S3293-119

What This Bill Does

This is the fiscal year 2026 appropriations bill for energy and water development agencies, providing funding to the Department of Energy, Army Corps of Engineers, Bureau of Reclamation, and Nuclear Regulatory Commission. The bill establishes spending levels, sets oversight requirements for agency spending, and makes significant policy changes including redirecting $2.4 billion from carbon capture programs to nuclear energy projects and authorizing new federal consolidated storage facilities for spent nuclear fuel.

Who Benefits and How

Nuclear energy industry receives the largest benefits, with $2.4 billion redirected from carbon capture programs to fund advanced reactor demonstrations (like TerraPower and X-energy), commercial nuclear deployment, and advanced nuclear fuel manufacturing. The bill also authorizes new consolidated interim storage for spent nuclear fuel, reducing costs for nuclear plant operators with stranded waste.

Transformer and electrical grid component manufacturers benefit from $75 million transferred to support domestic manufacturing of power transformers and grid components, addressing current supply chain shortages.

Western Area Power Administration customers benefit from a provision preventing funds from being transferred to the Treasury, keeping electricity rates lower for customers in Western states.

North Dakota water users receive an additional $50 million authorization for Garrison Diversion water projects with inflation indexing.

Non-federal sponsors of major flood projects can receive advance federal payments to complete flood risk management projects exceeding $700 million.

DOE grant recipients gain new protections requiring 120-day notice and 90-day restructuring period before any award termination.

Who Bears the Burden and How

Carbon capture and CO2 transportation projects lose $1.5 billion in previously appropriated IIJA funding, which is redirected to nuclear energy.

Hydrogen hub demonstration projects lose $75 million to grid deployment programs.

Defense Nuclear Nonproliferation programs face a $39 million permanent rescission from unobligated balances.

Federal agencies (Corps, Reclamation, DOE, NRC) face increased compliance burdens with extensive Congressional notification requirements for reprogramming funds, making grants, and award decisions.

San Luis Unit agricultural water users in California must fully reimburse the federal government for drainage service costs.

Key Provisions

• $2.4B Nuclear Energy Boost: Redirects funds from CO2 transportation ($1.5B) and consolidates nuclear energy funds ($900M) for advanced reactor demonstrations, commercial deployment, and advanced nuclear fuel programs

• Spent Nuclear Fuel Storage: Authorizes DOE to establish consolidated interim storage facilities for spent nuclear fuel using consent-based siting, with priority for sites without operating reactors

• Grid Infrastructure: Transfers $75M for domestic manufacturing of power transformers and grid components to address supply chain shortages

• Congressional Oversight: Requires 3-day advance notice for DOE grants over $1M, 30-day notice for creating or eliminating programs, and extensive reporting requirements

• Award Termination Protection: Requires 120-day notice and 90-day restructuring opportunity before DOE can terminate discretionary awards

• Lake Erie Dredging: Prohibits open lake placement of dredged material unless approved under state water quality certification