Title 42, The Public Health and WelfareRelease 119-110

§16014 Standby Support for Certain Nuclear Plant Delays

Title 42 › CHAPTER 149 — NATIONAL ENERGY POLICY AND PROGRAMS › SUBCHAPTER VI — NUCLEAR MATTERS › Part A — General Nuclear Matters › § 16014

Last updated Sep 23, 2026|Official source

Summary

The Secretary of Energy may sign contracts with companies that are building new "advanced" nuclear reactors to pay some costs if those plants are delayed. The program can cover up to 6 reactors and no more than 3 different reactor designs. Advanced nuclear facility: a reactor design approved after December 31, 1993. Combined license: a single construction and operating license. Commission: the Nuclear Regulatory Commission. Sponsor: a person or company that applied for or got a combined license. Before a contract is made, the Secretary must put money into two named accounts (the Standby Support Program Account and the Standby Support Grant Account) so funds are available to pay delay costs. The Secretary will pay costs when full-power start is delayed because the Nuclear Regulatory Commission missed review or hearing schedules, or because of litigation. The Secretary will not pay for delays caused by the sponsor, by things the sponsor controls, or by normal business risks. For the first two reactors that start construction, the government pays 100% of covered delay costs but no more than $500,000,000 per contract. For the next four reactors, the government pays 50% of covered costs that happen after the first 180 days of delay, up to $250,000,000 per contract. Covered costs include debt principal or interest for non‑Federal owners and the extra cost of buying replacement power. Sponsors must work hard to end delays. The Nuclear Regulatory Commission must send quarterly status reports to Congress and the Secretary. The Secretary must issue an interim final rule within 270 days after August 8, 2005, and a notice of final rulemaking within 1 year after August 8, 2005. Funds are authorized as needed.

Full Legal Text

Title 42, §16014

The Public Health and Welfare, Source: USLM XML via OLRC

(a)Definitions

In this section: (1) Advanced nuclear facility

(2)Combined license

The term “combined license” means a combined construction and operating license for an advanced nuclear facility issued by the Commission.

(3)Commission

The term “Commission” means the Nuclear Regulatory Commission.

(4)Sponsor

The term “sponsor” means a person who has applied for or been granted a combined license.

(b)Contract authority

(1)In general

The Secretary may enter into contracts under this section with sponsors of an advanced nuclear facility that cover a total of 6 reactors, with the 6 reactors consisting of not more than 3 different reactor designs, in accordance with paragraph (2).

(2)Requirement for contracts

(A)Definition of loan cost

In this paragraph, the term “loan cost” has the meaning given the term “cost of a loan guarantee” under section 661a(5)(C) of title 2.

(B)Establishment of accounts

There is established in the Department 2 separate accounts, which shall be known as the—

(i)“Standby Support Program Account”; and

(ii)“Standby Support Grant Account”.

(C)Requirement

The Secretary shall not enter into a contract under this section unless the Secretary deposits—

(i)in the Standby Support Program Account established under subparagraph (B), funds appropriated to the Secretary in advance of the contract or a combination of appropriated funds and loan guarantee fees that are in an amount sufficient to cover the loan costs described in subsection (d)(5)(A); and

(ii)in the Standby Support Grant Account established under subparagraph (B), funds appropriated to the Secretary in advance of the contract, paid to the Secretary by the sponsor of the advanced nuclear facility, or a combination of appropriations and payments that are in an amount sufficient cover the costs described in subparagraphs (B), (C), and (D) of subsection (d)(5).

(c)Covered delays

(1)Inclusions

Under each contract authorized by this section, the Secretary shall pay the costs specified in subsection (d), using funds appropriated or collected for the covered costs, if full power operation of the advanced nuclear facility is delayed by—

(A)the failure of the Commission to comply with schedules for review and approval of inspections, tests, analyses, and acceptance criteria established under the combined license or the conduct of preoperational hearings by the Commission for the advanced nuclear facility; or

(B)litigation that delays the commencement of full-power operations of the advanced nuclear facility.

(2)Exclusions

The Secretary may not enter into any contract under this section that would obligate the Secretary to pay any costs resulting from—

(A)the failure of the sponsor to take any action required by law or regulation;

(B)events within the control of the sponsor; or

(C)normal business risks.

(d)Covered costs

(1)In general

Subject to paragraphs (2), (3), and (4), the costs that shall be paid by the Secretary pursuant to a contract entered into under this section are the costs that result from a delay covered by the contract.

(2)Initial 2 reactors

In the case of the first 2 reactors that receive combined licenses and on which construction is commenced, the Secretary shall pay—

(A)100 percent of the covered costs of delay; but

(B)not more than $500,000,000 per contract.

(3)Subsequent 4 reactors

In the case of the next 4 reactors that receive a combined license and on which construction is commenced, the Secretary shall pay—

(A)50 percent of the covered costs of delay that occur after the initial 180-day period of covered delay; but

(B)not more than $250,000,000 per contract.

(4)Conditions on payment of certain covered costs

(A)In general

The obligation of the Secretary to pay the covered costs described in subparagraph (B) of paragraph (5) is subject to the Secretary receiving from appropriations or payments from other non-Federal sources amounts sufficient to pay the covered costs.

(B)Non-Federal sources

The Secretary may receive and accept payments from any non-Federal source, which shall be made available without further appropriation for the payment of the covered costs.

(5)Types of covered costs

Subject to paragraphs (2), (3), and (4), the contract entered into under this section for an advanced nuclear facility shall include as covered costs those costs that result from a delay during construction and in gaining approval for fuel loading and full-power operation, including—

(A)principal or interest on any debt obligation of an advanced nuclear facility owned by a non-Federal entity; and

(B)the incremental difference between—

(i)the fair market price of power purchased to meet the contractual supply agreements that would have been met by the advanced nuclear facility but for the delay; and

(ii)the contractual price of power from the advanced nuclear facility subject to the delay.

(e)Requirements

Any contract between a sponsor and the Secretary covering an advanced nuclear facility under this section shall require the sponsor to use due diligence to shorten, and to end, the delay covered by the contract.

(f)Reports

For each advanced nuclear facility that is covered by a contract under this section, the Commission shall submit to Congress and the Secretary quarterly reports summarizing the status of licensing actions associated with the advanced nuclear facility.

(g)Regulations

(1)In general

Subject to paragraphs (2) and (3), the Secretary shall issue such regulations as are necessary to carry out this section.

(2)Interim final rulemaking

Not later than 270 days after August 8, 2005, the Secretary shall issue for public comment an interim final rule regulating contracts authorized by this section.

(3)Notice of final rulemaking

Not later than 1 year after August 8, 2005, the Secretary shall issue a notice of final rulemaking regulating the contracts.

(h)Authorization of appropriations

There are authorized to be appropriated such sums as are necessary to carry out this section.

Reference

Citations & Metadata

Citation

42 U.S.C. § 16014

Title 42, The Public Health and Welfare

Last Updated

Sep 23, 2026

Release point: 119-110