42 U.S.C. § 18753: Civil nuclear credit program

Summary

The Secretary must set up a civil nuclear credit program to find and help nuclear reactors that are likely to close for economic reasons. Owners must apply with details like the reactor’s projected average annual loss in dollars per megawatt-hour over a 4-year credit period, market prices and revenues, operations and fuel costs, the likely increase in air pollution if the plant closed, where the uranium and fuel come from, and a plan for how the plant would keep running after the 4 years. The Secretary will take applications until the date 120 days after November 15, 2021, and at least once a year after that. The Secretary has 60 days to decide whether to certify a reactor. Priority goes to reactors that use uranium produced and processed in the United States. Certified reactors must submit sealed bids saying the price per megawatt-hour they want (not higher than the projected loss) and how many megawatt-hours they will produce over the 4 years. The Secretary will run an auction process, select winners, and give credits for a 4-year period starting on selection. The Secretary will audit reactors during each 4-year credit period and can take back credits if a reactor shuts down or would not be losing money without the credits. Sealed-bid information must be kept confidential. The Comptroller General must report to Congress by January 1, 2024 on pollution avoided, ratepayer savings, and recommendations. No credits may be allocated after September 30, 2031. Congress authorized $6,000,000,000 for this program for fiscal years 2022 through 2026.

Title 42, §18753

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

(a)Definitions

In this section: (1) Certified nuclear reactor (2) Credit

(b)Establishment of program

The Secretary shall establish a civil nuclear credit program—

(1)to evaluate nuclear reactors that are projected to cease operations due to economic factors; and

(2)to allocate credits to certified nuclear reactors that are selected under paragraph (1)(B) of subsection (e) to receive credits under paragraph (2) of that subsection.

(c)Certification

(1)Application

(A)In general

In order to be certified under paragraph (2)(A)(i), the owner or operator of a nuclear reactor that is projected to cease operations due to economic factors shall submit to the Secretary an application at such time, in such manner, and containing such information as the Secretary determines to be appropriate, including—

(i)information on the operating costs necessary to make the determination described in paragraph (2)(A)(ii)(I), including—

(I)the average projected annual operating loss in dollars per megawatt-hour, inclusive of the cost of operational and market risks, expected to be incurred by the nuclear reactor over the 4-year period for which credits would be allocated;

(II)any private or publicly available data with respect to current or projected bulk power market prices;

(III)out-of-market revenue streams;

(IV)operations and maintenance costs;

(V)capital costs, including fuel; and

(VI)operational and market risks;

(ii)an estimate of the potential incremental air pollutants that would result if the nuclear reactor were to cease operations;

(iii)known information on the source of produced uranium and the location where the uranium is converted, enriched, and fabricated into fuel assemblies for the nuclear reactor for the 4-year period for which credits would be allocated; and

(iv)a detailed plan to sustain operations at the conclusion of the applicable 4-year period for which credits would be allocated—

(I)without receiving additional credits; or

(II)with the receipt of additional credits of a lower amount than the credits allocated during that 4-year credit period.

(B)Timeline

The Secretary shall accept applications described in subparagraph (A)—

(i)until the date that is 120 days after November 15, 2021; and

(ii)not less frequently than every year thereafter.

(C)Payments from State programs

(i)In general

The owner or operator of a nuclear reactor that receives a payment from a State zero-emission credit, a State clean energy contract, or any other State program with respect to that nuclear reactor shall be eligible to submit an application under subparagraph (A) with respect to that nuclear reactor during any application period beginning after the 120-day period beginning on November 15, 2021.

(ii)Requirement

An application submitted by an owner or operator described in clause (i) with respect to a nuclear reactor described in that clause shall include all projected payments from State programs in determining the average projected annual operating loss described in subparagraph (A)(i)(I), unless the credits allocated to the nuclear reactor pursuant to that application will be used to reduce those payments.

(2)Determination to certify

(A)Determination

(i)In general

Not later than 60 days after the applicable date under subparagraph (B) of paragraph (1), the Secretary shall determine whether to certify, in accordance with clauses (ii) and (iii), each nuclear reactor for which an application is submitted under subparagraph (A) of that paragraph.

(ii)Minimum requirements

To the maximum extent practicable, the Secretary shall only certify a nuclear reactor under clause (i) if—

(I)after considering the information submitted under paragraph (1)(A)(i), the Secretary determines that the nuclear reactor is projected to cease operations due to economic factors;

(II)after considering the estimate submitted under paragraph (1)(A)(ii), the Secretary determines that pollutants would increase if the nuclear reactor were to cease operations and be replaced with other types of power generation; and

(III)the Nuclear Regulatory Commission has reasonable assurance that the nuclear reactor—

(aa)will continue to be operated in accordance with the current licensing basis (as defined in section 54.3 of title 10, Code of Federal Regulations (or successor regulations) of the nuclear reactor; and

(bb)poses no significant safety hazards.

(iii)Priority

In determining whether to certify a nuclear reactor under clause (i), the Secretary shall give priority to a nuclear reactor that uses, to the maximum extent available, uranium that is produced, converted, enriched, and fabricated into fuel assemblies in the United States.

(B)Notice

For each application received under paragraph (1)(A), the Secretary shall provide to the applicable owner or operator, as applicable—

(i)a notice of the certification of the applicable nuclear reactor; or

(ii)a notice that describes the reasons why the certification of the applicable nuclear reactor was denied.

(d)Bidding process

(1)In general

Subject to paragraph (2), the Secretary shall establish a deadline by which each certified nuclear reactor shall submit to the Secretary a sealed bid that—

(A)describes the price per megawatt-hour of the credits desired by the certified nuclear reactor, which shall not exceed the average projected annual operating loss described in subsection (c)(1)(A)(i)(I); and

(B)includes a commitment, subject to the receipt of credits, to provide a specific number of megawatt-hours of generation during the 4-year period for which credits would be allocated.

(2)Requirement

The deadline established under paragraph (1) shall be not later than 30 days after the first date on which the Secretary has made the determination described in paragraph (2)(A)(i) of subsection (c) with respect to each application submitted under paragraph (1)(A) of that subsection.

(e)Allocation

(1)Auction

Notwithstanding section 2209 of this title, the Secretary shall—

(A)in consultation with the heads of applicable Federal agencies, establish a process for evaluating bids submitted under subsection (d)(1) through an auction process; and

(B)select certified nuclear reactors to be allocated credits.

(2)Credits

Subject to subsection (f)(2), on selection under paragraph (1), a certified nuclear reactor shall be allocated credits for a 4-year period beginning on the date of the selection.

(3)Requirement

To the maximum extent practicable, the Secretary shall use the amounts made available for credits under this section to allocate credits to as many certified nuclear reactors as possible.

(f)Renewal

(1)In general

The owner or operator of a certified nuclear reactor may seek to recertify the nuclear reactor in accordance with this section.

(2)Limitation

Notwithstanding any other provision of this section, the Secretary may not allocate any credits after September 30, 2031.

(g)Additional requirements

(1)Audit

During the 4-year period beginning on the date on which a certified nuclear reactor first receives a credit, the Secretary shall periodically audit the certified nuclear reactor.

(2)Recapture

The Secretary shall, by regulation, provide for the recapture of the allocation of any credit to a certified nuclear reactor that, during the period described in paragraph (1)—

(A)terminates operations; or

(B)does not operate at an annual loss in the absence of an allocation of credits to the certified nuclear reactor.

(3)Confidentiality

The Secretary shall establish procedures to ensure that any confidential, private, proprietary, or privileged information that is included in a sealed bid submitted under this section is not publicly disclosed or otherwise improperly used.

(h)Report

Not later than January 1, 2024, the Comptroller General of the United States shall submit to Congress a report with respect to the credits allocated to certified nuclear reactors, which shall include—

(1)an evaluation of the effectiveness of the credits in avoiding air pollutants while ensuring grid reliability;

(2)a quantification of the ratepayer savings achieved under this section; and

(3)any recommendations to renew or expand the credits.

(i)Authorization of appropriations

There is authorized to be appropriated to the Secretary to carry out this section $6,000,000,000 for the period of fiscal years 2022 through 2026.

Notes & Related Subsidiaries

Statutory Notes and Related Subsidiaries

Wage Rate RequirementsFor provisions relating to rates of wages to be paid to laborers and mechanics on projects for

Construction

, alteration, or repair work funded under div. D or an amendment by div. D of Pub. L. 117–58, including authority of Secretary of Labor, see section 18851 of this title.

§18753 Civil Nuclear Credit Program

Summary

Title 42, §18753

Notes & Related Subsidiaries

Statutory Notes and Related Subsidiaries

Construction

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