To amend the Atomic Energy Act of 1954 to improve and strengthen the safety inspection process of nuclear facilities.

SECTION 1. INDEPENDENT SAFETY ASSESSMENTS.

    Section 103 of the Atomic Energy Act of 1954 (42 U.S.C. 2133) is 
amended by inserting after subsection d. the following:
    ``e. Independent Safety Assessments.--
            ``(1) Development of procedure.--Not later than 90 days 
        after the date of enactment of this subsection, the Nuclear 
        Regulatory Commission (referred to in this subsection as the 
        `Commission') shall develop an independent safety assessment 
        procedure.
            ``(2) Conduct of assessment.--
                    ``(A) Definition of eligible requestor.--In this 
                paragraph, the term `eligible requestor' means--
                            ``(i) a Governor of a State in which a 
                        facility of a licensee is located;
                            ``(ii) a public utility commission of a 
                        State in which a facility of a licensee is 
                        located; and
                            ``(iii) a Governor of a State that--
                                    ``(I) because of dangers to the 
                                public relating to potential ingestion 
                                of water or foods that have been 
                                contaminated with radiation from a 
                                commercial nuclear power plant, is 
                                located in an emergency planning zone, 
                                as defined in section 350.2 of title 
                                44, Code of Federal Regulations (or a 
                                successor regulation); and
                                    ``(II) is not the same State in 
                                which the facility of the licensee is 
                                located.
                    ``(B) Request of assessment.--
                            ``(i) In general.--At the request of an 
                        eligible requestor, the Commission shall 
                        conduct an independent safety assessment in 
                        accordance with the independent safety 
                        assessment procedure developed under paragraph 
                        (1) if the licensee has--
                                    ``(I) applied to the Commission 
                                for--
                                            ``(aa) an extension of the 
                                        operating license of the 
                                        licensee; or
                                            ``(bb) approval of an 
                                        extended power uprate for the 
                                        licensee; or
                                    ``(II) during any 5-year period, 
                                received, under the reactor oversight 
                                process of the Commission, 2 or more 
                                greater-than-green inspection findings.
                            ``(ii) Conduct of assessment.--The 
                        Commission shall conduct an assessment 
                        requested by an eligible requestor under clause 
                        (i) not later than 18 months after the date on 
                        which the eligible requestor requested the 
                        assessment.
            ``(3) Inspection of facility.--
                    ``(A) In general.--In conducting an independent 
                safety assessment under paragraph (2)(B), the 
                Commission shall inspect the design, construction, 
                maintenance, and operational safety performance of the 
                facility of the licensee.
                    ``(B) Scope of inspection.--An inspection of a 
                facility of a licensee conducted under subparagraph (A) 
                shall--
                            ``(i) be at least equal in scope, depth, 
                        and breadth to the independent safety 
                        assessment conducted in 1996 by the Commission 
                        of the Maine Yankee Nuclear Power Plant, 
                        located in Wiscasset, Maine; and
                            ``(ii) include an examination of the 
                        systems of the facility of the licensee, 
                        including--
                                    ``(I) the reactor containment 
                                systems;
                                    ``(II) the reactor emergency core 
                                cooling systems;
                                    ``(III) the control room and 
                                containment ventilation systems;
                                    ``(IV) the electrical system 
                                (including testing of relevant 
                                transients);
                                    ``(V) the condensate and feedwater 
                                systems;
                                    ``(VI) the spent fuel storage 
                                systems;
                                    ``(VII) any other system requested 
                                by the Governor of the State, or a 
                                public utility commission of the State, 
                                in which the facility of the licensee 
                                is located; and
                                    ``(VIII) any other system 
                                identified by a majority of the members 
                                of an inspection team described in 
                                paragraph (4).
            ``(4) Inspection teams.--
                    ``(A) In general.--An independent safety assessment 
                conducted under paragraph (2)(B) shall be conducted by 
                an inspection team.
                    ``(B) Composition.--An inspection team shall be 
                composed of not less than 25 members, of whom--
                            ``(i) not less than 16 members shall be--
                                    ``(I) employees of the Commission; 
                                and
                                    ``(II) unaffiliated with the 
                                regional office of the Commission in 
                                the region in which the facility of the 
                                licensee is located;
                            ``(ii) not less than 6 members shall be 
                        independent contractors who have not worked 
                        for, or at--
                                    ``(I) the facility of the licensee; 
                                or
                                    ``(II) any other nuclear power 
                                plant owned or operated by the owner or 
                                operator of the facility of the 
                                licensee; and
                            ``(iii) not less than 3 members shall be 
                        appointed by the eligible requestor.
            ``(5) Report.--
                    ``(A) Preparation of preliminary report.--Not later 
                than 90 days after the date on which an inspection team 
                completes an independent safety assessment of a 
                facility of a licensee under paragraph (2)(B), the 
                inspection team shall prepare a preliminary report 
                describing the findings and recommendations of the 
                inspection team.
                    ``(B) Availability of preliminary report.--For a 
                period of 90 days beginning on the date on which the 
                inspection team completes a preliminary report prepared 
                under subparagraph (A), the inspection team shall make 
                available for review and comment by the public a copy 
                of the preliminary report.
                    ``(C) Consideration of comments.--In preparing a 
                final version of a preliminary report developed under 
                subparagraph (A), the inspection team shall take into 
                consideration any comments received from the public 
                that are appropriate, as determined by the inspection 
                team.
                    ``(D) Submission of final version.--Not later than 
                90 days after the date on which the period of review 
                and public comment ends under subparagraph (B), the 
                inspection team shall submit to the Commission a final 
                version of the preliminary report developed under 
                subparagraph (A).
            ``(6) Affect on licensing actions.--A final decision by the 
        Commission of whether to extend an operating license, approve 
        an extended power uprate, or continue to operate under a 
        license at a facility of a licensee assessed under paragraph 
        (2)(B) shall not be made until the later of the date on which--
                    ``(A) the Commission has completed the independent 
                safety assessment of the facility of the licensee; and
                    ``(B) the licensee has fully accepted and 
                implemented each finding and recommendation of the 
                report approved by the Commission relating to the 
                independent safety assessment of the facility of the 
                licensee submitted under paragraph (5)(D).
            ``(7) Authorization of appropriations.--There are 
        authorized to be appropriated to carry out this subsection 
        $10,000,000 for each of fiscal years 2008 through 2012, to 
        remain available until expended.''.

Summary: Amends the Atomic Energy Act of 1954 to direct the Nuclear Regulatory Commission (NRC) to: (1) develop an independent safety assessment procedure for nuclear facilities; and (2) create a team to inspect the design, construction, maintenance, and operational safety performance of a facility.

Declares that a final NRC decision on whether to extend an operating license, approve an extended power uprate, or continue to operate a facility shall not be made until: (1) the NRC has completed the independent safety assessment of the facility; and (2) the licensee has fully accepted and implemented each NRC-approved finding and recommendation of the assessment report