Economic Recovery for Nuclear-Affected Communities Act

Overview

• Bill: HR 7796
• Session: 119th Congress
• Title: Economic Recovery for Nuclear-Affected Communities Act
• Purpose: To assist communities affected by stranded nuclear waste, and for other purposes.

Main purpose and intent

• Provide targeted economic relief and development tools for communities hosting stranded nuclear waste or decommissioned/soon-to-be decommissioned civilian nuclear power plants.
• Create a framework of incentives, grants, and a prize competition to stimulate alternative economic development and address fiscal and social impacts from stranded waste and plant decommissioning.
• Expand and adapt existing federal support mechanisms (notably drawing on concepts from the Nuclear Waste Policy Act) to a broader set of affected communities.

Key provisions and changes

1. Definitions and findings

   • Defines “nuclear affected community,” “stranded nuclear waste,” and “eligible civilian nuclear power plant.”
   • Identifies a broad list of states with impacted communities (e.g., CA, CT, FL, IL, KS, ME, MD, MA, MI, NY, OH, OR, VT, WI).
   • Reiterates that stranded waste acts as an obstacle to economic development and redevelopment of sites.

2. Tax incentives for affected communities (Sec. 4)

   • Creates a new first-time homebuyer tax credit specifically for nuclear affected communities (office of the credit is renamed to reflect this purpose).
   • Modifies the existing first-time homebuyer credit provisions to apply within nuclear affected communities.
   • Effective date: Applies to purchases of principal residences after enactment.

3. Innovative solutions prize competition (Sec. 5)

   • Establishes a prize competition within 180 days of enactment to reward proposals for alternatives to nuclear facilities, generating sites, and waste sites.
   • Creates an advisory prize board (at least 9 members) with expertise in nuclear waste, workforce, technology, and economic development; may include National Labs, nonprofits, and higher education institutions.
   • Award amount per winning proposal: $500,000.
   • Pilot program: Administrator to develop a pilot project based on the winning proposal; up to $500,000 from available funds may be used for this purpose.
   • After-award reporting: Administrator must provide a Congressional report detailing the winning proposal within 60 days of prize award.

4. Economic impact grants for affected communities (Sec. 6)

   • Establishes a noncompetitive grant program within 120 days to provide grants to nuclear-affected communities.
   • Grants may be used to offset economic and social impacts of stranded waste and to support communities decommissioning plants with reduced tax revenue or assessed valuation.
   • Grant amounts: For each eligible plant, grants equal to $15 per kilogram of spent nuclear fuel stored at the site (consistent with impact assistance scaling under the Nuclear Waste Policy Act).
   • Frequency and limits: One grant per eligible unit of local government per fiscal year.
   • Alternative threshold-based grants: Provides additional grants based on lost tax revenue compared to the previous 5-year average, for a period of 8 years. Eligible communities must show a significant revenue decline:
     • Loss thresholds: minimum 20% decline in overall tax revenue; and at least 20% decline in nuclear-plant-related tax revenue relative to the 5-year average.
   • Grant amounts under this section: Capped at $10 million per year and scaled over an 8-year period (80% of losses in year 1 down to 10% in year 8, following a tiered schedule).
   • Documentation and eligibility: Requires appropriate applications and evidence of revenue loss.

5. Authorization of appropriations (Sec. 7)

   • Overall funding: $110 million per year for fiscal years 2026–2031; $120 million per year for fiscal years 2032–2036.
   • No offsets; funds cannot be used to offset other federal programs.
   • Grant caps and limitations: No community may receive more than one grant per calendar year, and cannot receive grants under Secs. 6(b) and 6(c) in the same year.

Who would be affected

• Nuclear affected communities: counties, cities, towns, school districts, and other local government units hosting stranded nuclear waste or decommissioned/decommissioning plants.
• Eligible civilian nuclear power plants: sites with stranded waste or decommissioning activity.
• Stakeholders benefiting from program funding: local governments, school districts, and related agencies within affected communities.
• Broader policy and industry actors: potential participants in the prize competition and recipients of economic impact grants.

Procedural and timeline aspects

• Referred to multiple committees: Transportation and Infrastructure; Financial Services; Ways and Means (for provisions within their jurisdiction).
• Prize competition established within 180 days after enactment.
• Economic impact grants program established within 120 days after enactment.
• Pilot project funding available from the prize competition up to $500,000.
• Annual appropriations authorized through 2036; no offsets permitted.

Potential impacts and considerations

• Provides a structured set of fiscal tools to mitigate economic harm from stranded nuclear waste and plant decommissioning.
• Aims to incentivize economic diversification and redevelopment of sites currently limited by waste storage concerns.
• Creates a formal mechanism to quantify and compensate revenue losses, potentially stabilizing local budgets and tax bases.
• The effectiveness depends on appropriation levels, timely administration, and the design of the prize competition and grant criteria.