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[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[S. 3215 Introduced in Senate (IS)]

110th CONGRESS
  2d Session
                                S. 3215

To require the Secretary of Energy to enter into cooperative agreements 
 with private entities to share the cost of obtaining construction and 
 operating licenses for certain types of recycling facilities, and for 
                            other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                             June 26, 2008

    Mr. Domenici (for himself, Mr. Sessions, Ms. Landrieu, and Ms. 
  Murkowski) introduced the following bill; which was read twice and 
       referred to the Committee on Energy and Natural Resources

_______________________________________________________________________

                                 A BILL

 
To require the Secretary of Energy to enter into cooperative agreements 
 with private entities to share the cost of obtaining construction and 
 operating licenses for certain types of recycling facilities, and for 
                            other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Strengthening Management of Advanced 
Recycling Technologies Act of 2008'' or the ``SMART Act of 2008''.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Commission.--The term ``Commission'' means the Nuclear 
        Regulatory Commission.
            (2) Private entity.--The term ``private entity'' means--
                    (A) a person, municipality, or electric utility (as 
                those terms are defined in section 3 of the Federal 
                Power Act (16 U.S.C. 796)); and
                    (B) any legal successor, representative, agent, or 
                agency of any person or entity described in subsection 
                (a).
            (3) Secretary.--The term ``Secretary'' means the Secretary 
        of Energy.

SEC. 3. COST-SHARE COMMERCIAL NUCLEAR LICENSING PROGRAM.

    (a) In General.--The Secretary shall offer to enter into 1 or more 
cooperative agreements with private entities--
            (1) to develop the required licensing documentation and 
        technical criteria for new recycling plants, as determined by 
        the Commission by rule;
            (2) to conduct design and engineering work on not less than 
        1, but not more than 2, recycling technology designs--
                    (A) that is sufficient to develop the designs to a 
                state of design completion; and
                    (B) to allow for the development of firm cost 
                estimates with respect to the development of the 
                recycling technologies; and
            (3) to share the cost of obtaining construction and 
        operating licenses for not more than 2 used fuel recycling 
        facilities with a maximum individual capacity of 2,500 metric 
        tons per year and a minimum capacity of not less than 500 
        metric tons.
    (b) Competitive Basis.--Assistance under this section shall be 
awarded on a competitive basis.
    (c) Matching Funds.--As a condition of awarding assistance under 
this section, the Secretary shall require that Federal funds provided 
under this section be matched with equal matching funds from a non-
Federal source.
    (d) Prerequisites.--Assistance under this section shall be awarded 
only to private entities that propose to develop recycling facilities 
that--
            (1) do not separate pure plutonium;
            (2) reduce the burden on geological repositories for 
        ultimate waste disposal;
            (3) promote extraction of additional useful energy from 
        used fuel from recycling or reuse;
            (4) use only fuel that is produced from reactors that are 
        located in the United States; and
            (5) produce fuel for civilian nuclear power reactors that 
        are located in the United States.

SEC. 4. LONG-TERM CONTRACTS FOR RECYCLING COMMERCIAL USED NUCLEAR FUEL.

    (a) In General.--Subject to subsection (b), the Secretary shall 
offer to enter into long-term contracts with private entities to 
recycle commercial used nuclear fuel.
    (b) Prerequisites.--The Secretary may enter into a long-term 
contract under subsection (a) only if the recycling--
            (1) does not separate pure plutonium;
            (2) reduces the burden on geological repositories for 
        ultimate waste disposal;
            (3) promotes extraction of additional useful energy from 
        used fuel from recycling or reuse;
            (4) uses only fuel that is produced from reactors that are 
        located in the United States; and
            (5) produces fuel for civilian nuclear power reactors that 
        are located in the United States.

SEC. 5. INCENTIVES FOR SITING OF TEMPORARY USED FUEL STORAGE 
              FACILITIES.

    (a) Definitions.--In this section:
            (1) Agreement.--The term ``agreement'' means a temporary 
        used fuel storage facility agreement entered into under 
        subsection (e).
            (2) First used fuel receipt.--The term ``first used fuel 
        receipt'' means the receipt of used fuel by a temporary used 
        fuel storage facility at a site within the jurisdiction of a 
        unit of local government that is a party to an agreement.
            (3) Unit of local government.--The term ``unit of local 
        government'' means any borough, city, county, parish, town, 
        township, village, or other general purpose political 
        subdivision of a State, or association of 2 or more political 
        subdivisions of a State.
            (4) Used fuel.--The term ``used fuel'' means--
                    (A) high-level radioactive waste produced by 
                facilities with which the Secretary has entered into a 
                long-term contract under section 4; or
                    (B) used nuclear fuel.
    (b) Authorization.--The Secretary shall offer to enter into 
temporary used fuel storage facility agreements in accordance with this 
section.
    (c) Notice From Units of Local Government to Secretary.--Not later 
than 180 days after the date of enactment of this Act, representatives 
of a unit of local government may submit to the Secretary written 
notice that the unit of local government is willing to have a privately 
owned and operated temporary used fuel storage facility located at an 
identified site within the jurisdiction of the units of local 
government.
    (d) Preliminary Compensation.--
            (1) In general.--The Secretary shall make payments of 
        $1,000,000 each year to not more than 11 units of local 
        government that have submitted notices under subsection (c).
            (2) Multiple notices.--If more than 11 notices are received 
        under subsection (c), the Secretary shall make payments to the 
        first 11 units of local government, based on the order in which 
        the notices are received.
            (3) Timing.--The payments shall be made annually for a 3-
        year period, on the anniversary date of the filing of the 
        notice under subsection (c).
    (e) Agreement.--
            (1) In general.--On the docketing of an application for a 
        license for a temporary used fuel storage facility at a site 
        within the jurisdiction of an unit of local government by the 
        Commission, the Secretary shall offer to enter into a temporary 
        used fuel storage facility economic impact agreement with the 
        unit of local government.
            (2) Terms and conditions.--An agreement between the 
        Secretary and a unit of local government under this subsection 
        shall contain such terms and conditions (including such 
        financial and institutional arrangements) as the Secretary and 
        the unit of local government determine to be reasonable and 
        appropriate.
            (3) Amendment.--An agreement may be--
                    (A) amended only with the mutual consent of the 
                parties to the agreement; and
                    (B) terminated only in accordance with paragraph 
                (4).
            (4) Termination.--The Secretary shall terminate an 
        agreement if the Secretary determines that any major element of 
        the temporary used fuel storage facility required under the 
        agreement will not be completed.
            (5) Number of agreements.--Not more than 2 agreements may 
        be in effect at any time.
            (6) Payment schedule.--
                    (A) In general.--If the Secretary enters into an 
                agreement under this subsection, the Secretary shall 
                make to the unit of local government and the State in 
                which the unit of local government is located--
                            (i) payments of--
                                    (I) on the date of entering into 
                                the agreement under this subsection, 
                                $6,000,000;
                                    (II) during the period beginning on 
                                the date of entering into an agreement 
                                and ending on the date of first used 
                                fuel receipt or denial of the license 
                                application for a temporary used fuel 
                                storage facility by the Commission, 
                                whichever is later, $10,000,000 for 
                                each year; and
                                    (III) during the period beginning 
                                on the date of first used fuel receipt 
                                and ending on the date of closure of 
                                the facility, a total of the higher 
                                of--
                                            (aa) $15,000,000 for each 
                                        year; or
                                            (bb) $15,000 per metric ton 
                                        of used fuel received at the 
                                        facility for each year, up to a 
                                        maximum of $25,000,000 for each 
                                        year; and
                            (ii) a payment of $20,000,000 on closure of 
                        the facility.
                    (B) Timing of annual payments.--The Secretary shall 
                make annual payments under subparagraph (A)(i)--
                            (i) in the case of annual payments 
                        described in subparagraph (A)(i)(II), on the 
                        anniversary of the date of the docketing of the 
                        license application by the Commission; and
                            (ii) in the case of annual payments 
                        described in subparagraph (A)(i)(III), on the 
                        date of the first used fuel receipt and 
                        thereafter on the anniversary date of the first 
                        used fuel receipt, in lieu of annual payments 
                        described in subparagraph (A)(i)(II).
                    (C) Termination of authority.--Subject to 
                subparagraph (A)(ii), the authority to make payments 
                under this paragraph terminates on the date of closure 
                of the facility.

SEC. 6. ACCEPTANCE, STORAGE, AND SETTLEMENT OF CLAIMS.

    (a) In General.--The Secretary shall offer to enter into a long-
term contract for the storage of used fuel from civilian nuclear power 
plants with a private entity that owns or operates an independent used 
fuel storage facility licensed by the Commission that is located within 
the jurisdiction of a unit of local government to which payments are 
made pursuant to section 5(e).
    (b) Settlement and Acceptance of Used Fuel.--
            (1) In general.--At the request of a party to a contract 
        under section 302(a) of the Nuclear Waste Policy Act of 1982 
        (42 U.S.C. 10222(a)), the Secretary may enter into an agreement 
        for the settlement of all claims against the Secretary under a 
        contract for failure to dispose of high-level radioactive waste 
        or used nuclear fuel not later than January 31, 1998.
            (2) Terms and conditions.--A settlement agreement described 
        in paragraph (1)--
                    (A) shall contain such terms and conditions 
                (including such financial and institutional 
                arrangements) as the Secretary and the party to the 
                contract determine to be reasonable and appropriate; 
                and
                    (B) may include the acceptance of used fuel from 
                the party to the contract for storage at a facility 
                with respect to which the Secretary has a long-term 
                contract under paragraph (1).
    (c) Effect of Acceptance.--Acceptance of used fuel by the Secretary 
under subsection (b) shall constitute transfer of title to the 
Secretary.
    (d) Priority for Acceptance for Closed Facilities.--If a request 
for fuel acceptance is made under paragraph (2) by a facility that has 
produced used nuclear fuel and that is shut down permanently and the 
facility has been decommissioned, the Secretary shall provide priority 
for the acceptance of the fuel produced by the facility.
    (e) Transportation of Used Fuel.--
            (1) In general.--The Secretary shall provide for the 
        transportation of used fuel accepted by the Secretary under 
        this subsection.
            (2) Systems and components.--
                    (A) In general.--The Secretary shall procure all 
                systems and components necessary to transport used fuel 
                from facilities designated by contract holders to 1 or 
                more storage facilities under this subsection.
                    (B) Casks.--The Secretary shall--
                            (i) use transportation and storage casks 
                        that are approved by the Commission in use at 
                        facilities designated by contract holders; and
                            (ii) compensate the owner and operator of 
                        each facility for the use of the casks.

SEC. 7. FUNDING.

    (a) Contracts and Fees.--Section 302(a) of the Nuclear Waste Policy 
Act of 1982 (42 U.S.C. 10222(a)) is amended--
            (1) in paragraph (2)--
                    (A) by striking ``(2) For'' and inserting the 
                following:
            ``(2) Fee for electricity from civilian nuclear power 
        reactors.--
                    ``(A) In general.--For''; and
                    (B) by adding at the end the following:
                    ``(B) Adjusted fee.--For electricity generated by a 
                civilian nuclear power reactor and sold on or after the 
                date that is 90 days after the date of enactment of the 
                Strengthening Management of Advanced Recycling 
                Technologies Act of 2008, the fee under paragraph (1) 
                shall be 1 mill per kilowatt-hour.''; and
            (2) in paragraph (4)--
                    (A) by designating the first through fifth 
                sentences as subparagraphs (A) through (E), 
                respectively; and
                    (B) by striking subparagraph (E) (as so designated) 
                and inserting the following:
                    ``(E) Effective date of adjusted fee.--The adjusted 
                fee proposed by the Secretary shall be effective on the 
                date a law is enacted approving the proposed adjustment 
                of the Secretary.''.
    (b) Establishment of Nuclear Waste Funds.--Section 302 of the 
Nuclear Waste Policy Act of 1982 (42 U.S.C. 10222) is amended by 
striking subsection (c) and inserting the following:
    ``(c) Establishment of Nuclear Waste Funds.--
            ``(1) Nuclear waste revolving fund.--
                    ``(A) Establishment.--There is established in the 
                Treasury of the United States a separate revolving 
                fund, to be known as the Nuclear Waste Revolving Fund 
                (referred to in this section as the `Waste Fund').
                    ``(B) Contents.--Subject to paragraph (2)(B)(i), 
                the Waste Fund shall consist of--
                            ``(i) all interest realized by the 
                        Secretary under subsection (e), which have been 
                        and shall be deposited in the Waste Fund 
                        immediately on receipt;
                            ``(ii) any appropriation made to the Waste 
                        Fund; and
                            ``(iii) any unexpended balances available 
                        on January 7, 1983, for functions or activities 
                        necessary or incident to the disposal of 
                        civilian high level radioactive waste or 
                        civilian used nuclear fuel, which shall be 
                        transferred to the Waste Fund on the date of 
                        enactment of this subparagraph.
            ``(2) Nuclear waste legacy fund.--
                    ``(A) Establishment.--There is established in the 
                Treasury of the United States a separate fund, to be 
                known as the Nuclear Waste Legacy Fund (referred to in 
                this section as the `Legacy Fund').
                    ``(B) Contents.--The Legacy Fund shall consist of--
                            ``(i) the amount of the corpus minus $1 
                        billion which shall be transferred from the 
                        Waste Fund on the date of enactment of this 
                        subparagraph;
                            ``(ii) fees paid under subsections (a) and 
                        (b); and
                            ``(iii) any appropriations made to the 
                        Legacy Fund.''.
    (c) Authorized Uses of Nuclear Waste Funds.--Section 302(d) of the 
Nuclear Waste Policy Act (42 U.S.C. 10222(d)) is amended in the first 
sentence--
            (1) in the matter preceding paragraph (1), by inserting 
        ``management of used nuclear fuel or'' after ``only for 
        purposes of'';
            (2) in paragraph (5), by striking ``and'' after the 
        semicolon at the end;
            (3) in paragraph (6), by striking ``and 219.'' and 
        inserting ``141, and 219 and section 5 of the Strengthening 
        Management of Advanced Recycling Technologies Act of 2008; 
        and''; and
            (4) by inserting after paragraph (6) the following:
            ``(7) any costs associated with storage and recycling of 
        used nuclear fuel incurred pursuant to sections 3, 4, and 5 of 
        the Strengthening Management of Advanced Recycling Technologies 
        Act of 2008.''.
    (d) Administration of Funds.--Section 302(e) of the Nuclear Waste 
Policy Act of 1982 (42 U.S.C. 10222(e)) is amended--
            (1) by redesignating paragraphs (4) through (6) as 
        paragraphs (6) through (8), respectively; and
            (2) by striking ``(e) Administration of Waste Fund'' and 
        all that follows through the end of paragraph (3) and inserting 
        the following:
    ``(e) Administration of Funds.--
            ``(1) In general.--The Secretary of the Treasury shall 
        maintain the Waste Fund and the Legacy Fund (referred to in 
        this subsection as the `Funds').
            ``(2) Annual reports.--After consultation with the 
        Secretary of the Treasury, the Secretary shall report annually 
        to Congress on the financial condition and operations of the 
        Funds during the preceding fiscal year.
            ``(3) Budget.--
                    ``(A) Submission.--The Secretary shall submit the 
                budget of the Funds to the Office of Management and 
                Budget triennially along with the budget of the 
                Department of Energy submitted in accordance with 
                chapter 11 of title 31, United States Code.
                    ``(B) Administration.--The budget of the Funds 
                shall--
                            ``(i) contain estimates made by the 
                        Secretary of expenditures from the Funds, and 
                        other relevant financial matters, for the 
                        succeeding 3 fiscal years; and
                            ``(ii) be included in the budget for the 
                        United States Government.
            ``(4) Expenditures.--
                    ``(A) Waste fund.--
                            ``(i) In general.--Subject to subsection 
                        (d) and any limitations in appropriations Acts, 
                        the Secretary may make expenditures from the 
                        Waste Fund without further appropriation and 
                        without fiscal year limitation to carry out 
                        this Act.
                            ``(ii) Certain payments.--Notwithstanding 
                        clause (i), the Secretary shall make 
                        expenditures from the Waste Fund to make 
                        payments under contracts and agreements entered 
                        into by the Secretary under sections 4(a), 
                        5(e), and 5(f) of the Strengthening Management 
                        of Advanced Recycling Technologies Act of 2008 
                        without further appropriation and without 
                        fiscal year limitation.
                    ``(B) Legacy fund.--The Secretary may make 
                expenditures from the Legacy Fund, subject to 
                appropriations, to remain available until expended.
            ``(5) Investments.--If the Secretary determines that either 
        of the Funds contains at any time amounts in excess of current 
        needs, the Secretary may request the Secretary of the Treasury 
        to invest such amounts, or any portion of such amounts as the 
        Secretary determines to be appropriate, in obligations of the 
        United States--
                    ``(A) having maturities determined by the Secretary 
                of the Treasury to be appropriate to the needs of the 
                Fund; and
                    ``(B) bearing interest at rates determined to be 
                appropriate by the Secretary of the Treasury, taking 
                into consideration the current average market yield on 
                outstanding marketable obligations of the United States 
                with remaining periods to maturity comparable to the 
                maturities of those investments, except that the 
                interest rate on the investments shall not exceed the 
                average interest rate applicable to existing 
                borrowing.''.
    (e) Conforming Amendments.--
            (1) Section 6 of the Nuclear Waste Policy Act of 1982 (42 
        U.S.C. 10105) is repealed.
            (2) Section 302 of the Nuclear Waste Policy Act of 1982 (42 
        U.S.C. 10222) is amended by striking the section heading and 
        inserting the following: ``nuclear waste funds''.

SEC. 8. WASTE CONFIDENCE.

    For purposes of a determination by the Commission on whether to 
grant, amend, or renew any license under the Atomic Energy Act of 1954 
(42 U.S.C. 2011 et seq.) and this Act, the obligation of the Secretary 
to develop a repository in accordance with the Nuclear Waste Policy Act 
of 1982 (42 U.S.C. 10101 et seq.) shall provide sufficient and 
independent grounds for any further findings by the Commission of 
reasonable assurances that used nuclear fuel and high-level radioactive 
waste would be disposed of safely and in a timely manner.
                                 <all>
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