42 USC 18753 - Civil nuclear credit program

U.S Code last checked for updates: Nov 22, 2024

§ 18753.

Civil nuclear credit program

(a)

Definitions

In this section:

(1)

Certified nuclear reactor

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).

(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

(ii)

Requirement

(2)

Determination to certify

(A)

Determination

(i)

In general

(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) 1

 So in original. Probably should be followed by a second closing parenthesis.

of the nuclear reactor; and

(bb)

poses no significant safety hazards.

(iii)

Priority

(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

(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

(3)

Requirement

(f)

Renewal

(1)

In general

(2)

Limitation

(g)

Additional requirements

(1)

Audit

(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

(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

(Pub. L. 117–58, div. D, title III, § 40323, Nov. 15, 2021, 135 Stat. 1019.)

cite as: 42 USC 18753