(a) Definitions
In this section:
The term "certified nuclear reactor" means a nuclear reactor that—
(A) competes in a competitive electricity market; and
(B) is certified under subsection (c)(2)(A)(i) to submit a sealed bid in accordance with subsection (d).
The term "credit" means a credit allocated to a certified nuclear reactor under subsection (e)(2).
(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
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.
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.
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.
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.
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.
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) 1 of the nuclear reactor; and
(bb) poses no significant safety hazards.
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.
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
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.
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
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.
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.
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
The owner or operator of a certified nuclear reactor may seek to recertify the nuclear reactor in accordance with this section.
Notwithstanding any other provision of this section, the Secretary may not allocate any credits after September 30, 2031.
(g) Additional requirements
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.
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.
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.