Representative Elaine Luria (D-VA-02) introduced the Nuclear Energy Leadership Act (NELA) (H. 3306) into the House of Representatives on June 18. According to a press release from the congresswoman’s website, NELA will help to “create high-quality jobs, strengthen national security, reduce foreign energy dependence, and promote emissions-free energy.” Original co-sponsors of the bill include Representative Denver Riggleman (R-VA-05), Representative Conor Lamb (D-PA-17), and Representative Rob Wittman (R-VA-01).

The House bill is the companion to Senate Bill 903 (S. 903) that Senators Lisa Murkowski (R-AK) and Cory Booker (D-NJ), along with 14 other original co-sponsors, reintroduced on March 27. Senators Murkowski and Booker, along with seven other bipartisan senators, originally introduced NELA on September 6, 2018, as Senate Bill 3422 (S. 3422). Although the Senate Subcommittee on Energy held hearings on S. 3422 in November 2018, it took no further action before the end of the 115th Congress. The bill consequently lapsed, requiring the senators to reintroduce it as S. 903. The bill now has 17 co-sponsors in the Senate.

Staff members from the US Nuclear Regulatory Commission’s (NRC’s) Office of Nuclear Security and Incident Response and Office of Nuclear Reactor Regulation held a public meeting on June 17 to discuss a summary of the Assessment of the NRC’s Power Reactor Cyber Security Program. In response to the Nuclear Energy Institute’s (NEI’s) PRM-73-18, “Petition to Amend 10 CFR 73.54, ‘Protection of Digital Computer and Communication Systems and Networks’,” and based on NRC guidance, this Assessment marked 10 years since the publication of 10 CFR 73.54.

The New Jersey Board of Public Utilities (BPU) approved applications submitted by PSEG Nuclear LLC seeking subsidies of up to $300 million annually, in the form of zero emission credits (ZECs), for PSEG’s Hope Creek and Salem 1 and 2 nuclear generating stations on April 18. The PSEG applications were filed on December 19, 2018, after New Jersey enacted legislation on May 23, 2018, establishing a ZEC program for the state (the ZEC Act).

The US Nuclear Regulatory Commission (NRC) Office of Investigations (OI) recently published its Office of Investigations Annual Report FY 2018. The report provides an overview of OI’s activities during the previous fiscal year and shows that OI opened 12% fewer cases than in 2017. Of the 101 cases opened in FY 2018, 40% were discrimination cases, a 4% increase from FY 2017. “Discrimination” in this context refers to retaliation for engaging in protected activities established in Section 211 of the Energy Reorganization Act of 1974, as amended. Discrimination has remained the largest case category for the past three years. Material false statement investigations reflect 16% of the cases OI opened in FY 2018, a 4% decrease from FY 2017. Investigations into other alleged violations of NRC regulations reflect 27% of the cases OI opened in FY 2018, and investigations opened to provide assistance to the NRC staff reflect 18% of the cases OI opened in FY 2018.

As we reported in 2017, the United Kingdom’s exit from the European Union, set for March 29, 2019, will also include withdrawal of the United Kingdom from the European Atomic Energy Community (Euratom). Exports of nuclear materials, goods, and services from the United States to the United Kingdom currently are authorized through the US–Euratom agreement and the Euratom Cooperation Act of 1958. Essentially, these arrangements are the substitute for a bilateral agreement for cooperation in the peaceful uses of nuclear energy pursuant to Section 123 of the Atomic Energy Act of 1954, as amended (a 123 Agreement), with each of the 28 member countries of Euratom.

A partial government shutdown currently looms on the horizon. The US Nuclear Regulatory Commission (NRC), however, has a budget funded through FY 2019, so it would not be impacted if the government shuts down.

The NRC did experience the effects of a federal government shutdown in 2013. Then, the NRC furloughed 3,600 of 3,900 staff members. The 300 essential personnel who stayed on included about 150 resident inspectors. All public meetings were suspended, and Atomic Safety and Licensing Board hearings were postponed. However, the Inspector General’s Office, as well as the NRC’s hotline for safety and security concerns, continued to function.

On November 19, the Nuclear Regulatory Commission (NRC) Commissioners approved the Staff’s proposed rulemaking plan for expanding physical security licensing options for advanced reactors.

As we previously reported, the NRC Staff sent a report to the Commission on August 1, 2018, that evaluated four options for revising regulations and guidance on physical security for advanced reactors. The report recommended revising applicable regulations and guidance and attached a proposed rulemaking plan. The report noted that the rulemaking would retain the current framework for security requirements in 10 CFR Part 73, but would provide alternatives for the physical security of advanced reactors. According to the report, changes to physical security for advanced reactors would

  • eliminate the need for future applicants to propose alternatives or request exemptions from physical security requirements;
  • recognize technology advancements and design features associated with the NRC-recommended attributes of advanced reactors; and
  • replace prescriptive regulations with risk-informed, performance-based requirements, among other benefits.

The August 2018 enactment of the Foreign Investment Risk Review Modernization Act (FIRRMA) came after more than two years of debate over the appropriate scope of jurisdiction for the Committee on Foreign Investment in the United States (CFIUS). Much has already been written about FIRRMA and its potentially ambitious reach, as well as about the interest by certain parties, including members of Congress, to keep CFIUS away from some transactions. The result was a law that amended a number of provisions defining CFIUS jurisdiction, both expanding and narrowing key parts of the Committee’s reach. The pilot program is focused on certain specific types of transactions, without regard to the country of the acquiring entity, that CFIUS can review under FIRRMA, including transactions involving “Nuclear Electric Power Generation.”

Read the LawFlash.

The US Court of Appeals for the Second Circuit on September 27 affirmed a decision of the US District Court for the Southern District of New York dismissing a complaint seeking to invalidate New York’s Zero Emissions Credit (ZEC) program. This decision comes on the heels of a Seventh Circuit decision affirming the validity of a similar ZEC program in Illinois. In its opinion, the Second Circuit noted that its conclusions accorded with the Seventh Circuit’s decision, which we wrote about in an earlier post.

In a Federal Register Notice issued September 24, the NRC has implemented an inflation adjustment to the amount of Price-Anderson financial protection that is available effective November 1, 2018. The inflation adjustment is mandated every five years under the terms of the Price-Anderson Act, as amended (Section 170 of the Atomic Energy Act of 1954). The maximum total deferred premium will be increased from $121.255 million to $131.056 million, per operating reactor, per incident. The maximum annual assessment will be increased from $18.963 million to $20.496 million, per operating reactor, per incident.