Nuclear Fuel Security Act of 2023

Subjects: Energy


<html><body><pre>[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 452 Introduced in Senate (IS)]

&lt;DOC&gt;






118th CONGRESS
  1st Session
                                 S. 452

To require the Secretary of Energy to establish a Nuclear Fuel Security 
Program, expand the American Assured Fuel Supply Program, and submit a 
   report on a civil nuclear credit program, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           February 15, 2023

 Mr. Manchin (for himself, Mr. Barrasso, and Mr. Risch) 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 establish a Nuclear Fuel Security 
Program, expand the American Assured Fuel Supply Program, and submit a 
   report on a civil nuclear credit program, 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 ``Nuclear Fuel Security Act of 2023''.

SEC. 2. U.S. NUCLEAR FUEL SECURITY INITIATIVE.

    (a) Sense of Congress.--It is the sense of Congress that--
            (1) the Department should--
                    (A) prioritize activities to increase domestic 
                production of low-enriched uranium; and
                    (B) accelerate efforts to establish a domestic 
                high-assay, low-enriched uranium enrichment capability; 
                and
            (2) if domestic enrichment of high-assay, low-enriched 
        uranium will not be commercially available at the scale needed 
        in time to meet the needs of the advanced nuclear reactor 
        demonstration projects of the Department, the Secretary shall 
        consider and implement, as necessary--
                    (A) all viable options to make high-assay, low-
                enriched uranium produced from inventories owned by the 
                Department available in a manner that is sufficient to 
                maximize the potential for the Department to meet the 
                needs and schedules of advanced nuclear reactor 
                developers, without impacting existing Department 
                missions, until such time that commercial enrichment 
                and deconversion capability for high-assay, low-
                enriched uranium exists at a scale sufficient to meet 
                future needs; and
                    (B) all viable options for partnering with 
                countries that are allies or partners of the United 
                States to meet those needs and schedules until that 
                time.
    (b) Objectives.--The objectives of this section are--
            (1) to expeditiously increase domestic production of low-
        enriched uranium;
            (2) to expeditiously increase domestic production of high-
        assay, low-enriched uranium by an annual quantity, and in such 
        form, determined by the Secretary to be sufficient to meet the 
        needs of--
                    (A) advanced nuclear reactor developers; and
                    (B) the consortium;
            (3) to ensure the availability of domestically produced, 
        converted, enriched, deconverted, and reduced uranium in a 
        quantity determined by the Secretary, in consultation with U.S. 
        nuclear energy companies, to be sufficient to address a 
        reasonably anticipated supply disruption;
            (4) to address gaps and deficiencies in the domestic 
        production, conversion, enrichment, deconversion, and reduction 
        of uranium by partnering with countries that are allies or 
        partners of the United States if domestic options are not 
        practicable;
            (5) to ensure that, in the event of a supply disruption in 
        the nuclear fuel market, a reserve of nuclear fuels is 
        available to serve as a backup supply to support the nuclear 
        nonproliferation and civil nuclear energy objectives of the 
        Department;
            (6) to support enrichment, deconversion, and reduction 
        technology deployed in the United States; and
            (7) to ensure that, until such time that domestic 
        enrichment and deconversion of high-assay, low-enriched uranium 
        is commercially available at the scale needed to meet the needs 
        of advanced nuclear reactor developers, the Secretary considers 
        and implements, as necessary--
                    (A) all viable options to make high-assay, low-
                enriched uranium produced from inventories owned by the 
                Department available in a manner that is sufficient to 
                maximize the potential for the Department to meet the 
                needs and schedules of advanced nuclear reactor 
                developers; and
                    (B) all viable options for partnering with 
                countries that are allies or partners of the United 
                States to meet those needs and schedules.
    (c) Definitions.--In this section:
            (1) Advanced nuclear reactor.--The term ``advanced nuclear 
        reactor'' has the meaning given the term in section 951(b) of 
        the Energy Policy Act of 2005 (42 U.S.C. 16271(b)).
            (2) Associated entity.--The term ``associated entity'' 
        means an entity that--
                    (A) is owned, controlled, or dominated by--
                            (i) the government of a country that is an 
                        ally or partner of the United States; or
                            (ii) an associated individual; or
                    (B) is organized under the laws of, or otherwise 
                subject to the jurisdiction of, a country that is an 
                ally or partner of the United States, including a 
                corporation that is incorporated in such a country.
            (3) Associated individual.--The term ``associated 
        individual'' means an alien who is a national of a country that 
        is an ally or partner of the United States.
            (4) Consortium.--The term ``consortium'' means the 
        consortium established under section 2001(a)(2)(F) of the 
        Energy Act of 2020 (42 U.S.C. 16281(a)(2)(F)).
            (5) Department.--The term ``Department'' means the 
        Department of Energy.
            (6) High-assay, low-enriched uranium; haleu.--The term 
        ``high-assay, low-enriched uranium'' or ``HALEU'' means high-
        assay low-enriched uranium (as defined in section 2001(d) of 
        the Energy Act of 2020 (42 U.S.C. 16281(d))).
            (7) Low-enriched uranium; leu.--The term ``low-enriched 
        uranium'' or ``LEU'' means each of--
                    (A) low-enriched uranium (as defined in section 
                3102 of the USEC Privatization Act (42 U.S.C. 2297h)); 
                and
                    (B) low-enriched uranium (as defined in section 
                3112A(a) of that Act (42 U.S.C. 2297h-10a(a))).
            (8) Programs.--The term ``Programs'' means--
                    (A) the Nuclear Fuel Security Program established 
                under subsection (d)(1);
                    (B) the American Assured Fuel Supply Program of the 
                Department; and
                    (C) the HALEU for Advanced Nuclear Reactor 
                Demonstration Projects Program established under 
                subsection (d)(3).
            (9) Secretary.--The term ``Secretary'' means the Secretary 
        of Energy.
            (10) U.S. nuclear energy company.--The term ``U.S. nuclear 
        energy company'' means a company that--
                    (A) is organized under the laws of, or otherwise 
                subject to the jurisdiction of, the United States; and
                    (B) is involved in the nuclear energy industry.
    (d) Establishment and Expansion of Programs.--The Secretary, 
consistent with the objectives described in subsection (b), shall--
            (1) establish a program, to be known as the ``Nuclear Fuel 
        Security Program'', to increase the quantity of LEU and HALEU 
        produced by U.S. nuclear energy companies;
            (2) expand the American Assured Fuel Supply Program of the 
        Department to ensure the availability of domestically produced, 
        converted, enriched, deconverted, and reduced uranium in the 
        event of a supply disruption; and
            (3) establish a program, to be known as the ``HALEU for 
        Advanced Nuclear Reactor Demonstration Projects Program''--
                    (A) to maximize the potential for the Department to 
                meet the needs and schedules of advanced nuclear 
                reactor developers until such time that commercial 
                enrichment and deconversion capability for HALEU exists 
                in the United States at a scale sufficient to meet 
                future needs; and
                    (B) where practicable, to partner with countries 
                that are allies or partners of the United States to 
                meet those needs and schedules until that time.
    (e) Nuclear Fuel Security Program.--
            (1) In general.--In carrying out the Nuclear Fuel Security 
        Program, the Secretary--
                    (A) shall--
                            (i) not later than 180 days after the date 
                        of enactment of this Act, enter into 2 or more 
                        contracts to begin acquiring not less than 100 
                        metric tons per year of LEU by December 31, 
                        2026 (or the earliest operationally feasible 
                        date thereafter), to ensure diversity of supply 
                        in domestic uranium mining, conversion, 
                        enrichment, and deconversion capacity and 
                        technologies, including new capacity, among 
                        U.S. nuclear energy companies;
                            (ii) not later than 180 days after the date 
                        of enactment of this Act, enter into 2 or more 
                        contracts with members of the consortium to 
                        begin acquiring not less than 20 metric tons 
                        per year of HALEU by December 31, 2027 (or the 
                        earliest operationally feasible date 
                        thereafter), from U.S. nuclear energy 
                        companies;
                            (iii) utilize only uranium produced, 
                        converted, enriched, deconverted, and reduced 
                        in--
                                    (I) the United States; or
                                    (II) if domestic options are not 
                                practicable, a country that is an ally 
                                or partner of the United States; and
                            (iv) to the maximum extent practicable, 
                        ensure that the use of domestic uranium 
                        utilized as a result of that program does not 
                        negatively affect the economic operation of 
                        nuclear reactors in the United States; and
                    (B)(i) may not make commitments under this 
                subsection (including cooperative agreements (used in 
                accordance with section 6305 of title 31, United States 
                Code), purchase agreements, guarantees, leases, service 
                contracts, or any other type of commitment) for the 
                purchase or other acquisition of HALEU or LEU unless--
                            (I) funds are specifically provided for 
                        those purposes in advance in appropriations 
                        Acts enacted after the date of enactment of 
                        this Act; or
                            (II) the commitment is funded entirely by 
                        funds made available to the Secretary from the 
                        account described in subsection (i)(2)(B); and
                    (ii) may make a commitment described in clause (i) 
                only--
                            (I) if the full extent of the anticipated 
                        costs stemming from the commitment is recorded 
                        as an obligation at the time that the 
                        commitment is made; and
                            (II) to the extent of that up-front 
                        obligation recorded in full at that time.
            (2) Considerations.--In carrying out paragraph (1)(A)(ii), 
        the Secretary shall consider and, if appropriate, implement--
                    (A) options to ensure the quickest availability of 
                commercially enriched HALEU, including--
                            (i) partnerships between 2 or more 
                        commercial enrichers; and
                            (ii) utilization of up to 10-percent 
                        enriched uranium as feedstock in demonstration-
                        scale or commercial HALEU enrichment 
                        facilities;
                    (B) options to partner with countries that are 
                allies or partners of the United States to provide LEU 
                and HALEU for commercial purposes;
                    (C) options that provide for an array of HALEU--
                            (i) enrichment levels;
                            (ii) output levels to meet demand; and
                            (iii) fuel forms, including uranium metal 
                        and oxide; and
                    (D) options--
                            (i) to replenish, as necessary, Department 
                        stockpiles of uranium that were intended to be 
                        downblended for other purposes, but were 
                        instead used in carrying out activities under 
                        the HALEU for Advanced Nuclear Reactor 
                        Demonstration Projects Program;
                            (ii) to continue supplying HALEU to meet 
                        the needs of the recipients of an award made 
                        pursuant to the funding opportunity 
                        announcement of the Department numbered DE-FOA-
                        0002271 for Pathway 1, Advanced Reactor 
                        Demonstrations; and
                            (iii) to make HALEU available to other 
                        advanced nuclear reactor developers and other 
                        end-users.
            (3) Avoidance of market disruptions.--In carrying out the 
        Nuclear Fuel Security Program, the Secretary, to the extent 
        practicable and consistent with the purposes of that program, 
        shall not disrupt or replace market mechanisms by competing 
        with U.S. nuclear energy companies.
    (f) Expansion of the American Assured Fuel Supply Program.--The 
Secretary, in consultation with U.S. nuclear energy companies, shall--
            (1) expand the American Assured Fuel Supply Program of the 
        Department by merging the operations of the Uranium Reserve 
        Program of the Department with the American Assured Fuel Supply 
        Program; and
            (2) in carrying out the American Assured Fuel Supply 
        Program of the Department, as expanded under paragraph (1)--
                    (A) maintain, replenish, diversify, or increase the 
                quantity of uranium made available by that program in a 
                manner determined by the Secretary to be consistent 
                with the purposes of that program and the objectives 
                described in subsection (b);
                    (B) utilize only uranium produced, converted, 
                enriched, deconverted, and reduced in--
                            (i) the United States; or
                            (ii) if domestic options are not 
                        practicable, a country that is an ally or 
                        partner of the United States;
                    (C) make uranium available from the American 
                Assured Fuel Supply, subject to terms and conditions 
                determined by the Secretary to be reasonable and 
                appropriate;
                    (D) refill and expand the supply of uranium in the 
                American Assured Fuel Supply, including by maintaining 
                a limited reserve of uranium to address a potential 
                event in which a domestic or foreign recipient of 
                uranium experiences a supply disruption for which 
                uranium cannot be obtained through normal market 
                mechanisms or under normal market conditions; and
                    (E) take other actions that the Secretary 
                determines to be necessary or appropriate to address 
                the purposes of that program and the objectives 
                described in subsection (b).
    (g) HALEU for Advanced Nuclear Reactor Demonstration Projects 
Program.--
            (1) Activities.--On enactment of this Act, the Secretary 
        shall immediately accelerate and, as necessary, initiate 
        activities to make available from inventories or stockpiles 
        owned by the Department and made available to the consortium, 
        HALEU for use in advanced nuclear reactors that cannot operate 
        on uranium with lower enrichment levels or on alternate fuels, 
        with priority given to the awards made pursuant to the funding 
        opportunity announcement of the Department numbered DE-FOA-
        0002271 for Pathway 1, Advanced Reactor Demonstrations, with 
        additional HALEU to be made available to other advanced nuclear 
        reactor developers, as the Secretary determines to be 
        appropriate.
            (2) Quantity.--In carrying out activities under this 
        subsection, the Secretary shall consider and implement, as 
        necessary, all viable options to make HALEU available in 
        quantities and forms sufficient to maximize the potential for 
        the Department to meet the needs and schedules of advanced 
        nuclear reactor developers, including by seeking to make 
        available--
                    (A) by September 30, 2024, not less than 3 metric 
                tons of HALEU;
                    (B) by December 31, 2025, not less than an 
                additional 8 metric tons of HALEU; and
                    (C) by June 30, 2026, not less than an additional 
                10 metric tons of HALEU.
            (3) Factors for consideration.--In carrying out activities 
        under this subsection, the Secretary shall take into 
        consideration--
                    (A) options for providing HALEU from a stockpile of 
                uranium owned by the Department, including--
                            (i) uranium that has been declared excess 
                        to national security needs during or prior to 
                        fiscal year 2023;
                            (ii) uranium that--
                                    (I) directly meets the needs of 
                                advanced nuclear reactor developers; 
                                but
                                    (II) has been previously used or 
                                fabricated for another purpose;
                            (iii) uranium that can meet the needs of 
                        advanced nuclear reactor developers after 
                        removing radioactive or other contaminants that 
                        resulted from previous use or fabrication of 
                        the fuel for research, development, 
                        demonstration, or deployment activities of the 
                        Department, including activities that reduce 
                        the environmental liability of the Department 
                        by accelerating the processing of uranium from 
                        stockpiles designated as waste;
                            (iv) uranium from a high-enriched uranium 
                        stockpile, which can be blended with lower 
                        assay uranium to become HALEU to meet the needs 
                        of advanced nuclear reactor developers; and
                            (v) uranium from stockpiles intended for 
                        other purposes (excluding stockpiles intended 
                        for national security needs), but for which 
                        uranium could be swapped or replaced in time in 
                        such a manner that would not negatively impact 
                        the missions of the Department;
                    (B) options for expanding, or establishing new, 
                capabilities or infrastructure to support the 
                processing of uranium from Department inventories;
                    (C) options for accelerating the availability of 
                HALEU from HALEU enrichment demonstration projects of 
                the Department;
                    (D) options for providing HALEU from domestically 
                enriched HALEU procured by the Department through a 
                competitive process pursuant to the Nuclear Fuel 
                Security Program established under subsection (d)(1);
                    (E) options to replenish, as needed, Department 
                stockpiles of uranium made available pursuant to 
                subparagraph (A) with domestically enriched HALEU 
                procured by the Department through a competitive 
                process pursuant to the Nuclear Fuel Security Program 
                established under subsection (d)(1); and
                    (F) options that combine 1 or more of the 
                approaches described in subparagraphs (A) through (E) 
                to meet the deadlines described in paragraph (2).
            (4) Limitations.--
                    (A) Certain services.--The Secretary shall not 
                barter or otherwise sell or transfer uranium in any 
                form in exchange for services relating to--
                            (i) the final disposition of radioactive 
                        waste from uranium that is the subject of a 
                        contract for sale, resale, transfer, or lease 
                        under this subsection; or
                            (ii) environmental cleanup activities.
                    (B) Certain commitments.--In carrying out 
                activities under this subsection, the Secretary--
                            (i) may not make commitments under this 
                        subsection (including cooperative agreements 
                        (used in accordance with section 6305 of title 
                        31, United States Code), purchase agreements, 
                        guarantees, leases, service contracts, or any 
                        other type of commitment) for the purchase or 
                        other acquisition of HALEU or LEU unless--
                                    (I) funds are specifically provided 
                                for those purposes in advance in 
                                appropriations Acts enacted after the 
                                date of enactment of this Act; or
                                    (II) the commitment is funded 
                                entirely by funds made available to the 
                                Secretary from the account described in 
                                subsection (i)(2)(B); and
                            (ii) may make a commitment described in 
                        clause (i) only--
                                    (I) if the full extent of the 
                                anticipated costs stemming from the 
                                commitment is recorded as an obligation 
                                at the time that the commitment is 
                                made; and
                                    (II) to the extent of that up-front 
                                obligation recorded in full at that 
                                time.
            (5) Sunset.--The authority of the Secretary to carry out 
        activities under this subsection shall terminate on the date on 
        which the Secretary notifies Congress that the HALEU needs of 
        advanced nuclear reactor developers can be fully met by 
        commercial HALEU suppliers in the United States, as determined 
        by the Secretary, in consultation with U.S. nuclear energy 
        companies.
    (h) Domestic Sourcing Considerations.--
            (1) In general.--Except as provided in paragraph (2), the 
        Secretary may only carry out an activity in connection with 1 
        or more of the Programs if--
                    (A) the activity promotes manufacturing in the 
                United States associated with uranium supply chains; or
                    (B) the activity relies on resources, materials, or 
                equipment developed or produced--
                            (i) in the United States; or
                            (ii) in a country that is an ally or 
                        partner of the United States by--
                                    (I) the government of that country;
                                    (II) an associated entity; or
                                    (III) a U.S. nuclear energy 
                                company.
            (2) Waiver.--The Secretary may waive the requirements of 
        paragraph (1) with respect to an activity if the Secretary 
        determines a waiver to be necessary to achieve 1 or more of the 
        objectives described in subsection (b).
    (i) Reasonable Compensation.--
            (1) In general.--In carrying out activities under this 
        section, the Secretary shall ensure that any LEU and HALEU made 
        available by the Secretary under 1 or more of the Programs is 
        subject to reasonable compensation, taking into account the 
        fair market value of the LEU or HALEU and the purposes of this 
        section.
            (2) Availability of certain funds.--
                    (A) In general.--Notwithstanding section 3302(b) of 
                title 31, United States Code, revenues received by the 
                Secretary from the sale or transfer of fuel feed 
                material acquired by the Secretary pursuant to a 
                contract entered into under clause (i) or (ii) of 
                subsection (e)(1)(A) shall--
                            (i) be deposited in the account described 
                        in subparagraph (B);
                            (ii) be available to the Secretary for 
                        carrying out the purposes of this section, to 
                        reduce the need for further appropriations for 
                        those purposes; and
                            (iii) remain available until expended.
                    (B) Revolving fund.--There is established in the 
                Treasury an account into which the revenues described 
                in subparagraph (A) shall be--
                            (i) deposited in accordance with clause (i) 
                        of that subparagraph; and
                            (ii) made available in accordance with 
                        clauses (ii) and (iii) of that subparagraph.
    (j) Nuclear Regulatory Commission.--The Nuclear Regulatory 
Commission shall prioritize and expedite consideration of any action 
related to the Programs to the extent permitted under the Atomic Energy 
Act of 1954 (42 U.S.C. 2011 et seq.) and related statutes.
    (k) USEC Privatization Act.--The requirements of section 3112(d)(2) 
of the USEC Privatization Act (42 U.S.C. 2297h-10(d)(2)) shall not 
apply to activities related to the Programs.
    (l) National Security Needs.--The Secretary shall only make 
available to a member of the consortium under this section for 
commercial use or use in a demonstration project material that the 
President has determined is not necessary for national security needs, 
subject to the condition that the material made available shall not 
include any material that the Secretary determines to be necessary for 
the National Nuclear Security Administration or any critical mission of 
the Department.
    (m) International Agreements.--This section shall be applied in a 
manner consistent with the obligations of the United States under 
international agreements.
    (n) Authorization of Appropriations.--In addition to amounts 
otherwise available, there are authorized to be appropriated to the 
Secretary to carry out activities under this section $3,500,000,000 for 
fiscal year 2023, to remain available until September 30, 2032, of 
which the Secretary may use up to $1,000,000,000 by September 30, 2028, 
to carry out the HALEU for Advanced Nuclear Reactor Demonstration 
Projects Program.

SEC. 3. REPORT ON CIVIL NUCLEAR CREDIT PROGRAM.

    Not later than 180 days after the date of enactment of this Act, 
the Secretary of Energy shall submit to the appropriate committees of 
Congress a report that identifies the anticipated funding requirements 
for the civil nuclear credit program described in section 40323 of the 
Infrastructure Investment and Jobs Act (42 U.S.C. 18753), taking into 
account--
            (1) the zero-emission nuclear power production credit 
        authorized by section 45U of the Internal Revenue Code of 1986; 
        and
            (2) any increased fuel costs associated with the use of 
        domestic fuel that may arise from the implementation of that 
        program.
                                 &lt;all&gt;
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