(a) Definitions
In this section:
The term "advanced nuclear facility" means any nuclear facility the reactor design for which is approved after December 31, 1993, by the Commission (and such design or a substantially similar design of comparable capacity was not approved on or before that date).
The term "combined license" means a combined construction and operating license for an advanced nuclear facility issued by the Commission.
The term "Commission" means the Nuclear Regulatory Commission.
The term "sponsor" means a person who has applied for or been granted a combined license.
(b) Contract authority
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).
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.
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".
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 1 cover the costs described in subparagraphs (B), (C), and (D) of subsection (d)(5).
(c) Covered delays
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.
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
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.
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.
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.
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.
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.
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
Subject to paragraphs (2) and (3), the Secretary shall issue such regulations as are necessary to carry out this section.
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.
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.