The House of Representatives quickly passed HR 1551 Tuesday, after its approval out of committee last week.  This bill represents a bipartisan effort to promote nuclear power development in the United States by removing the deadline on the nuclear Production Tax Credit, and allowing tax credits to be transferred in certain cases.  The text of the bill can be found here.

If there are any questions on the legislation, please contact the authors.

Both Congress and the U.S. Department of Energy (DOE) moved forward last week with significant programs to support the development of nuclear power in the United States. Congress took a critical step towards extending the Production Tax Credit (PTC) for nuclear power, and DOE announced nearly $67 million in new grants for nuclear power research.

On Thursday June 15, 2017, the House Committee on Ways and Means approved H.R. 1551, legislation designed to essentially remove the deadline on eligibility for the nuclear PTC. This bill is not only very important for the four AP1000 nuclear reactors under construction in Georgia and South Carolina, but potentially also for next-generation nuclear plants. These plants can take advantage of the remaining credits left over after the AP1000 projects are completed (from the 6,000 MW available under the current tax credit); the credits would normally expire on January 1, 2021. The bill can be found here.

The day before, on Wednesday June 14, DOE announced nearly $67 million in grants awarded towards advanced nuclear energy research from a series of funding programs. The grants include:

  • $37 million under the “Nuclear Energy University Program” to support “university-led nuclear energy research and development projects” and also fund “reactor and infrastructure improvements” towards the nation’s 25 university research reactors;
  • $11 million towards three “Integrated Research Projects,” which are complex research projects led by a coalition of “universities, industrial and international research entities, and the unique resources of the DOE national laboratories”;
  • $6 million in research towards “advanced sensors and instrumentation, advanced manufacturing methods, and materials for multiple nuclear reactor plant and fuel applications”; and
  • $12+ million towards projects taking advantage of “Nuclear Science User Facilities” to “investigate important nuclear fuel and material applications.” Five of these projects are industry-led and thus take advantage of the GAIN Initiative, which provides industry with a means to access facilities and resources “across the DOE complex and its National Laboratory capabilities.”

If you have any questions about the nuclear PTC or DOE research programs, please contact the authors.

Published reports indicate that as many as 18 reactor designers are looking at the possibility of siting their first facility at Idaho National Laboratory, DOE’s lead laboratory for nuclear reactors. From time to time, there are similar expressions of interest in DOE’s Oak Ridge National Laboratory and Savannah River Site.

DOE facilities have much to recommend them for such an undertaking, including incredible nuclear expertise near-at-hand, locations that are both remote and friendly to nuclear undertakings, and plenty of open space. At the same time, it is important to recognize the unique challenges that come with such sites.

Entering into a site use permit with DOE requires an understanding of certain “immovables,” including: DOE mission requirements, present and future; DOE obligations to state regulators, particularly environmental regulators; past uses of the sites that may not yet be remediated, such as environmental contamination or unexploded ordnance; and appropriations law restrictions, which mean that DOE cannot spend money to address an issue until Congress appropriates the money for that purpose.

There are also discontinuities between nuclear safety, security and liability approaches applicable to DOE and the Nuclear Regulatory Commission that have to be accommodated. These could affect matters as diverse as site access, transfer of ownership and radiation exposure standards. Likewise, dealing with two federal agencies that have different roles will complicate compliance with certain laws that apply equally to both of them, such as the National Environmental Policy Act and the National Historic Preservation Act.

Finally, there are also unique financial considerations arising both out of sharing common services and buying services from DOE.

None of these issues are insoluble, but it will take time and flexibility in approach to reach agreement. A reactor designer looking at a DOE site should go into it with eyes open and a large measure of patience for the negotiation that will be required.

Hogan Lovells has experience with negotiating these types of unique agreements with DOE. For additional information please contact one of the authors below.

Mary Anne Sullivan
Dan Stenger
Amy Roma
Sachin Desai

Last Thursday the Senate Energy and Natural Resources Committee reported out of committee the Nuclear Energy Innovation Capabilities Act of 2017 (bill S.97).  This legislation will “enable civilian research and development of advanced nuclear energy technologies by private and public institutions” and represents a significant opportunity for advanced reactors.  It is now one step closer to a full Senate floor vote.

This comes on the heels of a different advanced reactor bill, the Nuclear Energy Innovation and Modernization Act of 2017 (bill S.512), reporting out of the Senate Environment and Public Works Committee a week earlier.  Confused about the multiple advanced reactor-related bills moving forward in Congress?  Check out our prior post to learn more about them.

On Thursday, a team of eight U.S. Senators introduced S. 512, the Nuclear Energy Innovation and Modernization Act.   As described in a press release by the Senate Committee on Environment and Public Works, this bill tackles a number of issues affecting the licensing of advanced reactors.  It promises to “establish[] new transparency and accountability measures to the commission’s budget and fee programs,” “develop the regulatory framework necessary to enable the licensing of advanced nuclear reactors,” and “improve the efficiency of uranium regulation,” among other things.  The text of the bill can be found here.

S. 512 builds off of a prior version of the bill introduced in 2016, numbered S. 2795 (see a prior post on this legislation here). Among some of the changes from the 2016 version, S. 512 contains new sections on uranium recovery and transfers. It also adds a new focus on the licensing of new types of nuclear reactor fuel—for example, it now asks that the U.S. Nuclear Regulatory Commission evaluate “strategies for the qualification of advanced nuclear reactor fuel, including the use of computer modeling and simulation and experimental validation.”

A similarly-named bill, the Nuclear Energy Innovation Capabilities Act, was introduced in Congress earlier in 2017 (S. 97 and H.R. 431). You can see our blog post on this legislation here.  The Senate version of the bill, which was referred to the Senate Energy and Natural Resources Committee, shares some of the same sponsors as S. 512.  The Nuclear Energy Innovation Capabilities Act appears to focus more on R&D and the use of national laboratories to assist nuclear energy innovators.  On the other hand, S. 512, which is broader in scope, focuses more on NRC licensing.

The Nuclear Energy Innovation and Modernization Act is an exciting piece of legislation.  We will continue to inform readers as it moves through the legislative process.