1.
(a)As used in this section, "project
development costs" means costs that have been incurred, or are
reasonably estimated to be incurred, in the development of one (1) or
more small modular nuclear reactors, including:
(1)evaluation, design, and engineering costs;
(2)costs for federal approvals and licensing;
(3)costs for environmental analyses and permitting;
(4)early site permit (as defined in 10 CFR 52.1) costs; (5)equipment procurement costs; and
(6)authorized carrying costs.
(b)As used in this section, "small modular nuclear reactor" means
a nuclear reactor that:
(1)has a rated electric generating capacity of not more than four
hundred seventy (470) megawatts;
(2)is capable of being constructed and operated, either:
(B)in combination with one (1) or more sim
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1. (a) As used in this section, "project
development costs" means costs that have been incurred, or are
reasonably estimated to be incurred, in the development of one (1) or
more small modular nuclear reactors, including:
(1) evaluation, design, and engineering costs;
(2) costs for federal approvals and licensing;
(3) costs for environmental analyses and permitting;
(4) early site permit (as defined in 10 CFR 52.1) costs;
(5) equipment procurement costs; and
(6) authorized carrying costs.
(b) As used in this section, "small modular nuclear reactor" means
a nuclear reactor that:
(1) has a rated electric generating capacity of not more than four
hundred seventy (470) megawatts;
(2) is capable of being constructed and operated, either:
(A) alone; or
(B) in combination with one (1) or more similar reactors if
additional reactors are, or become, necessary;
at a single site; and
(3) is required to be licensed by the United States Nuclear
Regulatory Commission.
The term includes a nuclear reactor that is described in this subsection
and that uses a process to produce hydrogen that can be used for energy
storage, as a fuel, or for other uses.
(c) Not later than July 1, 2023, the commission, in consultation with
the department of environmental management, shall adopt rules under
IC 4-22-2 concerning the granting of certificates under this chapter for
the construction, purchase, or lease of small modular nuclear reactors:
(1) in Indiana for the generation of electricity to be directly or
indirectly used to furnish public utility service to Indiana
customers; or
(2) at the site of a nuclear energy production or generating facility
that supplies electricity to Indiana retail customers on July 1,
2011.
(d) Rules adopted by the commission under this section must
provide for the following:
(1) That in acting on a public utility's petition for the construction,
purchase, or lease of one (1) or more small modular nuclear
reactors, as described in subsection (c), the commission shall
consider the following:
(A) Whether, and to what extent, the one (1) or more small
modular nuclear reactors proposed by the public utility will
replace a loss of generating capacity in the public utility's
portfolio resulting from the retirement or planned retirement of
one (1) or more of the public utility's existing electric
generating facilities that:
(i) are located in Indiana; and
(ii) use coal or natural gas as a fuel source.
(B) Whether one (1) or more of the small modular nuclear
reactors that will replace an existing facility will be located on
the same site as or near the existing facility and, if so, potential
opportunities for the public utility to:
(i) make use of any land and existing infrastructure or
facilities already owned or under the control of the public
utility; or
(ii) create new employment opportunities for workers who
have been, or would be, displaced as a result of the retirement
of the existing facility.
(2) That the commission may grant a certificate under this chapter
under circumstances and for locations other than those described
in subdivision (1).
(3) That the commission may not grant a certificate under this
chapter unless the owner or operator of a proposed small modular
nuclear reactor provides evidence of a plan to apply for all
licenses or permits to construct or operate the proposed small
modular nuclear reactor as may be required by:
(A) the United States Nuclear Regulatory Commission;
(B) the department of environmental management; or
(C) any other relevant state or federal regulatory agency with
jurisdiction over the construction or operation of nuclear
generating facilities.
(4) That any:
(A) reports;
(B) notices of violations; or
(C) other notifications;
sent to or from the United States Nuclear Regulatory Commission
by or to the owner or operator of a proposed small nuclear reactor
must be submitted by the owner or operator to the commission
within such times as prescribed by the commission, subject to the
commission's duty to treat as confidential and protect from public
access and disclosure any information that is contained in a report
or notice and that is considered confidential or exempt from
public access and disclosure under state or federal law.
(5) That any person that owns or operates a small modular nuclear
reactor in Indiana may not store:
(A) spent nuclear fuel (as defined in IC 13-11-2-216); or
(B) high level radioactive waste (as defined in IC 13-11-2-102);
from the small modular nuclear reactor on the site of the small
modular nuclear reactor without first meeting all applicable
requirements of the United States Nuclear Regulatory
Commission.
(e) A public utility may petition the commission for approval to
incur, before obtaining a certificate under this chapter, project
development costs for the development of one (1) or more small
modular nuclear reactors. The public utility must file with the petition
the public utility's case in chief, which must contain the information
and supporting documentation regarding the factors the commission
must consider under this subsection. In reviewing a petition and the
supporting case in chief under this subsection, the commission shall
consider the following:
(1) Whether a project by the utility to construct, purchase, or lease
a small modular nuclear reactor is reasonably consistent with:
(A) this section and rules adopted by the commission under this
section; and
(B) the purposes set forth in IC 8-1-8.8-1(b), as applicable.
(2) The following factors with respect to the project development
costs and the project for which they are to be incurred:
(A) The amount of project development costs the public utility
anticipates incurring.
(B) The anticipated timeline for incurring the project
development costs.
(C) The anticipated date by which the public utility will make
a decision as to whether to seek a certificate under this chapter.
The commission shall review a petition submitted under this subsection
and issue a final order approving or denying the petition not later than
one hundred eighty (180) days after receiving the petition and complete
case in chief. However, if the commission makes a docket entry
extending the procedural schedule and the public utility does not object
to the entered extension, the commission may extend the one hundred
eighty (180) day time frame for issuing a final order under this
subsection for the amount of time set forth in the docket entry. In an
order approving a petition, the commission must make a finding as to
the best estimate and reasonableness of project development costs
based on the evidence of record.
(f) If a public utility has received approval from the commission
under subsection (e) to incur project development costs, the public
utility may petition the commission at any time before or during the
development and execution of a small modular nuclear reactor project
for the approval of a rate schedule that periodically adjusts the public
utility's rates and charges to provide for the timely recovery of project
development costs. A petition under this subsection must describe any
efforts by the public utility to pursue funding opportunities from the
United States Department of Energy to offset the project development
costs that the public utility seeks to recover under the proposed rate
schedule.
(g) If, after reviewing a public utility's proposed rate schedule in a
petition submitted under subsection (f), the commission determines
that the public utility has incurred or will incur project development
costs that are:
(1) reasonable in amount;
(2) necessary to support the construction, purchase, or lease of a
small modular nuclear reactor; and
(3) consistent with the commission's finding as to the best
estimate of project development costs in the commission's order
of approval under subsection (e);
the commission shall approve the recovery of the project development
costs, subject to subsections (h) and (i). However, a public utility may
not file adjustments to a rate schedule to adjust for cost recovery
approved under this subsection more than one (1) time every twelve
(12) months.
(h) A public utility that recovers project development costs under
subsection (g) shall recover eighty percent (80%) of the approved
project development costs under the rate schedule approved under
subsection (g) and shall defer the remaining twenty percent (20%) of
approved project development costs, including, to the extent
applicable, depreciation, allowance for funds used during construction,
and post in service carrying costs, based on the overall cost of capital
most recently approved by the commission, and shall recover those
project development costs as part of the next general rate case that the
public utility files with the commission.
(i) The recovery of a public utility's project development costs
through a periodic rate adjustment mechanism approved by the
commission under subsection (g) must occur over a period that is equal
to:
(1) the period over which the approved project development costs
are incurred; or
(2) three (3) years;
whichever is less.
(j) Project development costs that are found by the commission to
be reasonable, necessary, and consistent with the best estimate of
project development costs in the commission's order of approval under
subsection (e) shall be recovered by a public utility by inclusion in the
public utility's rates and charges. Project development costs that are
incurred by a public utility and that exceed the best estimate of project
development costs under subsection (e) may not be included in the
public utility's rates and charges unless found by the commission to be
reasonable, necessary, and prudent in supporting the construction,
purchase, or lease of the small modular nuclear reactor for which they
were incurred. Project development costs that are incurred by a public
utility for a project that is canceled or not completed may be recovered
by the public utility if found by the commission to be reasonable,
necessary, and prudently incurred, but such costs shall be recovered
without a return unless the commission also finds that:
(1) the decision to cancel or not complete the project was
prudently made for good cause;
(2) the project development costs incurred will be offset, as
applicable, by:
(A) funding opportunities from the United States Department
of Energy that are pursued in good faith by the public utility;
(B) a recoupment of revenues received by the public utility
from one (1) or more third parties for the transfer of assets
created through the costs incurred; or
(C) a reimbursement of costs by a single customer or
prospective customer at whose request the project was pursued;
and
(3) a return on the project development costs incurred is
appropriate under the circumstances to avoid harm to the public
utility and its customers.
(k) A public utility may elect not to seek approval of, or cost
recovery for, project development costs under subsections (e) through
(i) and instead seek approval from the commission to defer and
amortize project development costs in accordance with the procedures
set forth in section 6.5 of this chapter with respect to construction costs.
(l) The commission may adopt rules under IC 4-22-2 to implement
subsections (e) through (k).
(m) This section shall not be construed to affect the authority of the
United States Nuclear Regulatory Commission.