New Plant Incentives within the
Energy Policy Act of 2005 (EPACT 2005)
Summary of
Title XVII - Incentives for Innovative Technologies
This title allows the Secretary of Energy to provide loan guarantees for up to 80 percent of eligible project costs after consultation with the Secretary of the Treasury. The guarantee is for projects that avoid, reduce, or sequester air pollutants or anthropogenic emissions of greenhouse gases; and employ new or significantly improved technologies as compared to commercial technologies in service in the United States today. Incentive covers a broad range of technologies that include advanced nuclear energy facilities.
Additional Information: http://www.lgprogram.energy.gov/
Summary of
Section 1306, Credit for Production from Advanced Nuclear Power Facilities under Title XIII - Energy Policy Tax Incentives
This section allows the Secretary of Treasury, in consultation with the Secretary of Energy, to permit a production tax credit of 1.8 cents per kilowatt-hour to qualified advanced nuclear power facilities for an 8-year period after it is placed in service after enactment of the Act and before January 1, 2021. The legislation limits the national megawatt capacity for production tax credits to 6,000 MWe (megawatts-electric). The credit limitation is based on the Secretary of Treasury's allocated capacity per facility and an annual limitation of $125 million per 1,000 MWe per taxable year. The allowable credit is also reduced by reason of grants, tax exempt bond, subsidized energy financing, and other credits but such reduction cannot exceed 50 percent of the allowable credit.
Additional Information visit: www.irs.gov
Summary of
Title XVI - Incentives for Innovative Technologies
This title allows the Secretary of Energy to provide loan guarantees for up to 80 percent of eligible project costs after consultation with the Secretary of the Treasury. The guarantee is for projects that avoid, reduce, or sequester air pollutants or anthropogenic emissions of greenhouse gases; and employ new or significantly improved technologies as compared to commercial technologies in service in the United States today. No guarantee shall be made unless an appropriation for the cost has been made or the Secretary of Energy has received from the borrower a payment in full for the cost of the obligation and deposited the payment into the Treasury. Incentive covers a broad range of technologies that include advanced nuclear energy facilities.
Additional Information: Testimony of David K. Garman, Under Secretary,
U.S. Department of Energy, Before the Committee on Energy and Natural Resources, United States Senate, Washington, DC -- May 1, 2006
Summary of
Other Nuclear Energy-Related Sections in EPACT 20051
Summary of
Subtitle A - Price Anderson Act Amendments
under Title VI - Nuclear Matters
Section 602 extends the indemnification authority of the Atomic Energy Act. The indemnification of certain Nuclear Regulatory Commission Licensees is extended from December 31, 2003, to December 31, 2025. The indemnification of Department Contractors is extended from December 31, 2006, to December 31, 2025, and the indemnification of Nonprofit Educational Institutions is extended from August 1, 2002 to December 31, 2025.
Section 603 increases the maximum annual premium charged against each commercial power reactor and other large reactors after an accident from a fixed $10,000,000 to $15,000,000 adjusted in the future of inflation. The maximum total charge per reactor per accident is set at $95,800,000 in2003 dollars, and is also adjusted for inflation in the future.
Section 604 limits the indemnity provided by the Department of Energy for its contractors to $10 billion, subject to adjustment for inflation, for each nuclear incident, including legal costs.
Section 608 clarifies the treatment of modular reactors as a single facility or multiple facilities. Two or more facilities located at a single site, each having a rated capacity of 100,000 electrical kilowatts or more but not more than 300,000 electrical kilowatts, will be considered a single facility, with a combined rated capacity of not more than 1,300,000 electrical kilowatts.
Summary of
Section 630 - Medical Isotope Production under Title VI - Nuclear Matters, Subtitle B- General Nuclear Matters
This section permits the Nuclear Regulatory Commission (NRC) to issue authorizing licenses for the export of highly enriched uranium (HEU) for the purposes of medical isotope production. The Act outlines the requirements which must be met before granting a license to a recipient country. The requirements include written assurance that the HEU will be used only to produce medical isotopes and that adequate physical protection requirements are in place for transportation and storage of the HEU. It also permits the NRC to impose additional requirements if they are needed for physical protection. The Act also requires the Secretary of Energy to enter into an arrangement with the National Academy of Sciences (NAS) to conduct a feasibility study related to domestic medical isotope production. The NAS is to review the feasibility of procuring supplies of medical isotopes from commercial sources that do not use HEU. In addition, the NAS is to examine the current and projected demand and availability of medical isotopes in regular domestic use as well as DOE's progress in eliminating the use of HEU in reactor fuel, reactor targets, and medical isotope production facilities. The study seeks to identify the potential cost differential in medical isotope production based on the processing facility used (i.e., HEU vs. low enriched uranium, LEU). The Secretary of Energy is to provide this report to Congress within five years of enactment of this Act. The Secretary of Energy is required to submit a second report to Congress if the NAS determines the use of LEU is a feasible approach to producing medical isotopes. The report should describe options for meeting domestic demands by using domestic suppliers. The Secretary of Energy must submit certification that LEU facilities are capable of meeting domestic medical isotope needs within a prescribed cost increase. After the Secretary of Energy submits the certification, then the use of the export licenses for HEU by the NRC shall end.
Summary of
Section 634 - Demonstration of Hydrogen Production at Existing Nuclear Power Plants under Title VI - Nuclear Matters, Subtitle B- General Nuclear Matters
This section states the Secretary of Energy shall provide for the establishment of two projects in regionally climatically diverse geographic areas to demonstrate the commercial production of hydrogen at existing nuclear power plants. Prior to making an award, the Secretary of Energy must determine the cost-effectiveness of using existing nuclear power plants for producing hydrogen. Up to $100 million is authorized for appropriation to carry this out.
Summary of
Section 638 - Standby Support for Certain Nuclear Plant Delays under Title VI - Nuclear Matters, Subtitle B- General Nuclear Matters
This section allows the Secretary of Energy to enter into contracts for standby support for delays for up to a total of six reactors of no more than three different reactor designs. Covered delays include the failure of the Nuclear Regulatory Commission (NRC) to comply with schedules for review and approval of inspections or the conduct of hearings, in addition to litigation that delays full-power operation. The Secretary of Energy would pay 100 percent of the covered costs for the first two reactors that have received a combined license and for which construction has begun. However, the Department would not cover any cost that result in a failure of the project sponsor to take any action required by law or regulation or any events within the sponsor's control. Covered costs would include principle or interest on debt coverage, and the difference on the fair market price of purchase power and contractual price of power from the plant, up to a total of $500 million. For the next four reactors, the Secretary would pay 50 percent of the covered costs (principle and interest and purchase power difference) of a delay, up to $250 million. Covered costs are subject to the Secretary of Energy receiving appropriations or payments from project sponsors sufficient to pay covered cost. The Secretary of Energy shall issue for public comment an interim final rule regulating the contracts no later than 270 days of enactment of this Act. The Secretary of Energy shall issue a notice of final rulemaking regulating the contracts no later than one year after enactment of this Act.
Summary of
Subtitle C -Next Generation Nuclear Plant Project under Title VI - Nuclear Matters
This subtitle authorizes $1.25 billion for fiscal years 2006 through 2015 to fund a prototype Next Generation Nuclear Plant Project to produce both electricity and hydrogen. The prototype nuclear reactor and associated hydrogen plant is to be sited at the Idaho National Laboratory (INL) in Idaho. The INL is designated the lead national laboratory and is to collaborate with other national laboratories, institutions of higher education, research institutes, industrial researchers, and international researchers to help develop the advanced designs for the integrated production of both electricity and hydrogen. A consortium of industrial partners is to carry out the cost-shared research, development, design, construction and operations of the integrated plant. The completion date of the first phase of the Project is identified as September 30, 2011. This phase is to include selection and validation of the best high-temperature technology and the initial design work to establish the feasibility of combining electricity generation and hydrogen production in a single prototype plant and the best combination of the reactor and plant. A design competition, between a maximum of four teams for not more than two years, is to be used to develop detailed proposals for competitive evaluation, and for selection of the final design of the prototype nuclear reactor and the associated hydrogen plant. The completion date of the second phase of the project is identified as September 30, 2021. This phase is to include the final design, construction, and start-up of the combined energy and hydrogen plant. The Nuclear Regulatory Commission (NRC) is to have licensing authority and is required to submit a licensing strategy for the prototype reactor no later than three years from enactment of this Act. The NRC is to actively participate throughout the duration of the project regarding safety features. Refer to Title VIII, pages 774 - 811, for details of related hydrogen research and development legislation.
Summary of
Title IX - Research and Development
This title allows the Secretary of Energy to conduct a set of Nuclear Energy programs that increase the efficiency of nuclear energy intensive sectors via improved technologies, promote diversity of the energy supply, decrease the Nation's dependence on foreign energy sources, improve energy security, and decrease the environmental impact of energy related activities. These programs would include existing and advanced reactors and the education of future specialists.
Summary of
Section 951 - Nuclear Energy under Title IX - Research and Development,
Subtitle E - Nuclear Energy
This section cites eight objectives of nuclear energy research and development. They are: enhancing nuclear power's viability; reducing the likelihood of proliferation; maintaining a cadre of nuclear scientists and engineers; maintaining national laboratory and university programs, support individual and multidisciplinary researchers; developing, planning, constructing, acquiring, and operating special research equipment/facilities; supporting technology transfer; and, reducing the environment impact of nuclear energy-related activities. Allocations will increase from $330 million in fiscal year 2007 to $495 million in fiscal year 2009 which authorizes the Department to carry out its core programs of nuclear energy research, development, demonstration, and commercial application activities.From FY 2007 to FY 2009, the Act also authorizes the Department to carry out responsibilities related to the civilian nuclear infrastructure and facilities which includes developing an inventory of nuclear science and engineering facilities, developing a prioritized list of nuclear science and engineering plant and equipment improvements, considering available national laboratory resources (expertise and facilities), and developing a timeline and proposed budget for the completion of deferred maintenance.
Summary of
Section 952 - Nuclear Energy Research Programs under Title IX - Research and Development, Subtitle E - Nuclear Energy
This section lists the Office of Nuclear Energy's core programs as the Nuclear Energy Research Initiative, Nuclear Energy Systems Support Program, Nuclear Power 2010 Program, Generation IV Nuclear Energy Systems Initiative, and the Reactor Production of Hydrogen. The Nuclear Power 2010 program shall include the use of expertise and capabilities of industry, higher education, and the national laboratories. The Generation IV initiative must examine advanced proliferation-resistant and passively-safe reactor designs that are economically competitive, have high efficiency, low cost, and improved safety as well as improved instrumentation. The Hydrogen initiative will conduct research to examine designs for high-temperature reactors capable of producing large quantities of hydrogen.
Summary of
Section 953 - Advanced Fuel Cycle Initiative under Title IX - Research and Development, Subtitle E - Nuclear Energy
This section authorized the Secretary of Energy to conduct an advanced fuel recycling technology, research, development, and demonstration program to evaluate proliferation-resistant fuel recycling and transmutation technologies that minimize environmental and public health and safety impacts. The program is subject to an annual review by the Nuclear Energy Research Advisory Committee, should seek out international cooperation to enhance progress, and submit a report on program activities annually.
Summary of
Section 954 - University Nuclear Science and Engineering Support under Title IX - Research and Development, Subtitle E - Nuclear Energy
This section authorizes the Secretary of Energy to conduct a program to invest in human resources and infrastructure in the nuclear sciences and related fields. This section references the requirements in the program to conduct an undergraduate/graduate fellowship program to attract new talent; conduct a junior faculty research initiation grant program; support fundamental nuclear sciences, engineering, and health physics research; encourage collaborative nuclear research; and, support communication and outreach related to these areas. This section also requires the Secretary of Energy to conduct a fellowship program for university professors and to set up a visiting scientist program at the national laboratories. In reference to the responsibility for strengthening university research and training reactors with associated infrastructure, the Secretary of Energy may support converting research reactor from high-enrichment fuel to low-enrichment fuels; broadened access to university research reactors; student training programs; and, reactor improvements. This section also addresses operations and maintenance costs for projects under this program.
Summary of
Section 955 - Department of Energy Civilian Nuclear Infrastructure and Facilities under Title IX - Research and Development, Subtitle E - Nuclear Energy
This section states that the Secretary of Energy shall operate and maintain infrastructure and facilities to support nuclear energy activities. It describes the duties related to this responsibility to include developing an inventory of nuclear science and engineering facilities; developing a prioritized list of nuclear science and engineering plant and equipment improvements; considering the available facilities and expertise at the national laboratories and emphasizing investment without redundancy; and, developing a timeline and proposed budget for the completion of deferred maintenance on plants and equipment. This section also states that the Department shall develop a "comprehensive plan" for Idaho National Laboratory (INL) facilities. In developing this plan, the Secretary of Energy shall evaluate the facilities planning processes; avoid duplicating, moving, or transferring nuclear science and engineering facilities, equipment, expertise, etc.; consider the establishment of a national transuranic analytical chemistry laboratory at the INL; include a plan to develop the Advanced Test Reactor and Test Reactor Area into a user facility; consider establishing a fast neutron source as a user facility; consider establishing new hot cells with advanced configurations; and, include a timeline and proposed budget for completion of deferred maintenance. This plan must be transmitted to Congress no later that one year from the date of enactment of the Act.
Summary of
Section 956 - Security of Nuclear Facilities under Title IX - Research and Development, Subtitle E - Nuclear Energy
This section calls for a research and development program on cost-effective technologies that enhance the safety of nuclear facilities from natural phenomena and the security of such facilities from deliberate attacks.
Summary of
Section 957 - Alternatives to Industrial Radioactive Sources under Title IX - Research and Development, Subtitle E - Nuclear Energy
The Energy Policy Act of 2005 (EPAct), Section 957, required the Secretary of Energy to submit a report to Congress on "Alternatives to Industrial Radioactive Sources," by August 1, 2006. The Office of Nuclear Energy had the lead for the Department of Energy (DOE) response to Section 957. The report was delivered to Congress on July 31, 2006, and surveys the current inventories of large radioactive sources used by industry, provides information on current domestic and international programs to manage and dispose of radioactive sources, and proposes a research and development program plan to identify promising alternative technologies that can replace radioactive sources and reduce vulnerabilities associated with those sources.
Summary of
Section 1006, Improved Coordination and Management of Civilian Science and Technology Programs under Title X - Department of Energy Management
This section provides for the creation of two higher level positions within the Department. It states that there shall be an Under Secretary for Science, that there shall be seven Assistant Secretaries in the Department rather than six, and the leadership for departmental missions in nuclear energy should be carried out and managed at the Assistant Secretary level.
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