A busy few weeks to come in Washington
The next several weeks will see a flurry of activity in Washington, D.C. President Joe Biden signed the infrastructure bill into law yesterday. The busy legislative agenda for the 117th Congress includes Senate consideration of the National Defense Authorization Act (NDAA), discussions in the House on the reconciliation bill, likely passage of a new continuing resolution (CR), and addressing the debt limit. Also, the Department of Energy (DOE) Office of Environmental Management (EM) has been announcing new major contract actions and awards across the DOE complex.
Infrastructure bill
After months of negotiations on the bipartisan infrastructure bill, President Biden signed the legislation into law on November 15. The $1.2 trillion bill first passed by the Senate in August was passed by the House on November 5.
The bill provides $21.5 billion in funding for clean energy demonstrations and research hubs focused on next generation technologies needed to achieve the DOE’s goal of achieving net-zero by 2050. Included in this funding is $8 billion for clean hydrogen, $2.5 billion for advanced nuclear, $1 billion for demonstration projects in rural areas, and $500 million for demonstration projects in economically hard-hit communities.
The legislation also allocates $6 billion for a Civil Nuclear Credit Program designed prevent premature retirement of existing nuclear plants. The program is available for plants that would otherwise retire and that are safe to continue operations.
NDAA
While the House passed its version of the NDAA in September, Senate Majority Leader Chuck Schumer announced the Senate’s version of the legislation will finally get its day in the sun.
“Due to the House pushing back consideration of the [reconciliation bill] to the week of November 15th, it is likely that the Senate considers the NDAA this upcoming week,” Schumer wrote in a Dear Colleague letter on Sunday.
The Senate’s NDAA would authorize nearly $28 billion for the DOE National Security Programs and Authorizations in FY2022. The Senate Armed Services Committee bill recommends:
$20.7 billion for the activities of the National Nuclear Security Administration ($192 million less than the House version)
$6.57 billion for DOE defense environmental cleanup activities through EM ($275 million less than the House version)
$920 million for DOE other defense activities (Same as the House version)
$149.8 million for DOE nuclear energy activities (Same as the House version)
Reconciliation bill
Passage of the massive budget reconciliation bill is likely weeks away, given the packed legislative calendar. The reconciliation bill is a social spending package that includes funding for several programs aimed at combating climate change.
A provision for zero-emission nuclear power production credit is currently included in the bill. Funding would also be provided to DOE’s Office of Science to support research and development related to environmental cleanup, as well as infrastructure projects at various laboratories. DOE’s Office of Nuclear Energy would receive $95 million toward the Versatile Test Reactor and a combined $247 million for various Advanced Test Reactor projects.
The bill also includes economic adjustment assistance, including $500 million “to provide assistance to energy and industrial transition communities, including coal, oil and gas, and nuclear transition communities.”
Continuing resolution and debt limit
In his Dear Colleague letter, Schumer noted Democrats’ goal to process “a short-term Continuing Resolution that we hope will allow more time for a bipartisan, bicameral agreement on FY2022 Appropriations.”
Schumer also expressed his disappointment that both parties have “not yet been able to reach a ‘topline’ agreement on funding levels for FY2022.”
He reaffirmed that a CR is “likely” in order to allow appropriators more time to finish their work.
As of this reporting, 9 out of 12 appropriations bills have passed the House (including Energy and Water) while none have made it out of the Senate.
In addition to government funding, the nation’s debt ceiling will soon be reached if measures are not taken to increase or resolve it.
EM contracts
In recent weeks, EM has announced several major contracts as well as bids for contracts across the DOE complex.
On October 21, DOE released a request for bids for a massive new contract at the Hanford nuclear reservation. It is capped at $45 billion for work over 10 years.
On October 25, DOE awarded United Cleanup Oak Ridge LLC the Oak Ridge Reservation Cleanup Contract at the Oak Ridge Reservation. The contract ceiling is approximately $8.3 billion over a 10-year ordering period.
On October 27, DOE awarded Savannah River Mission Completion, LLW the Integrated Mission Completion Contract at the Savannah River Site. The contract ceiling is approximately $21 billion over a 10-year ordering period.
The status of major EM and NNSA contract awards are available on ECA’s website here.
Want to learn more?
Key actors from DOE, Congress, and industry will be meeting together in Washington to discuss these issues and more at the National Cleanup Workshop, December 7-9. The Workshop provides the opportunity to hear insights from leaders who work on these issues every day, to engage with others on cross-cutting issues, and to learn about the future of EM and the impact to your community.
Please click here to register for virtual or in-person attendance to this can’t-miss conference.