HR 8674 — Milestones for Advanced Nuclear Fuel Act

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 italics, and existing law in which no 
change is proposed is shown in roman):

 NUCLEAR FUEL SECURITY ACT OF 2023

 DIVISION C--DEPARTMENT OF ENERGY NATIONAL SECURITY AUTHORIZATIONS AND 
 OTHER AUTHORIZATIONS

TITLE XXXI--DEPARTMENT OF ENERGY NATIONAL SECURITY PROGRAMS

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 Subtitle C--Other Matters

SEC. 3131. U.S. NUCLEAR FUEL SECURITY INITIATIVE.

 (a) Short Title.--This section may be cited as the ``Nuclear 
Fuel Security Act of 2023''.
 (b) Sense of Congress.--It is the sense of Congress that--
 (1) the Department should--
 (A) support increased 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.
 (c) Objectives.--The objectives of this section are--
 (1) to support 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, including 
 collaborative research and development activities with 
 other Federal agencies;
 (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.
 (d) 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) National laboratory.--The term ``National 
 Laboratory'' has the meaning given such term in section 
 2 of the Energy Policy Act of 2005 (42 U.S.C. 15801).
 [(8)] (9) Programs.--The term ``Programs'' means--
 (A) the Nuclear Fuel Security Program 
 established under subsection (e)(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 (e)(3).
 [(9)] (10) Secretary.--The term ``Secretary'' means 
 the Secretary of Energy.
 [(10)] (11) 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.
 (e) Establishment and Expansion of Programs.--The Secretary, 
consistent with the objectives described in subsection (c), 
shall--
 (1) establish a program, to be known as the ``Nuclear 
 Fuel Security Program'', to increase the quantity of 
 HALEU and, if determined to be necessary after 
 completion of a market evaluation, LEU 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.
 (f) Nuclear Fuel Security Program.--
 (1) In general.--In carrying out the Nuclear Fuel 
 Security Program, the Secretary--
 (A) shall--
 (i) if determined to be necessary or 
 appropriate based on the completion of 
 a market evaluation, not later than 90 
 days after the date of enactment of 
 this Act, take actions, including cost-
 shared financial agreements, milestone-
 based payments, or other mechanisms, to 
 support commercial availability of LEU 
 and to promote 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 funds are specifically provided 
 for those purposes in advance in 
 appropriations Acts enacted after the 
 date of enactment of this Act; 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.
 (g) 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 (c);
 (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 (c).
 (h) 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 (excluding stockpiles 
 intended for national security needs), 
 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 (e)(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 (e)(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 funds are specifically provided 
 for those purposes in advance in 
 appropriations Acts enacted after the 
 date of enactment of this Act; 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 earlier of--
 (A) 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; and
 (B) September 30, 2034.
 (i) 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 (c).
 (j) Reasonable Compensation.--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.
 (k) 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.
 (l) 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.
 (m) 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 during or prior to fiscal year 2023, 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.
 (n) International Agreements.--This section shall be applied 
in a manner consistent with the obligations of the United 
States under international agreements.
 (o) Report on Civil Nuclear Credit Program.--Not later than 
180 days after the date of enactment of this Act, the Secretary 
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.
 (p) Supply Chain Infrastructure and Workforce Capacity 
Building.--
 (1) Supply chain infrastructure.--Section 10781(b)(1) 
 of Public Law 117-167 (commonly known as the ``CHIPS 
 and Science Act of 2022'') (42 U.S.C. 19351(b)(1)) is 
 amended by striking ``and demonstration of advanced 
 nuclear reactors'' and inserting ``demonstration, and 
 deployment of advanced nuclear reactors and associated 
 supply chain infrastructure''.
 (2) Workforce capacity building.--Section 954(b) of 
 the Energy Policy Act of 2005 (42 U.S.C. 16274(b)) is 
 amended--
 (A) in the subsection heading, by striking 
 ``Graduate'';
 (B) by striking ``graduate'' each place it 
 appears;
 (C) in paragraph (2)(A), by inserting 
 ``community colleges, trade schools, registered 
 apprenticeship programs, pre-apprenticeship 
 programs,'' after ``universities,'';
 (D) in paragraph (3), by striking ``2021 
 through 2025'' and inserting ``2023 through 
 2027'';
 (E) by redesignating paragraph (3) as 
 paragraph (4); and
 (F) by inserting after paragraph (2) the 
 following:
 ``(A) Focus areas.--In carrying out the 
 subprogram under this subsection, the Secretary 
 may implement traineeships in focus areas that, 
 in the determination of the Secretary, are 
 necessary to support the nuclear energy sector 
 in the United States, including--
 ``(i) research and development;
 ``(ii) construction and operation;
 ``(iii) associated supply chains; and
 ``(iv) workforce training and 
 retraining to support transitioning 
 workforces.''.
 (q) Application of Certain Milestone-based Development and 
Demonstration Projects.--
 (1) In general.--The Secretary shall award milestone-
 based advanced fuel cycle technologies development and 
 demonstration projects in accordance with section 9005 
 of the Energy Act of 2020 (42 U.S.C. 7256c; enacted as 
 part of title IX of division Z of the Consolidated 
 Appropriations Act, 2021) in carrying out the Nuclear 
 Fuel Security Program and the HALEU for Advanced 
 Nuclear Reactor Demonstration Projects Program 
 (established pursuant to subsection (e), and carried 
 out in accordance with subsections (f) and (h), 
 respectively) in the same manner and to the same extent 
 as such section 9005 applies to section 846(g) of the 
 Department of Energy Organization Act (42 U.S.C. 
 7256(g)).
 (2) Purpose.--In carrying out milestone-based 
 advanced fuel cycle technologies development and 
 demonstration projects referred to in paragraph (1), 
 the Secretary shall support the development and 
 demonstration of an economically competitive, nuclear 
 fuel supply chain by not later than three years after 
 the date of the enactment of this subsection that 
 includes domestic uranium production, conversion, 
 enrichment, deconversion, and waste reduction for 
 advanced fuels, such as HALEU and other advanced 
 nuclear reactor fuels, for the following:
 (A) Department research, development, and 
 demonstration projects for advanced nuclear 
 reactors, including civilian research and 
 experimental reactors.
 (B) Advanced nuclear reactors.
 (C) Strategic radioactive and stable isotopes 
 producers, such as energy, medical, space-based 
 heating and power, and national security 
 application, and for basic research.
 (D) Interagency and intra-agency partnerships 
 and collaborations, including with the National 
 Laboratories, the Advanced Research Projects 
 Agency-Energy, the National Aeronautics and 
 Space Administration, the Department of 
 Defense, and other relevant Federal and State 
 departments and agencies, as determined 
 appropriate by the Secretary.
 (3) Eligibility.--Any associated entity is eligible 
 to participate in the projects under this subsection if 
 the Secretary has determined such entity has the 
 necessary resources and expertise. In selecting 
 eligible associated entities, the Secretary shall 
 select, to the maximum extent practicable, associated 
 entities that--
 (A) prioritize novel technologies and 
 processes;
 (B) utilize technologies and processes that 
 reduce nonproliferation risks; and
 (C) leverage matching funds from non-Federal 
 sources.
 (4) Requirements.--In carrying out such projects, the 
 Secretary shall consult with developers of advanced 
 nuclear reactors and owners and operators of electric 
 utilities to review proposed technical and financial 
 milestones and assist in the development of such 
 milestones.
 (5) Selection.--For the associated entities selected 
 under this subsection, the following conditions shall 
 apply:
 (A) Consistent with the existing authorities 
 of the Department, the Secretary may terminate 
 an agreement with a selected associated entity 
 for cause during the performance period.
 (B) Support under this subsection may not be 
 used to cover any costs or reimbursement of 
 expenses that are covered by Federal funding 
 provided through other support, including 
 awards.
 (6) Applications.--A project proposal submitted under 
 this subsection shall be evaluated based upon the 
 scientific, technical, and business merits of such 
 proposal, including consideration of waste management 
 benefits, through a peer-review process, which shall 
 include reviewers with appropriate expertise from the 
 private sector, electric utilities, the investment 
 community, and nuclear fuel and supply chain experts.
 (7) Project management.--In carrying out projects 
 under this subsection and assessing the completion of 
 the milestones developed pursuant to paragraph (4), the 
 Secretary shall consult with nuclear fuel and supply 
 experts representing diverse perspectives and 
 professional experiences, including developers of 
 advanced nuclear reactor owners and operators of 
 electric utilities, to ensure a complete and thorough 
 review.
 (8) Annual briefing.--As part of the annual budget 
 request submitted for each fiscal year, the Secretary 
 shall provide the Committee on Science, Space, and 
 Technology of the House of Representatives and the 
 Committee on Energy and Natural Resources of the Senate 
 a briefing describing the selected projects under this 
 subsection during the previous fiscal year, the 
 benefits and drawbacks of milestone-based projects as 
 compared to traditional project structure funding 
 models, and lessons-leaned from project operations.

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 ---------- 

 ENERGY POLICY ACT OF 2005

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TITLE IX--RESEARCH AND DEVELOPMENT

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Subtitle E--Nuclear Energy

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SEC. 953. FUEL CYCLE RESEARCH, DEVELOPMENT, DEMONSTRATION, AND 
 COMMERCIAL APPLICATION.

 (a) Used Nuclear Fuel Research, Development, Demonstration, 
and Commercial Application.--
 (1) In general.--The Secretary shall conduct an 
 advanced fuel cycle research, development, 
 demonstration, and commercial application program to 
 improve fuel cycle performance, minimize environmental 
 and public health and safety impacts, and support a 
 variety of options for used nuclear fuel storage, use, 
 and disposal, including advanced nuclear reactor and 
 non-reactor concepts (such as radioisotope power 
 systems), which may include--
 (A) dry cask storage;
 (B) consolidated interim storage;
 (C) deep geological storage and disposal, 
 including mined repository, and other 
 technologies;
 (D) used nuclear fuel transportation;
 (E) integrated waste management systems;
 (F) vitrification;
 (G) fuel recycling and transmutation 
 technologies, including advanced reprocessing 
 technologies such as electrochemical and molten 
 salt technologies, and advanced redox 
 extraction technologies;
 (H) advanced materials to be used in 
 subparagraphs (A) through (G); and
 (I) other areas as determined by the 
 Secretary.
 (2) Requirements.--In carrying out the program under 
 this subsection, the Secretary shall--
 (A) ensure all activities and designs 
 incorporate state of the art safeguards 
 technologies and techniques to reduce risk of 
 proliferation;
 (B) consult with the Administrator of the 
 National Nuclear Security Administration to 
 integrate safeguards and security by design;
 (C) consider the potential benefits and other 
 impacts of those activities for civilian 
 nuclear applications, environmental health and 
 safety, and national security, including 
 consideration of public consent; and
 (D) consider the economic viability of all 
 activities and designs.
 (3) Authorization of appropriations.--There are 
 authorized to be appropriated to the Secretary to carry 
 out the program under this subsection $60,000,000 for 
 each of fiscal years 2021 through 2025.
 (b) Advanced Fuels.--
 (1) In general.--The Secretary shall conduct an 
 advanced fuels research, development, demonstration, 
 and commercial application program on next-generation 
 light water reactor and advanced reactor fuels that 
 demonstrate the potential for improved--
 (A) performance;
 (B) accident tolerance;
 (C) proliferation resistance;
 (D) use of resources;
 (E) environmental impact; and
 (F) economics.
 (2) Requirements.--In carrying out the program under 
 this subsection, the Secretary shall focus on the 
 development of advanced technology fuels, including 
 fabrication techniques, that offer improved accident-
 tolerance and economic performance with the goal of 
 initial commercial application by December 31, 2025.
 (3) Report.--Not later than 180 days after the date 
 of enactment of this section, the Secretary shall 
 submit to the Committee on Science, Space, and 
 Technology of the House of Representatives and the 
 Committee on Energy and Natural Resources of the Senate 
 a report that describes how the technologies and 
 concepts studied under this program would impact 
 reactor economics, the fuel cycle, operations, safety, 
 proliferation, and the environment.
 (4) Authorization of appropriations.--There are 
 authorized to be appropriated to the Secretary to carry 
 out the program under this subsection $125,000,000 for 
 each of fiscal years 2021 through 2025.
 (c) Milestone-based Demonstrations Projects.--The Secretary 
shall carry out demonstration projects under this section as a 
milestone-based demonstration project in the same manner and to 
the same extent as under section 9005 of the Energy Act of 2020 
(42 U.S.C. 7256c; enacted as part of title IX of division Z of 
the Consolidated Appropriations Act, 2021), with priority 
placed on awarding milestone-based awards to projects that 
increase domestic fabrication and recycling capacity of spent 
nuclear fuel for advanced fuels.
 (d) Report.--Not later than 180 days after the date of the 
date of the enactment of this subsection, the Secretary, acting 
through the Assistant Secretary for Nuclear Energy, shall 
complete and make publicly available a study that analyzes the 
practicability, potential benefits, including relating to waste 
reduction through separation of high- and low-level waste or 
utilization of transuranic materials, and estimated lifecycle 
costs of the following:
 (1) Dedicated recycling facilities, and co-location 
 with other nuclear energy infrastructure, that utilize 
 spent nuclear fuel from existing nuclear reactors and 
 future advanced nuclear reactors into usable nuclear 
 fuel for the following:
 (A) Commercial light water reactors.
 (B) Advanced nuclear reactors.
 (C) Space-based heating and power.
 (D) Research reactors.
 (E) Nuclear battery applications.
 (F) Such other applications as determined 
 appropriate by the Secretary.
 (2) Dedicated recycling facilities, and co-location 
 with other nuclear energy infrastructure, to utilize 
 high-assay low-enriched uranium (HALEU) (as such term 
 is defined in section 2001(d) of the Energy Act of 2020 
 (42 U.S.C. 16281(d)), or other feedstocks, such as 
 uranium and transuranic materials, into usable nuclear 
 fuel for the following:
 (A) Commercial light water reactors.
 (B) Advanced nuclear reactors.
 (C) Space-based power.
 (D) Research reactors.
 (E) Nuclear battery applications.
 (F) Such other applications as determined 
 appropriate by the Secretary.
 (3) Utilizing recycled fuel in advanced nuclear 
 reactors or existing light water reactors as compared 
 to non-recycled fuel.
 (4) Dedicated spent nuclear fuel reprocessing 
 facilities, and co-location with other nuclear energy 
 infrastructure, to extract certain radioactive and 
 stable isotopes needed for domestic and international 
 use, including for the following:
 (A) Advanced nuclear reactors.
 (B) Medical, industrial, space-based power, 
 and nuclear battery applications.
 (C) Such other applications as determined 
 appropriate by the Secretary.
 (5) Commercial associated entities acquiring spent 
 fuel from operating or shutdown reactors and any 
 contract or policy revisions that could better 
 facilitate such transactions.
 (6) Private sector associated entities that take 
 title of spent nuclear fuel from commercial nuclear 
 reactor sites for any of the following:
 (A) Research or reuse.
 (B) Recycling.
 (C) Strategic radioactive or stable isotope 
 extraction.
 (7) Comprehensive cost-benefit analysis associated 
 with spent fuel recycling, including considerations of 
 net reduction in spent fuel inventory, separation of 
 high- and low-level waste with new storage 
 requirements, disposal of byproducts from spent fuel 
 recycling, supply chain impacts, and list of industries 
 that would benefit from spent fuel recycling 
 byproducts.
 (8) Policy, legal, or regulatory changes to support 
 the safe and secure development and deployment of 
 recycling and waste utilizing reactor technologies, and 
 any impacts such changes would have on domestic storage 
 of spent nuclear fuel and disposal through the 
 recycling of spent nuclear fuel.

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