S.Amdt. 6198

1. Adds SEC. 3___. U.S. NUCLEAR FUELS SECURITY INITIATIVE TO REDUCE RELIANCE ON NUCLEAR FUELS FROM RUSSIA AND CHINA at the appropriate place in division C

   Adds a section

   Inserted: SEC. 3___. U.S. NUCLEAR FUELS SECURITY INITIATIVE TO REDUCE RELIANCE ON NUCLEAR FUELS FROM RUSSIA AND CHINA.

   Inserted: (a) Sense of Congress.--It is the sense of Congress that--

   Inserted: (1) the United States and the allies of the United States need to eliminate reliance on the Russian Federation for energy fuels, including all forms of uranium;

   Inserted: (2) the Department should--

   Inserted: (A) prioritize activities to increase domestic production of low-enriched uranium; and

   Inserted: (B) accelerate efforts to establish a domestic high-assay, low-enriched uranium enrichment capability; and

   Inserted: (3) 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--

   Inserted: (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

   Inserted: (B) all viable options for partnering with ally or partner nations to meet those needs and schedules until that time.

   Inserted: (b) Objectives.--The objectives of this section are--

   Inserted: (1) to expeditiously increase domestic production of low-enriched uranium to prevent the reliance of the United States and, to the maximum extent practicable, ally or partner nations on nuclear fuels from--

   Inserted: (A) the Russian Federation;

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   Inserted: (B) the People's Republic of China; and

   Inserted: (C) other countries determined by the Secretary to be insecure supply sources with respect to low-enriched uranium;

   Inserted: (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--

   Inserted: (A) advanced nuclear reactor developers; and

   Inserted: (B) the consortium;

   Inserted: (3) to ensure the availability of domestically produced, converted, and enriched 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;

   Inserted: (4) to address gaps and deficiencies in the domestic production, conversion, enrichment, deconversion, and reduction of uranium by partnering with ally or partner nations if domestic options are not practicable;

   Inserted: (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;

   Inserted: (6) to support enrichment, deconversion, and reduction technology deployed in the United States; and

   Inserted: (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--

   Inserted: (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

   Inserted: (B) all viable options for partnering with ally or partner nations to meet those needs and schedules.

   Inserted: (c) Definitions.--In this section:

   Inserted: (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)).

   Inserted: (2) Ally or partner nation.--The term "ally or partner nation" means--

   Inserted: (A) the Government of any country that is a member of the Organisation for Economic Co-operation and Development;

   Inserted: (B) the Government of the Republic of India; and

   Inserted: (C) the Government of any country designated as an ally or partner nation by the Secretary for purposes of this section.

   Inserted: (3) Associated entity.--The term "associated entity" means an entity that--

   Inserted: (A) is owned, controlled, or dominated by--

   Inserted: (i) an ally or partner nation; or

   Inserted: (ii) an associated individual; or

   Inserted: (B) is organized under the laws of, or otherwise subject to the jurisdiction of, a country described in any of subparagraphs (A) through (C) of paragraph (2), including a corporation that is incorporated in a country described in any of those subparagraphs.

   Inserted: (4) Associated individual.--The term "associated individual" means an alien who is a national of a country described in any of subparagraphs (A) through (C) of paragraph (2).

   Inserted: (5) 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)).

   Inserted: (6) Department.--The term "Department" means the Department of Energy.

   Inserted: (7) 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))).

   Inserted: (8) Low-enriched uranium; leu.--The term "low-enriched uranium" or "LEU" means each of--

   Inserted: (A) low-enriched uranium (as defined in section 3102 of the USEC Privatization Act (42 U.S.C. 2297h)); and

   Inserted: (B) low-enriched uranium (as defined in section 3112A(a) of that Act (42 U.S.C. 2297h-10a(a))).

   Inserted: (9) Programs.--The term "Programs" means--

   Inserted: (A) the Nuclear Fuel Security Program established under subsection (d)(1);

   Inserted: (B) the American Assured Fuel Supply Program of the Department; and

   Inserted: (C) the HALEU for Advanced Nuclear Reactor Demonstration Projects Program established under subsection (d)(3).

   Inserted: (10) Secretary.--The term "Secretary" means the Secretary of Energy.

   Inserted: (11) U.S. nuclear energy company.--The term "U.S. nuclear energy company" means a company that--

   Inserted: (A) is organized under the laws of, or otherwise subject to the jurisdiction of, the United States; and

   Inserted: (B) is involved in the nuclear energy industry.

   Inserted: (d) Establishment and Expansion of Programs.--The Secretary, consistent with the objectives described in subsection (b), shall--

   Inserted: (1) establish a program, to be known as the "Nuclear Fuel Security Program", to prevent the reliance of the United States and, to the maximum extent practicable, ally or partner nations on LEU and HALEU from the Russian Federation and the People's Republic of China by increasing the quantity of LEU and HALEU produced by U.S. nuclear energy companies;

   Inserted: (2) expand the American Assured Fuel Supply Program of the Department to ensure the availability of domestically produced, converted, and enriched uranium in the event of a supply disruption; and

   Inserted: (3) establish a program, to be known as the "HALEU for Advanced Nuclear Reactor Demonstration Projects Program"--

   Inserted: (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

   Inserted: (B) where practicable, to partner with ally or partner nations to meet those needs and schedules until that time.

   Inserted: (e) Nuclear Fuel Security Program.--

   Inserted: (1) In general.--In carrying out the Nuclear Fuel Security Program, the Secretary shall--

   Inserted: (A) 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 diverse domestic uranium mining, conversion, enrichment, deconversion, and reduction capacity and technologies, including new capacity, among U.S. nuclear energy companies;

   Inserted: (B) 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;

   Inserted: (C) utilize only uranium produced, converted, and enriched in--

   Inserted: (i) the United States; or

   Inserted: (ii) if domestic options are not practicable, a country described in any of subparagraphs (A) through (C) of subsection (c)(2);

   Inserted: (D) 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

   Inserted: (E) take other actions that the Secretary determines to be necessary or appropriate to prevent the reliance of the United States and ally or partner nations on nuclear fuels from the Russian Federation and the People's Republic of China.

   Inserted: (2) Considerations.--In carrying out paragraph (1)(B), the Secretary shall consider and, if appropriate, implement--

   Inserted: (A) options to ensure the quickest availability of commercially enriched HALEU, including--

   Inserted: (i) partnerships between 2 or more commercial enrichers; and

   Inserted: (ii) utilization of up to 10-percent enriched uranium as feedstock in demonstration-scale or commercial HALEU enrichment facilities;

   Inserted: (B) options to partner with ally or partner nations to provide LEU and HALEU for commercial purposes;

   Inserted: (C) options that provide for an array of HALEU--

   Inserted: (i) enrichment levels;

   Inserted: (ii) output levels to meet demand; and

   Inserted: (iii) fuel forms, including uranium metal and oxide; and

   Inserted: (D) options--

   Inserted: (i) to replenish, as necessary, Department stockpiles of uranium that was intended to be downblended for other purposes, but was instead used in carrying out activities under the HALEU for Advanced Nuclear Reactor Demonstration Projects Program;

   Inserted: (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

   Inserted: (iii) to make HALEU available to other advanced nuclear reactor developers and other end-users.

   Inserted: (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.

   Inserted: (f) Expansion of the American Assured Fuel Supply Program.--The Secretary, in consultation with U.S. nuclear energy companies, shall--

   Inserted: (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

   Inserted: (2) in carrying out the American Assured Fuel Supply Program of the Department, as expanded under paragraph (1)--

   Inserted: (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);

   Inserted: (B) utilize only uranium produced, converted, and enriched in--

   Inserted: (i) the United States; or

   Inserted: (ii) if domestic options are not practicable, a country described in any of subparagraphs (A) through (C) of subsection (c)(2);

   Inserted: (C) make uranium available from the American Assured Fuel Supply, subject to terms and conditions determined by the Secretary to be reasonable and appropriate;

   Inserted: (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

   Inserted: (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).

   Inserted: (g) HALEU for Advanced Nuclear Reactor Demonstration Projects Program.--

   Inserted: (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.

   Inserted: (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 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--

   Inserted: (A) by September 30, 2024, not less than 3 metric tons of HALEU;

   Inserted: (B) by December 31, 2025, not less than an additional 8 metric tons of HALEU; and

   Inserted: (C) by June 30, 2026, not less than an additional 10 metric tons of HALEU.

   Inserted: (3) Factors for consideration.--In carrying out activities under this subsection, the Secretary shall take into consideration--

   Inserted: (A) options for providing HALEU from a stockpile of uranium owned by the Department (including the National Nuclear Security Administration), including--

   Inserted: (i) uranium that has been declared excess to national security needs;

   Inserted: (ii) uranium that--

   Inserted: (I) directly meets the needs of advanced nuclear reactor developers; but

   Inserted: (II) has been previously used or fabricated for another purpose;

   Inserted: (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;

   Inserted: (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

   Inserted: (v) uranium from stockpiles intended for other purposes, 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;

   Inserted: (B) options for expanding, or establishing new, capabilities or infrastructure to support the processing of uranium from Department inventories, including options that may be mutually beneficial to the Department and to U.S. nuclear energy companies;

   Inserted: (C) options for accelerating the availability of HALEU from HALEU enrichment demonstration projects of the Department;

   Inserted: (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);

   Inserted: (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

   Inserted: (F) options that combine 1 or more of the approaches described in subparagraphs (A) through (E) to meet the deadlines described in paragraph (2).

   Inserted: (4) Limitation.--The Secretary shall not barter or otherwise sell or transfer uranium in any form in exchange for services relating to--

   Inserted: (A) 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

   Inserted: (B) environmental cleanup activities.

   Inserted: (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.

   Inserted: (h) Authority.--In carrying out the Programs, the Secretary, in coordination with the Secretary of State (where applicable)--

   Inserted: (1) may--

   Inserted: (A) in addition to exercising the authority granted to the Secretary under any other provision of law, enter into transactions (other than contracts, cooperative agreements, financial assistance agreements, or the provision of any other financial assistance) with an ally or partner nation, a U.S. nuclear energy company, or any other domestic or foreign entity for any activity to carry out the Programs, including the acquisition or provision of uranium, conversion services, enrichment services, LEU, HALEU, and related goods and services;

   Inserted: (B) notwithstanding section 161 u. of the Atomic Energy Act of 1954 (42 U.S.C. 2201(u)), enter into contracts and other arrangements of such duration as the Secretary determines to be necessary;

   Inserted: (C) make acquisitions for the Programs through the use of competitive selection processes that the Secretary determines to be appropriate to achieve the objectives described in subsection (b) in an expeditious manner;

   Inserted: (D)(i) establish milestones for achieving specified objectives, including the production of LEU and HALEU in quantities and timeframes described in this section; and

   Inserted: (ii) provide awards and other forms of incentives for meeting those milestones; and

   Inserted: (E) provide loan guarantees, other financial assistance, or assistance in the form of revenue guarantees or similar mechanisms; and

   Inserted: (2) shall ensure that amounts charged to the Secretary for the acquisition or provision of uranium, conversion services, enrichment services, LEU, HALEU, and other goods and services under the Programs provide, in the opinion of the Secretary, in consultation with U.S. nuclear energy companies, reasonable compensation, taking into account--

   Inserted: (A) the fair market value of the good or service acquired or provided;

   Inserted: (B) the cost recovery requirements of the consortium; and

   Inserted: (C) the objectives described in subsection (b).

   Inserted: (i) Domestic Sourcing Considerations.--

   Inserted: (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--

   Inserted: (A) the activity promotes manufacturing in the United States associated with uranium supply chains; or

   Inserted: (B) the activity relies on resources, materials, or equipment developed or produced--

   Inserted: (i) in the United States; or

   Inserted: (ii) in a country described in any of subparagraphs (A) through (C) of subsection (c)(2) by--

   Inserted: (I) an ally or partner nation;

   Inserted: (II) an associated entity; or

   Inserted: (III) a U.S. nuclear energy company.

   Inserted: (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).

   Inserted: (j) Reasonable Compensation.--

   Inserted: (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.

   Inserted: (2) Availability of certain funds.--Notwithstanding section 3302 of title 31, United States Code, revenues received from the sale or transfer of fuel feed material and other activities related to making LEU and HALEU available pursuant to this section--

   Inserted: (A) shall be available to the Department for carrying out the purposes of this section, to reduce the need for further appropriations for those purposes; and

   Inserted: (B) shall remain available until expended.

   Inserted: (k) Exclusions.--The Secretary may not carry out an activity in connection with the Programs with an entity that is--

   Inserted: (1) owned or controlled by the Government of the Russian Federation or the Government of the People's Republic of China; or

   Inserted: (2) organized under the laws of, or otherwise subject to the jurisdiction of, the Russian Federation or the People's Republic of China.

   Inserted: (l) 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.

   Inserted: (m) USEC Privatization Act.--

   Inserted: (1) In general.--The requirements of section 3112 of the USEC Privatization Act (42 U.S.C. 2297h-10) shall not apply to activities related to the Programs.

   Inserted: (2) Amendment.--Section 3112A(c)(2)(A) of the USEC Privatization Act (42 U.S.C. 2297h-10a(c)(2)(A)) is amended--

   Inserted: (A) in clause (xii), by inserting "and" after the semicolon at the end;

   Inserted: (B) by striking clauses (xiii) through (xxvii); and

   Inserted: (C) by adding at the end the following:

   Inserted: "(xiii) in calendar year 2026 and each calendar year thereafter, 0 kilograms.".

   Inserted: (n) Prohibition on Importation of Uranium From the Russian Federation and the People's Republic of China.--

   Inserted: (1) In general.--Notwithstanding section 3112A of the USEC Privatization Act (42 U.S.C. 2297h-10a) or any other provision of law, the importation of articles of the Russian Federation or the People's Republic of China classifiable under subheading 2612.10, 2844.10, 2844.20, 2844.30.20, or 2844.30.50 of the Harmonized Tariff Schedule of the United States is prohibited.

   Inserted: (2) Waiver of prohibition.--

   Inserted: (A) In general.--The Secretary may waive the prohibition under paragraph (1) with respect to an article if the Secretary, in consultation with the Secretary of State and the Secretary of Commerce, determines that--

   Inserted: (i) no viable source of alternative supply of the article is available to sustain continued operation of a nuclear reactor in the United States; or

   Inserted: (ii) importation of the article from a country other than the Russian Federation or the People's Republic of China is in the interest of national security.

   Inserted: (B) Notification to congress.--Not later than 60 days before issuing a waiver under subparagraph (A), the Secretary shall notify the Committee on Energy and Natural Resources of the Senate and the Committee on Energy and Commerce of the House of Representatives of the intent to issue the waiver, including a justification for the waiver.

   Inserted: (C) Expiration of waiver authority.--The authority provided to the Secretary under subparagraph (A) expires on December 31, 2025.

   Inserted: (3) Effective date.--Paragraph (1) applies with respect to articles entered, or withdrawn from warehouse for consumption, on or after the date that is 45 days after the date of enactment of this Act.

   Inserted: (o) Authorization of Appropriations.--In addition to amounts otherwise available, there are authorized to be appropriated to the Secretary--

   Inserted: (1) for the Nuclear Fuel Security Program, $3,500,000,000 for fiscal year 2023, to remain available until September 30, 2031, of which the Secretary may use $1,000,000,000 by September 30, 2028, to carry out the HALEU for Advanced Nuclear Reactor Demonstration Projects Program; and

   Inserted: (2) for the American Assured Fuel Supply Program of the Department, as expanded under this section, such sums as are necessary for the period of fiscal years 2023 through 2030, to remain available until September 30, 2031.

   Inserted: SEC. 3___. ISOTOPE DEMONSTRATION AND ADVANCED NUCLEAR RESEARCH INFRASTRUCTURE ENHANCEMENT.

   Inserted: (a) Evaluation and Establishment of Isotope Demonstration Program.--Section 952(a)(2)(A) of the Energy Policy Act of 2005 (42 U.S.C. 16272(a)(2)(A)) is amended by striking "shall evaluate the technical and economic feasibility of the establishment of" and inserting "shall evaluate the technical and economic feasibility of, and, if feasible, is authorized to establish,".

   Inserted: (b) Advanced Nuclear Research Infrastructure Enhancement.--Section 954(a)(5) of the Energy Policy Act of 2005 (42 U.S.C. 16274(a)(5)) is amended--

   Inserted: (1) by redesignating subparagraph (E) as subparagraph (F); and

   Inserted: (2) by inserting after subparagraph (D) the following:

   Inserted: "(E) Fuel services.--The Secretary shall expand the Research Reactor Infrastructure subprogram of the Radiological Facilities Management program of the Department carried out under paragraph (6) to provide fuel services to research reactors established under this paragraph.".

   Inserted: SEC. 3___. REPORT ON CIVIL NUCLEAR CREDIT PROGRAM.

   Inserted: 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--

   Inserted: (1) the zero-emission nuclear power production credit authorized by section 45U of the Internal Revenue Code of 1986; and

   Inserted: (2) any increased fuel costs associated with the use of domestic fuel that may arise from the implementation of that program.

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   Original wording

   At the appropriate place in division C, insert the following:

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