Sec. 2. Nuclear reactor incentives
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/bill/116/hr/9015/ih/section-2A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
In this section: The term certified nuclear reactor means a nuclear reactor that— operates in a competitive electricity market; and 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). Subject to the availability of appropriations, the Administrator, in consultation with the Secretary, shall establish an emissions avoidance program— to evaluate nuclear reactors that are projected to cease operations due to economic factors; and 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. 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 Administrator an application at such time, in such manner, and containing such information as the Administrator determines to be appropriate, including— information on the operating costs necessary to make the determination described in paragraph (2)(A)(ii)(II), including— the average annual operating loss per megawatt-hour expected to be incurred by the nuclear reactor over the 4-year period for which credits would be allocated; any private or publicly available data with respect to current or projected bulk power market prices; out-of-market revenue streams; operations and maintenance costs; capital costs, including fuel; and operational and market risks; an estimate of the potential incremental emissions of carbon dioxide, nitrogen oxides, sulfur oxides, particulate matter, and hazardous air pollutants that would result if the nuclear reactor were to cease operations; information on the source of recovered 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 a detailed plan to sustain operations at the conclusion of the applicable 4-year period for which credits would be allocated— without receiving additional credits; or with the receipt of additional credits of a lower amount than the credits allocated during that 4-year credit period. The Administrator shall accept applications described in subparagraph (A)— until the date that is 120 days after the date of enactment of this Act; and not less frequently than every year thereafter. Not later than 60 days after the applicable date under subparagraph
(B)of paragraph (1), the Administrator, in consultation with the Secretary, shall determine whether to certify, in accordance with clauses
(ii)and
(iii)of this subparagraph, each nuclear reactor for which an application is submitted under subparagraph
(A)of paragraph (1). To the maximum extent practicable, the Administrator, in consultation with the Secretary, shall only certify a nuclear reactor under clause
(i)if— the nuclear reactor has a good safety record, as determined by the Action Matrix of the Commission or the Performance Indicators of the Reactor Oversight Process, such that the nuclear reactor falls under the licensee response column indicating no current significant safety issues; after considering the information submitted under paragraph (1)(A)(i), the Administrator determines that the nuclear reactor is projected to cease operations due to economic factors; and after considering the estimate submitted under paragraph (1)(A)(ii), the Administrator determines that emissions of carbon dioxide, nitrogen oxides, sulfur oxides, particulate matter, and hazardous air pollutants would increase if the nuclear reactor were to cease operations and be replaced with other types of power generation. In determining whether to certify a nuclear reactor under clause (i), the Administrator, in consultation with the Secretary, shall give priority to a nuclear reactor that uses uranium that is recovered, converted, enriched, and fabricated into fuel assemblies in the United States. For each application received under paragraph (1)(A), the Administrator, in consultation with the Secretary, shall provide to the applicable owner or operator, as applicable— a notice of the certification of the applicable nuclear reactor; or a notice that describes the reasons why the certification of the applicable nuclear reactor was denied. Subject to paragraph (2), the Administrator shall establish a deadline by which each certified nuclear reactor shall submit to the Administrator a sealed bid that— describes the price per megawatt-hour required to maintain operations of the certified nuclear reactor during the 4-year period for which the certified nuclear reactor would receive credits; and 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 Administrator 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. The Administrator, in consultation with the Secretary, shall— 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 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 Administrator shall use the amounts made available for credits under this section to allocate credits to as many certified nuclear reactors as possible. 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 Administrator may not allocate any credits after September 30, 2026. During the 4-year period beginning on the date on which a certified nuclear reactor first receives a credit, the Administrator, in consultation with the Secretary, shall periodically audit the certified nuclear reactor. The Administrator 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)— terminates operations; or does not operate at an annual loss in the absence of an allocation of credits to the certified nuclear reactor. The Administrator, in consultation with 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. 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— an evaluation of the effectiveness of the credits in avoiding emissions of carbon dioxide, nitrogen oxides, sulfur oxides, particulate matter, and hazardous air pollutants while ensuring grid reliability; a quantification of the ratepayer savings achieved under this section; and any recommendations to renew or expand the credits.