KRS 164.2805: Nuclear Reactor Site Readiness Pilot Program -- Definitions for section --

Grants -- Application process -- Eligibility.

(1) As used in this section:

(a) "Affiliate" means any person, partnership, or corporation that controls, is

controlled by, or is under common control with, a utility;

(b) "Authority" means the Kentucky Nuclear Energy Development Authority

established in KRS 164.2802;

(c) "Combined operating license" means a license issued by the United States

Nuclear Regulatory Commission pursuant to 10 C.F.R. sec. 52.71 et seq., or

other licensing frameworks as may be adopted in federal regulations by the

United States Nuclear Regulatory Commission for advanced nuclear

generating reactors, that enables its holder to construct and operate a nuclear

power plant at a specific site;

(d) "Construction permit" means a permit issued by the United States Nuclear

Regulatory Commission pursuant to 10 C.F.R. pt. 50 that enables its holder to

construct a nuclear power plant at a specific site;

(e) "Early site permit" means a permit issued by the United States Nuclear

Regulatory Commission pursuant to 10 C.F.R. sec. 52.12 et seq., that enables

its holder to secure federal site approval for a nuclear power plant site prior to

seeking an operating reactor license from the United States Nuclear

Regulatory Commission;

(f) "Eligible applicant" means any utility or any affiliate of a utility and any

current or prospective customer of a utility that is acting in partnership or

collaboration with the utility or the affiliate;

(g) "Generation III Plus" means the generation of nuclear reactor design

following Generation III that incorporates passive and other safety measures

and design improvements not included in previous nuclear reactor designs;

(h) "Generation IV" means the nuclear reactor designs identified and selected by

the Generation IV International Forum as follows:

1. Sodium-cooled fast reactors;

2. Gas-cooled fast reactors;

3. Lead-cooled fast reactors;

4. Molten salt reactors;

5. Supercritical water-cooled reactors; and

6. Very high temperature reactors;

(i) "Nuclear energy generating facility" means a facility containing a nuclear

reactor of Generation III Plus, Generation IV, or later design that produces

electricity, at least some of which is sold to the public; and

(j) "Utility" means a person, firm, corporation, association, cooperative

corporation, federally owned electric utility corporation, or municipal

corporation who owns, controls, operates, or manages any facility used or to

be used for or in connection with the generation, production, transmission, or

distribution of electricity to or for the public for compensation.

(2) (a) The authority shall create and implement the Nuclear Reactor Site Readiness

Pilot Program to fac ilitate the application for and procurement of early site

permits, construction permits, or combined operating licenses from the United

States Nuclear Regulatory Commission for the siting of new nuclear energy

generating facilities in the Commonwealth.

(b) Upon recommendation of the authority, the General Assembly may award

eligible applicants grant funding of up to one -third (1/3) of the actual costs

incurred in applying for and procuring an early site permit, construction

permit, or combined operating lic ense, not to exceed twenty -five million

dollars ($25,000,000) per project.

(c) The authority shall:

1. Create grant applications;

2. Establish grant applicant eligibility requirements;

3. Establish objective scoring criteria to evaluate grant applications;

4. Review any partnership agreement between eligible applicants for

validity and completeness and to ensure that the agreement provides for

the surety bonding or similar security requirements required under

subsection (4) of this section and repayment res ponsibilities for all

partners in the event that forfeiture and repayment of grant funding is

required under subsection (5) of this section; and

5. Make determinations on applicant eligibility and evaluate and score

each eligible applicant's grant applicat ion, in consultation with the

Energy and Environment Cabinet's Office of Energy Policy and the

Cabinet for Economic Development, according to the following criteria:

a. The location, suitability, and previous use of the site for which the

early site permit , construction permit, or combined operating

license is sought;

b. The economic condition of the region where the new nuclear

energy generating facility would be located;

c. The economic impact that the siting of a new nuclear energy

generating facility would have in the region;

d. Whether, in relation to other pending or past grant applications or

awards under this section, the proposed site would be located in a

geographically diverse region of the Commonwealth;

e. The amount of additional investment bein g made in the proposed

project by the eligible applicant or applicants or other sources; and

f. Any other criteria the authority deems appropriate to evaluate.

(d) Notwithstanding any provision of law to the contrary, any information, data,

or records prov ided as part of an application for grant funding under this

section shall be confidential and exempt from disclosure under the

requirements of KRS 61.870 to 61.884.

(3) (a) To be eligible to apply for grant funding under this section, eligible applicants

must demonstrate that:

1. The community where the proposed site of the new nuclear energy

generating facility would be located has applied for a nuclear -ready

community designation under KRS 164.2804; and

2. There would be material benefits, including but n ot limited to the

provision of electric utility service, job creation, and return on

investment to the ratepayers and the impacted community to be served

by the proposed new nuclear energy generating facility.

(b) To be eligible to be awarded grant funding under this section, eligible

applicants must demonstrate that the community where the proposed site of

the new nuclear energy generating facility would be located has received a

nuclear-ready community designation under KRS 164.2804.

(4) In exchange for any grant funding authorized by the General Assembly under this

section, the utility or the affiliate and any partners it may have shall procure a surety

bond or other similar security acceptable to the authority in the amount of the grant

funding to be awarded. The surety bond or similar security shall bind the principal

or principals and the surety to the Commonwealth to repay all grant moneys

forfeited pursuant to subsection (5) of this section. The surety bond or other similar

security shall be continuous and remain in effect until the completion of the

construction of the nuclear energy generating facility for which the permit or

license was issued or upon the repayment of all forfeited grant funds pursuant to

subsection (5) of this section. Any cancellation of the bond or similar security shall

not occur until thirty (30) days written notice is provided by the provider of the

surety bond or other similar security to the authority.

(5) A grant funding recipient an d all of its partners shall forfeit and repay all grant

funding awarded under this section within sixty (60) days of:

(a) If it has not already done so, failing to apply to the United States Nuclear

Regulatory Commission for an early site permit within one (1) year of

receiving any grant funding under this section;

(b) Failing to apply to the United States Nuclear Regulatory Commission for a

construction permit or combined operating license for a nuclear energy

generating facility, or for a necessary licens e issued under other licensing

frameworks that may be adopted in federal regulations by the United States

Nuclear Regulatory Commission for advanced nuclear generating reactors, for

which an early site permit was awarded within five (5) years of obtaining the

early site permit. The authority may approve extensions of the deadline

established by this paragraph in one (1) year increments for good cause

shown;

(c) Failing to commence construction of the nuclear energy generating facility for

which all necessar y permits or licenses have been awarded by the United

States Nuclear Regulatory Commission within ten (10) years of obtaining all

necessary permits or licenses. The authority may approve extensions of the

deadline established by this paragraph in one (1) y ear increments for good

cause shown; or

(d) The transferring of the entirety of a utility's or affiliate's interest in the early

site permit, the construction permit, or the combined operating license to an

entity other than another utility prior to the co mmencement of construction of

the nuclear energy generating facility for which a permit or license was

awarded, unless the authority finds that the transfer is in the best interest of

the Commonwealth.