Nuclear Fuel Security Act of 2023

This bill requires the Secretary of Energy to establish a Nuclear Fuel Security Program, expand the American Assured Fuel Supply Program, and create a HALEU for Advanced Nuclear Reactor Demonstration Projects Program to increase domestic production of low-enriched uranium (LEU) and high-assay low-enriched uranium (HALEU), ensure backup fuel supplies, and support advanced nuclear reactors.

Sec. 2, U.S. Nuclear Fuel Security Initiative: The bill states Congress's sense that the Department of Energy should boost domestic LEU production and accelerate domestic HALEU enrichment, and if commercial HALEU is not available in time, the Secretary should use Department-owned HALEU and partner with allied countries. The objectives include supporting domestic LEU production, increasing domestic HALEU output, ensuring a reserve for supply disruptions, addressing gaps in the uranium supply chain, and partnering with allies when domestic options are not feasible.

Sec. 2(d), Establishment and Expansion of Programs: The Secretary must establish the Nuclear Fuel Security Program to increase HALEU and possibly LEU production by U.S. companies, expand the American Assured Fuel Supply Program to ensure domestic uranium availability during disruptions, and create the HALEU for Advanced Nuclear Reactor Demonstration Projects Program to meet reactor developers' needs using Department inventories and allied partnerships.

Sec. 2(e), Nuclear Fuel Security Program: The Secretary must take actions like cost-shared agreements to support LEU supply diversity, enter contracts to acquire at least 20 metric tons per year of HALEU by 2027 from U.S. companies, use only domestic or allied uranium, and avoid harming U.S. reactor economics. Commitments require advance appropriations or a revolving fund, and the Secretary must consider options for quick HALEU availability, allied partnerships, and replenishing Department stockpiles.

Sec. 2(f), Expansion of the American Assured Fuel Supply Program: The Secretary must merge the Uranium Reserve Program into the American Assured Fuel Supply Program, maintain and diversify uranium supplies using domestic or allied sources, and refill the supply to address potential disruptions.

Sec. 2(g), HALEU for Advanced Nuclear Reactor Demonstration Projects Program: The Secretary must immediately accelerate making HALEU from Department inventories available for advanced reactors, prioritizing existing awards, with targets of at least 3 metric tons by September 2024, 8 more by December 2025, and 10 more by June 2026. The Secretary must consider options like using excess uranium, blending high-enriched uranium, and expanding infrastructure. This authority ends when commercial HALEU can meet needs or by September 2034.

Sec. 2(h), Domestic Sourcing Considerations: Activities under the programs must promote U.S. manufacturing or use resources from the U.S. or allied countries, unless the Secretary waives this to achieve the objectives.

Sec. 2(i), Reasonable Compensation: The Secretary must ensure LEU and HALEU are sold at fair market value, with revenues deposited into a revolving fund for program purposes.

Sec. 2(j), Nuclear Regulatory Commission: The NRC must prioritize and expedite actions related to the programs.

Sec. 2(k), USEC Privatization Act: Certain requirements of the USEC Privatization Act do not apply to these programs.

Sec. 2(l), National Security Needs: The Secretary can only make available material the President deems not needed for national security, excluding material needed for the National Nuclear Security Administration or critical missions.

Sec. 2(m), International Agreements: The section must be applied consistently with U.S. international obligations.