAO–17–232. February 2017. 8Government Accountability Office, ‘‘Nuclear Regulatory Commission: Additional Action Needed to Improve Process for Billing Licensees,’’ GAO–18–318. March 2018. 9Government Accountability Office, ‘‘Strategic Human Capital Management: NRC Could Better Manage the Size and Composition of its Workforce by Further Incorporating Leading Practices,’’ GAO–17–233. April 2017. 

potential shutdowns does make this a timely issue for the Commission and the Congress to engage on a dialogue on this—on this 

matter.’’ 6 In the same hearing, Commissioner Baran also noted 

that the Commission would be challenged if a large number of 

plants were to shut down. 

NRC’s documented lack of data, processes, and transparency limits the Commission’s ability to efficiently manage the organization’s 

finances. At the request of the Committee, the Government Accountability Office consistently identified a need to improve the 

Commission’s budget process and made recommendations to address those findings. GAO found NRC lacked transparency in its 

annual fee rule and recommended the establishment of performance goals.7 Another GAO review found licensees did not have adequate information in NRC billing and invoicing process and recommended NRC advance an electronic billing system.8 In 2017, 

GAO also found that NRC’s workforce was not properly managed, 

leading to unknown workforce costs and projections.9

H.R. 1320 provisions 

The Nuclear Utilization of Keynote Energy Act replaces the existing statutory fee recovery requirements with a more robust and 

transparent process, which will result in a more efficient, predictable, and accountable regulator. Specifically, section 3 sets a defined process relating to all stages of NRC’s financial management 

system. These stages include a clear identification of priority activities that directly support NRC’s regulation of licensees, predictability in annual charges for operating reactors and fuel cycle facilities, transparency and a dispute resolution process for NRC’s 

billing and invoicing process, and elimination of the 90 percent recovery requirement to exclude costs not directly attributable to a 

licensee. 

The AEA was enacted when very few countries maintained a 

civil nuclear energy program and the United States’ commercial industry lacked significant operating experience. Legacy provisions in 

the AEA are not reflective of the existing markets and technology. 

Due to the international markets and proliferation risks, Congress 

prohibited any foreign entity from holding an ownership, controlling, or dominating position of a civil nuclear facility. Since the 

AEA became law, additional reviews of foreign investment have 

been established, such as the Committee to Review Foreign Investment in the United States. Section 4 of H.R. 1320 requires GAO 

to determine what the potential implications are of removing this 

Cold War-era provision. 

Similarly, section 5 requires a GAO study on eliminating the 

AEA provision that requires a public hearing even when there is 

not a request for such a hearing. This process was necessary for 

the AEC while the civilian nuclear industry matured through the 

1960s and 1970s. 

10 

The current NRC license application and review process for operating nuclear power reactors requires extensive scientific and technical analysis. The analysis for various licensing stages, including 

an early site permit, a combined construction and operating license, 

and design certification for reactors, result in major costs and often 

take multiple years to process by NRC staff. Section 7 makes targeted changes to NRC’s license review process, which should result 

in significant efficiency improvements. The bill sets timelines for 

action on draft environmental impact statements (EIS), the technical review process and safety evaluation reports, and final EIS. 

The Committee expects the NRC to be able to meet the 24 and 42- 

month deadlines, unless unexpected action requires additional 

time. NRC’s recent revision to require additional information included for permits and licenses prior to accepting and docketing 

such permit or license allow these respective timelines to be easily 

achieved. 

The Committee acknowledges the hardships that may be imposed 

on local communities hosting a nuclear power plant that ceases 

commercial operation. School districts, local economic development, 

and village support services are all affected by the loss of tax revenue and jobs. The report required in section 8 is intended to provide a ‘‘lessons learned’’ report to include best practices for how to 

mitigate those adverse impacts through the establishment of local 

community advisory boards. 

COMMITTEE ACTION

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

on H.R. 1320. 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. 1320, as amended, 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 ordered 

H.R. 1320, as amended, favorably reported to the House by a voice 

vote. 

COMMITTEE VOTES

Clause 3(b) of rule XIII requires the Committee to list the record 

votes on the motion to report legislation and amendments thereto. 

11 

There were no record votes taken in connection with ordering H.R. 

1320 reported. 

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. 1320 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, August 30, 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. 1320, the Nuclear Utilization of Keynote Energy Act. 

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

to provide them. The CBO staff contact is Megan Carroll. 

Sincerely, 

KEITH HALL, Director. 

Enclosure. 

H.R. 1320—Nuclear Utilization of Keynote Energy Act 

Summary: The Nuclear Regulatory Commission (NRC) licenses 

and regulates commercial nuclear power plants and other facilities 

that use radioactive materials. Under current law, the agency is required to recover most of its funding through fees charged to entities it regulates. H.R. 1320 would modify the formula used to determine the amount of those fees. The bill also would modify procedures related to NRC’s review of applications for certain permits 

and licenses and allow the agency to conduct, on an informal basis, 

any type of hearing requested to review the agency’s actions or decisions. H.R. 1320 also would require the NRC and the Government 

Accountability Office (GAO) to complete a variety of studies and reports on nuclear-related issues. 

Using information from the NRC, CBO estimates that implementing H.R. 1320 would cost $28 million over the 2019–2023 period, subject to the availability of appropriated funds. 

Enacting the bill would not affect direct spending or revenues; 

therefore, pay-as-you-go procedures do not apply. 

12 

10For details on fee-relief activities in 2018, see Revision of Fee Schedules, Fee Recovery for 

Fiscal Year 2018, 83 Fed Reg 122 (final rule, June 25, 2018), https://www.gpo.gov/fdsys/pkg/FR2018-06-25/pdf/2018-13320.pdf. 

CBO estimates that enacting H.R. 1320 would not increase net 

direct spending or on-budget deficits in any of the four consecutive 

10-year periods beginning in 2029. 

H.R. 1320 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. 1320 is shown in the following table. The costs 

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

By fiscal year, in millions of dollars— 

2018 2019 2020 2021 2022 2023 2019– 

2023 

INCREASES IN SPENDING SUBJECT TO APPROPRIATION 

Estimated Authorization Level ........................................................... 0 0 0 10 11 11 32 

Estimated Outlays ............................................................................. 0 0 0 7 10 11 28 

Basis of estimate: The NRC is statutorily required to offset most 

of its funding, which is provided in annual appropriation acts, 

through fees charged to the entities it regulates. Under permanent 

law, some funding is excluded (or exempt) from that cost-recovery 

requirement—primarily, funding for certain activities related to defense or homeland security and appropriations from the Nuclear 

Waste Fund to support activities related to nuclear waste disposal. 

Ninety percent of the remaining appropriation is offset by two 

types of fees: 

• Cost recovery fees charged to individual applicants and licensees to cover NRC’s costs of providing services or things of 

value, and 

• Annual fees assessed on all licensees at rates necessary to 

ensure that the aggregate amount of fees collected for a given 

year meets that year’s target. 

The remaining 10 percent of nonexempt funding is not offset by 

fees. The NRC refers to the activities funded with that portion of 

funding as ‘‘fee relief’ activities that are not directly attributable to 

existing licensees or that involve costs that are not recoverable 

under NRC policies.10

Starting in 2021, H.R. 1320 would specify a new formula for the 

NRC to follow in setting fees. The bill would expand the scope of 

funding that is exempt from the cost-recovery requirement to include appropriations for activities related to developing a regulatory infrastructure for advanced nuclear reactor technologies. The 

bill also would exempt funding for any activities that the NRC 

identifies as eligible for fee relief. Under the bill, after backing out 

funding for excluded activities, the NRC would be required to offset 

approximately 100 percent of the remaining funding through fees. 

Permanently exempting funding related to developing a regulatory infrastructure for advanced nuclear technologies from the 

NRC’s cost-recovery requirement would effectively authorize appropriations from the general fund for that purpose starting in 2021. 

(The Consolidated Appropriations Act, 2018, provided $10 million 

for such activities and exempted that amount from the NRC’s costrecovery requirement for 2018; however, that exemption is only in 

13 

effect for that year.) Assuming that future appropriations to develop that regulatory framework remain in line with current 

amounts, CBO estimates that outlays stemming from such funding 

would total $28 million over the 2021–2023 period. 

In contrast, CBO does not expect that permanently excluding 

funding for activities that the NRC identifies as eligible for fee relief from the cost-recovery requirement, in conjunction with the requirement that the NRC offset approximately 100 percent of all 

nonexempt funding, would materially affect spending for fee-relief 

activities, the aggregate amount of fees collected for a given year, 

or the proportion of overall funding that is not offset by those fees. 

Historically, the amount of funding that the NRC allocates for activities designated as fee relief has been close to, but not necessarily equal to, the 10 percent of nonexempt funding that is not 

currently offset by fees. Any difference between those amounts results in an adjustment (either an increase or decrease) to all licensees’ annual fees to ensure compliance with the NRC’s collection target. Under H.R. 1320, CBO expects that overall results would be 

similar—that is, annual fees could be higher or lower based on the 

amount of funding allocated for fee relief activities. Assuming that 

such funding remains in line with historical levels, CBO expects 

that the results of the proposed formula for collecting fees under 

H.R. 1320 would not differ markedly from the existing formula. 

More broadly, under current law or H.R. 1320, the amount of 

fees collected in future years will depend on the level of funding 

provided for a range of specific NRC activities. Because CBO has 

no basis for predicting how much funding will be provided for such 

activities in future years, CBO cannot determine whether the resulting fees, in aggregate, would be higher or lower under H.R. 

1320 than under current law. 

Finally, CBO estimates that any increase in NRC’s or GAO’s 

costs to meet new reporting requirements under H.R. 1320—which 

would be subject to appropriation—would not exceed $500,000 annually. 

Pay-As-You-Go considerations: None. 

Increase in long-term direct spending and deficits: CBO estimates that enacting H.R. 1320 would not increase net direct spending or on-budget deficits in any of the four consecutive 10-year periods beginning in 2029. 

Mandates: H.R. 1320 contains no intergovernmental or privatesector mandates as defined in UMRA. 

Previous CBO estimate: On June 20, 2017, CBO transmitted a 

cost estimate for S. 512, the Nuclear Energy Innovation and Modernization Act, as reported by the Senate Committee on Environment and Public Works on May 25, 2017. Both S. 512 and H.R. 

1320 would make similar modifications to the NRC’s cost-recovery 

formula, and both cost estimates reflect an increase in spending 

subject to appropriation for activities related to developing a regulatory infrastructure for advanced nuclear reactors. Differences in 

our estimates of budgetary effects attributable to proposed changes 

in the cost-recovery formula reflect differences in when that formula would take effect. 

Estimate prepared by: Federal costs: Megan Carroll; Mandates: 

Jon Sperl. 

14 

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 increase transparency, predictability, efficiency of the regulation of commercial nuclear industry. 

DUPLICATION OF FEDERAL PROGRAMS

Pursuant to clause 3(c)(5) of rule XIII, no provision of H.R. 1320 

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 Congressional 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. 1320 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 following directed rule 

makings are contained in H.R. 1320: 

• The Commission must amend the regulations to implement section 7 of H.R. 1320 with respect to application reviews 

for nuclear energy projects. 

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. 

15 

SECTION-BY-SECTION ANALYSIS OF THE LEGISLATION

Section 1. Short title 

This section provides a short title of ‘‘Nuclear Utilization of Keynote Energy Act.’’ 

Section 2. Nuclear Regulatory Commission User Fees and Annual 

Charges Through Fiscal Year 2020. 

This section amends section 6101(c)(2)(A) of the Omnibus Budget 

Reconciliation Act of 1990 to exempt funds made available for the 

NRC for the development of a regulatory infrastructure for advanced nuclear reactors from the statutory fee recovery requirements. The section is repealed on October 1, 2020. 

Section 3. Nuclear Regulatory Commission user fees and annual 

charges for fiscal year 2021 and each fiscal year thereafter 

This section establishes requirements relating to the NRC’s annual Congressional budget justification, assessments for fees and 

charges, and performance and reporting of licensing actions. Section 3(a) requires the Commission to identify funding necessary for 

completion of requested activities of the Commission during the applicable fiscal year. Funding made available for those activities in 

the applicable fiscal year should be used for the anticipated expenditures. In the Commission’s budget justification, corporate support costs shall not exceed, as a percentage of total budget authority requested, 30 percent for each of the fiscal years 2021 and 2022, 

29 percent for each of the fiscal years 2023 and 2024, and 28 percent for fiscal year 2025 and each year thereafter. 

Section 3(b) requires the Commission to assess and collect fees 

and charges equal to the total budget authority of the Commission 

in each fiscal year, minus the costs of certain excluded activities. 

The excluded activities are (1) any fee-relief activity, as identified 

by the Commission; (2) amounts appropriated from the Nuclear 

Waste Fund; (3) for implementation of section 3116 of the Ronald 

Reagan National Defense Authorization Act of 2005; (4) for homeland security activities of the Commission; (5) for the Inspector 

General provided to the Defense Nuclear Facilities Safety Board; 

(6) for partnership programs with institutions of higher education; 

(7) for scholarship and fellowship programs; and (8) costs for activities related to the development of regulatory infrastructure for advanced nuclear reactor technologies. The Commission shall assess 

and collect fees from any person who receives a service or thing of 

value to cover the costs of the Commission. The Commission shall 

establish a schedule of annual charges among licensees and certificate holders of the Commission. The annual charge for operating 

reactors shall not exceed the annual fee established for fiscal year 

2015, unless the Commission issues a written determination that 

the cap may compromise the safety and security mission of the 

Commission. The aggregate annual charges for fuel facilities may 

not exceed the level established for fiscal year 2016 and charges to 

fuel cycle facility licensees must be commensurate with a change 

in Commission activity for such facility. The schedule of charges 

shall be based on the cost of providing regulatory services and may 

be based on the allocation of the resources of the Commission 

16 

among licensees or certificate holders or classes of licensees or certificate holders. 

Section 3(c) directs the Commission to develop performance 

metrics and milestone schedules for requested activities of the 

Commission. If the milestone schedule is not met for a final safety 

evaluation, the NRC Executive Director of Operations shall notify 

the Commission within 30 days. If the milestone schedule for the 

final safety evaluation is not completed by 180 days from the 

schedule, the Commission shall notify Congress describing the 

delay, a detailed explanation accounting for the delay, and a plan 

for timely completion for the final safety evaluation. 

Section 3(d) requires the Commission to ensure fees charged 

have processes established for an appropriate review and approval 

of invoices; to audit invoices to ensure accuracy, transparency, and 

fairness; and to provide licensees and applicants to dispute or otherwise seek review and correction of errors in invoices for such 

fees. 

Section 3(e) directs the Commission to submit a report to the 

Committee on Appropriations and Committee on Environment and 

Public Works of the Senate and the Committee on Appropriations 

and the Committee on Energy and Commerce of the House of Representatives describing the implementation of this section, including any effects of such implementation and recommendations for 

improvement. 

Section 3(f) defines the terms ‘‘advanced nuclear reactor’’; ‘‘Commission’’; ‘‘corporate support costs’’; ‘‘research reactor’’; and ‘‘requested activity of the Commission.’’ 

Section 3(g) sets the effective date for the section on October 1, 

2020. 

Section 4. Study on elimination of foreign licensing restrictions 

Section 4 requires the Comptroller General to transmit a report 

to Congress on the feasibility and implications of repealing restrictions under sections 103d and 104d of the Atomic Energy Act of 

1954 on issuing licenses for certain nuclear facilities to an alien or 

an entity owned, controlled, or dominated by an alien, a foreign 

corporation, or a foreign government. 

Section 5. Study on the impact of the elimination of mandatory 

hearing for uncontested licensing applications 

Section 5 requires the Comptroller General to transmit a report 

to Congress on the effects of eliminating hearings required under 

section 189a of the Atomic Energy Act of 1954 for an application 

under section 103 or section 104b for a construction permit for a 

facility in the absence of a request of any person whose interest 

may be affected by the proceeding. 

Section 6. Informal hearing procedures 

Section 6 amends section 189a of the Atomic Energy Act of 1954 

to allow the Commission to use informal adjudicatory procedures 

for any hearing for which the Commission determines that adjudicatory procedures under section 554 of title 5 of the United 

States Code are unnecessary. 

17 

Section 7. Application reviews for nuclear energy projects 

Section 7 amends section 185 of the Atomic Energy Act of 1954 

to direct the Commission to establish procedures that a draft environmental impact statement is issued within 24 months after the 

application is accepted for docketing and the technical review process, final safety evaluation report, and final environmental impact 

statement are completed within 42 months of the application being 

accepted for docketing. Proceedings for a combined construction 

permit and operating license for a site in which an early site permit has been issued shall be prepared as a supplement to the early 

site permit environmental impact statement. A supplemental environmental impact statement shall incorporate by reference information prepared from the early site permit and include additional 

discussion, analyses, findings, and conclusions on matters resolved 

in the early site permit only to the extent necessary to address information that is new and significant in that information would 

materially change the prior findings or conclusions. 

The procedures established under the Atomic Energy Act shall 

require that an application for an early site permit, construction 

permit, operating license, or combined construction permit and operating license at a site of a licensed facility shall use the part of 

the licensing basis of the existed production or utilization facility. 

The Commission shall initiate not later than 1 year after the 

date of enactment of the Nuclear Utilization of Keynote Energy Act 

to implement the procedures in this section. For the purposes of 

this section, the term ‘‘environmental impact statement’’ means a 

detailed statement required under section 103(C) of the National 

Environmental Policy Act of 1969. Nothing contained in this subsection exempts the Commission from the requirements of the National Environmental Policy Act of 1969. 

Section 8. Report identifying best practices for establishment and 

operation of local community advisory boards 

Section 8 requires the Commission to submit to Congress, not 

later than 18 months after the date of enactment, a report identifying best practices with respect to the establishment and operation of a local community advisory board for communities that 

may be affected by a decommissioning nuclear power plant. 

Section 9. Report on study recommendations 

Section 9 requires the Commission to submit a report not later 

than 90 days after enactment to Congress on the status of addressing and implementing recommendations contained in the memorandum dated June 19, 2018 on effects of reprisal and raising differing views. 

CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

In compliance with clause 3(e) of rule XIII of the Rules of the 

House of Representatives, changes in existing law made by the bill, 

as reported, are shown as follows (existing law proposed to be omitted is enclosed in black brackets, new matter is printed in italic, 

and existing law in which no change is proposed is shown in 

roman): 

18 

OMNIBUS BUDGET RECONCILIATION ACT OF 1990 

* * * * * * * 

TITLE VI—ENERGY AND 

ENVIRONMENTAL PROGRAMS 

* * * * * * * 

SEC. 6101. NRC USER FEES AND ANNUAL CHARGES. 

(a) ANNUAL ASSESSMENT.— (1) IN GENERAL.—The Nuclear Regulatory Commission (in 

this section referred to as the ‘‘Commission’’) shall annually assess and collect such fees and charges as are described in subsections (b) and (c). 

(2) FIRST ASSESSMENT.—The first assessment of fees under 

subsection (b) and annual charges under subsection (c) shall be 

made not later than September 30, 1991. 

(b) FEES FOR SERVICE OR THING OF VALUE.—Pursuant to section 

9701 of title 31, United States Code, any person who receives a 

service or thing of value from the Commission shall pay fees to 

cover the Commission’s costs in providing any such service or thing 

of value. 

(c) ANNUAL CHARGES.— (1) PERSONS SUBJECT TO CHARGE.—Except as provided in 

paragraph (4), any licensee or certificate holder of the Commission may be required to pay, in addition to the fees set forth 

in subsection (b), an annual charge. 

(2) AGGREGATE AMOUNT OF CHARGES.— (A) IN GENERAL.—The aggregate amount of the annual 

charges collected from all licensees and certificate holders 

in a fiscal year shall equal an amount that approximates 

the percentages of the budget authority of the Commission 

for the fiscal year stated in subparagraph (B), less— 

(i) amounts collected under subsection (b) during the 

fiscal year; 

(ii) amounts appropriated to the Commission from 

the Nuclear Waste Fund for the fiscal year; 

(iii) amounts appropriated to the Commission for the 

fiscal year for implementation of section 3116 of the 

Ronald W. Reagan National Defense Authorization Act 

for Fiscal Year 2005; øand¿ 

(iv) amounts appropriated to the Commission for 

homeland security activities of the Commission for the 

fiscal year, except for the costs of fingerprinting and 

background checks required by section 149 of the 

Atomic Energy Act of 1954 (42 U.S.C. 2169) and the 

costs of conducting security inspectionsø.¿; and 

(v) amounts appropriated to the Commission for the 

fiscal year for activities related to the development of a 

regulatory infrastructure for advanced nuclear reactor 

technologies. 

(B) PERCENTAGES.—The percentages referred to in subparagraph (A) are— 

(i) 98 percent for fiscal year 2001; 

19 

(ii) 96 percent for fiscal year 2002; 

(iii) 94 percent for fiscal year 2003; 

(iv) 92 percent for fiscal year 2004; and 

(v) 90 percent for fiscal year 2005 and each fiscal 

year thereafter and fiscal year 2006. 

(3) AMOUNT PER LICENSEE.—The Commission shall establish, 

by rule, a schedule of charges fairly and equitably allocating 

the aggregate amount of charges described in paragraph (2) 

among licensees. To the maximum extent practicable, the 

charges shall have a reasonable relationship to the cost of providing regulatory services and may be based on the allocation 

of the Commission’s resources among licensees or classes of licensees. 

(4) EXEMPTION.— 

(A) IN GENERAL.—Paragraph (1) shall not apply to the 

holder of any license for a federally owned research reactor 

used primarily for educational training and academic research purposes. 

(B) RESEARCH REACTOR.—For purposes of subparagraph 

(A), the term ‘‘research reactor’’ means a nuclear reactor 

that— 

(i) is licensed by the Nuclear Regulatory Commission under section 104 c. of the Atomic Energy Act of 

1954 (42 U.S.C. 2134(c)) for operation at a thermal 

power level of 10 megawatts or less; and 

(ii) if so licensed for operation at a thermal power 

level of more than 1 megawatt, does not contain— 

(I) a circulating loop through the core in which 

the licensee conducts fuel experiments; 

(II) a liquid fuel loading; or 

(III) an experimental facility in the core in excess of 16 square inches in cross-section. 

(d) DEFINITION.—As used in this section, the term ‘‘Nuclear 

Waste Fund’’ means the fund established pursuant to section 302(c) 

of the Nuclear Waste Policy Act of 1982 (42 U.S.C. 10222(c)). 

(e) CONFORMING AMENDMENT TO COBRA.—[Omitted—Amends 

other law] 

[Effective October 1, 2020, section 2(b) of H.R. 1320 (as reported) 

provides for an amendment to repeal section 6101 of the Omnibus 

Budget Reconciliation Act of 1990. Upon such date, section 6101 of 

such Act, as amended by section 2(a) of H.R. 1320 (as reported), is 

repealed as follows.] 

øSEC. 6101. NRC USER FEES AND ANNUAL CHARGES. 

ø(a) ANNUAL ASSESSMENT.— 

ø(1) IN GENERAL.—The Nuclear Regulatory Commission (in 

this section referred to as the ‘‘Commission’’) shall annually assess and collect such fees and charges as are described in subsections (b) and (c). 

ø(2) FIRST ASSESSMENT.—The first assessment of fees under 

subsection (b) and annual charges under subsection (c) shall be 

made not later than September 30, 1991. 

ø(b) FEES FOR SERVICE OR THING OF VALUE.—Pursuant to section 

9701 of title 31, United States Code, any person who receives a 

service or thing of value from the Commission shall pay fees to 

20 

cover the Commission’s costs in providing any such service or thing 

of value. 

ø(c) ANNUAL CHARGES.— ø(1) PERSONS SUBJECT TO CHARGE.—Except as provided in 

paragraph (4), any licensee or certificate holder of the Commission may be required to pay, in addition to the fees set forth 

in subsection (b), an annual charge. 

ø(2) AGGREGATE AMOUNT OF CHARGES.— ø(A) IN GENERAL.—The aggregate amount of the annual 

charges collected from all licensees and certificate holders 

in a fiscal year shall equal an amount that approximates 

the percentages of the budget authority of the Commission 

for the fiscal year stated in subparagraph (B), less— 

ø(i) amounts collected under subsection (b) during 

the fiscal year; 

ø(ii) amounts appropriated to the Commission from 

the Nuclear Waste Fund for the fiscal year; 

ø(iii) amounts appropriated to the Commission for 

the fiscal year for implementation of section 3116 of 

the Ronald W. Reagan National Defense Authorization 

Act for Fiscal Year 2005; 

ø(iv) amounts appropriated to the Commission for 

homeland security activities of the Commission for the 

fiscal year, except for the costs of fingerprinting and 

background checks required by section 149 of the 

Atomic Energy Act of 1954 (42 U.S.C. 2169) and the 

costs of conducting security inspections; and 

ø(v) amounts appropriated to the Commission for 

the fiscal year for activities related to the development 

of a regulatory infrastructure for advanced nuclear reactor technologies. 

ø(B) PERCENTAGES.—The percentages referred to in subparagraph (A) are— 

ø(i) 98 percent for fiscal year 2001; 

ø(ii) 96 percent for fiscal year 2002; 

ø(iii) 94 percent for fiscal year 2003; 

ø(iv) 92 percent for fiscal year 2004; and 

ø(v) 90 percent for fiscal year 2005 and each fiscal 

year thereafter and fiscal year 2006. 

ø(3) AMOUNT PER LICENSEE.—The Commission shall establish, by rule, a schedule of charges fairly and equitably allocating the aggregate amount of charges described in paragraph 

(2) among licensees. To the maximum extent practicable, the 

charges shall have a reasonable relationship to the cost of providing regulatory services and may be based on the allocation 

of the Commission’s resources among licensees or classes of licensees. 

ø(4) EXEMPTION.— 

ø(A) IN GENERAL.—Paragraph (1) shall not apply to the 

holder of any license for a federally owned research reactor 

used primarily for educational training and academic research purposes. 

ø(B) RESEARCH REACTOR.—For purposes of subparagraph 

(A), the term ‘‘research reactor’’ means a nuclear reactor 

that— 

21 

ø(i) is licensed by the Nuclear Regulatory Commission under section 104 c. of the Atomic Energy Act of 

1954 (42 U.S.C. 2134(c)) for operation at a thermal 

power level of 10 megawatts or less; and 

ø(ii) if so licensed for operation at a thermal power 

level of more than 1 megawatt, does not contain— 

ø(I) a circulating loop through the core in which 

the licensee conducts fuel experiments; 

ø(II) a liquid fuel loading; or 

ø(III) an experimental facility in the core in excess of 16 square inches in cross-section. 

ø(d) DEFINITION.—As used in this section, the term ‘‘Nuclear 

Waste Fund’’ means the fund established pursuant to section 302(c) 

of the Nuclear Waste Policy Act of 1982 (42 U.S.C. 10222(c)). 

ø(e) CONFORMING AMENDMENT TO COBRA.—[Omitted—Amends 

other law]¿ 

* * * * * * * 

ATOMIC ENERGY ACT OF 1954 

TITLE I—ATOMIC ENERGY 

* * * * * * * 

CHAPTER 16. JUDICIAL REVIEW AND ADMINISTRATIVE 

PROCEDURE 

* * * * * * * 

SEC. 185. CONSTRUCTION PERMITS AND OPERATING LICENSES.—a. 

All applicants for licenses to construct or modify production or utilization facilities shall, if the application is otherwise acceptable to 

the Commission, be initially granted a construction permit. The 

construction permit shall state the earliest and latest dates for the 

completion of the construction or modification. Unless the construction or modification of the facility is completed by the completion 

date, the construction permit shall expire, and all rights thereunder be forfeited, unless upon good cause shown, the Commission 

extends the completion date. Upon the completion of the construction or modification of the facility, upon the filing of any additional 

information needed to bring the original application up to date, and 

upon finding that the facility authorized has been constructed and 

will operate in conformity with the application as amended and in 

conformity with the provisions of this Act and of the rules and regulations of the Commission, and in the absence of any good cause 

being shown to the Commission why the granting of a license 

would not be in accordance with the provisions of this Act, the 

Commission shall thereupon issue a license to the applicant. For 

all other purposes of this Act, a construction permit is deemed to 

be a ‘‘license.’’ 

b. After holding a public hearing under section 189 a. (1)(A), the 

Commission shall issue to the applicant a combined construction 

and operating license if the application contains sufficient information to support the issuance of a combined license and the Commission determines that there is reasonable assurance that the facility 

22 

will be constructed and will operate in conformity with the license, 

the provisions of this Act, and the Commission’s rules and regulations. The Commission shall identify within the combined license 

the inspections, tests, and analyses, including those applicable to 

emergency planning, that the licensee shall perform, and the acceptance criteria that, if met, are necessary and sufficient to provide reasonable assurance that the facility has been constructed 

and will be operated in conformity with the license, the provisions 

of this Act, and the Commission’s rules and regulations. Following 

issuance of the combined license, the Commission shall ensure that 

the prescribed inspections, tests, and analyses are performed and, 

prior to operation of the facility, shall find that the prescribed acceptance criteria are met. Any finding made under this subsection 

shall not require a hearing except as provided in section 189 a. 

(1)(B). 

c. APPLICATION REVIEWS FOR NUCLEAR ENERGY PROJECTS.— 

(1) STREAMLINING LICENSE APPLICATION REVIEW.—With respect to an application that is docketed seeking issuance of a 

construction permit, operating license, or combined construction 

permit and operating license for a production or utilization facility, the Commission shall include the following procedures: 

(A) Undertake an environmental review process and issue 

any draft environmental impact statement to the maximum 

extent practicable within 24 months after the application is 

accepted for docketing. 

(B) Complete the technical review process and issue any 

safety evaluation report and any final environmental impact statement to the maximum extent practicable within 

42 months after the application is accepted for docketing. 

(2) EARLY SITE PERMIT.— 

(A) SUPPLEMENTAL ENVIRONMENTAL IMPACT STATEMENT.—In a proceeding for a combined construction permit 

and operating license for a site for which an early site permit has been issued, any environmental impact statement 

prepared by the Commission and cooperating agencies shall 

be prepared as a supplement to the environmental impact 

statement prepared for the early site permit. 

(B) INCORPORATION BY REFERENCE.—The supplemental 

environmental impact statement shall— 

(i) incorporate by reference the analysis, findings, 

and conclusions from the environmental impact statement prepared for the early site permit; and 

(ii) include additional discussion, analyses, findings, 

and conclusions on matters resolved in the early site 

permit proceeding only to the extent necessary to address information that is new and significant in that 

the information would materially change the prior 

findings or conclusions. 

(3) PRODUCTION OR UTILIZATION FACILITY LOCATED AT AN EXISTING SITE.—In reviewing an application for an early site permit, construction permit, operating license, or combined construction permit and operating license for a production or utilization facility located at the site of a licensed production or utilization facility, the Commission shall, to the extent practicable, 

23 

use information that was part of the licensing basis of the licensed production or utilization facility. 

(4) REGULATIONS.—The Commission shall initiate a rulemaking, not later than 1 year after the date of enactment of the 

Nuclear Utilization of Keynote Energy Act, to amend the regulations of the Commission to implement this subsection. 

(5) ENVIRONMENTAL IMPACT STATEMENT DEFINED.—In this 

subsection, the term ‘‘environmental impact statement’’ means a 

detailed statement required under section 102(C) of the National Environmental Policy Act of 1969 (42 U.S.C. 4332(C)). 

(6) RELATIONSHIP TO OTHER LAW.—Nothing in this subsection 

exempts the Commission from any requirement for full compliance with section 102(2)(C) of the National Environmental Policy Act of 1969 (42 U.S.C. 4332(2)(C)). 

* * * * * * * 

SEC. 189. HEARINGS AND JUDICIAL REVIEW.— 

a.(1)(A) In any proceeding under this Act, for the granting, suspending, revoking, or amending of any license or construction permit, or application to transfer control, and in any proceeding for 

the issuance or modification of rules and regulations dealing with 

the activities of licenses, and in any proceeding for the payment of 

compensation, an award or royalties under sections 153, 157, 186 

c., or 188, the Commission shall grant a hearing upon the request 

of any person whose interest may be affected by the proceeding, 

and shall admit any such person as a party to such proceeding. The 

Commission shall hold a hearing after thirty days’ notice and publication once in the Federal Register, on each application under section 103 or 104 b. for a construction permit for a facility, and on 

any application under section 104 c. for a construction permit for 

a testing facility. In cases where such a construction permit has 

been issued following the holding of such a hearing, the Commission may, in the absence of a request therefor by any person whose 

interest may be affected, issue an operating license or an amendment to a construction permit or an amendment to an operating license without a hearing, but upon thirty days’ notice and publication once in the Federal Register of its intent to do so. The Commission may dispense with such thirty days’ notice and publication 

with respect to any application for an amendment to a construction 

permit or an amendment to an operating license upon a determination by the Commission that the amendment involves no significant 

hazards consideration. 

(B)(i) Not less than 180 days before the date scheduled for initial 

loading of fuel into a plant by a licensee that has been issued a 

combined construction permit and operating license under section 

185 b., the Commission shall publish in the Federal Register notice 

of intended operation. That notice shall provide that any person 

whose interest may be affected by operation of the plant, may within 60 days request the Commission to hold a hearing on whether 

the facility as constructed complies, or on completion will comply, 

with the acceptance criteria of the license. 

(ii) A request for hearing under clause (i) shall show, prima facie, 

that one or more of the acceptance criteria in the combined license 

have not been, or will not be met, and the specific operational consequences of nonconformance that would be contrary to providing 

24 

reasonable assurance of adequate protection of the public health 

and safety. 

(iii) After receiving a request for a hearing under clause (i), the 

Commission expeditiously shall either deny or grant the request. If 

the request is granted, the Commission shall determine, after considering petitioners’ prima facie showing and any answers thereto, 

whether during a period of interim operation, there will be reasonable assurance of adequate protection of the public health and safety. If the Commission determines that there is such reasonable assurance, it shall allow operation during an interim period under 

the combined license. 

(iv) The Commission, in its discretion, shall determine appropriate hearing procedures, whether informal or formal adjudicatory, for any hearing under clause (i), and shall state its reasons 

therefor. 

(v) The Commission shall, to the maximum possible extent, 

render a decision on issues raised by the hearing request within 

180 days of the publication of the notice provided by clause (i) or 

the anticipated date for initial loading of fuel into the reactor, 

whichever is later. Commencement of operation under a combined 

license is not subject to subparagraph (A). 

(2)(A) The Commission may issue and make immediately effective any amendment to an operating license or any amendment to 

a combined construction and operating license, upon a determination by the Commission that such amendment involves no significant hazards consideration, notwithstanding the pendency before 

the Commission of a request for a hearing from any person. Such 

amendment may be issued and made immediately effective in advance of the holding and completion of any required hearing. In determining under this section whether such amendment involves no 

significant hazards consideration, the Commission shall consult 

with the State in which the facility involved is located. In all other 

respects such amendment shall meet the requirements of this Act. 

(B) The Commission shall periodically (but not less frequently 

than once every thirty days) publish notice of any amendments 

issued, or proposed to be issued, as provided in subparagraph (A). 

Each such notice shall include all amendments issued, or proposed 

to be issued, since the date of publication of the last such periodic 

notice. Such notice shall, with respect to each amendment or proposed amendment (i) identify the facility involved; and (ii) provide 

a brief description of such amendment. Nothing in this subsection 

shall be construed to delay the effective date of any amendment. 

(C) The Commission shall, during the ninety-day period following 

the effective date of this paragraph, promulgate regulations establishing (i) standards for determining whether any amendment to 

an operating license or any amendment to a combined construction 

and operating license involves no significant hazards consideration; 

(ii) criteria for providing or, in emergency situations, dispensing 

with prior notice and reasonable opportunity for public comment on 

any such determination, which criteria shall take into account the 

exigency of the need for the amendment involved; and (iii) procedures for consultation on any such determination with the State in 

which the facility involved is located. 

(3) The Commission may use informal adjudicatory procedures 

for any hearing required under this section for which the CommisVerDate Sep 11 2014 01:04 Sep 11, 2018 Jkt 079006 PO 00000 Frm 00024 Fmt 6659 Sfmt 6603 E:\HR\OC\HR924.XXX HR924
25 

sion determines that adjudicatory procedures under section 554 of 

title 5, United States Code, are unnecessary. 

b. The following Commission actions shall be subject to judicial 

review in the manner prescribed in chapter 158 of title 28, United 

States Code, and chapter 7 of title 5, United States Code: 

(1) Any final order entered in any proceeding of the kind 

specified in subsection (a). 

(2) Any final order allowing or prohibiting a facility to begin 

operating under a combined construction and operating license. 

(3) Any final order establishing by regulation standards to 

govern the Department of Energy’s gaseous diffusion uranium 

enrichment plants, including any such facilities leased to a corporation established under the USEC Privatization Act. 

(4) Any final determination under section 1701(c) relating to 

whether the gaseous diffusion plants, including any such facilities leased to a corporation established under the USEC Privatization Act, are in compliance with the Commission’s standards governing the gaseous diffusion plants and all applicable 

laws. 

* * * * * * * 

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