A couple of weeks ago, I was invited to Washington D.C.
I was there to chair a briefing. It was the first internal House bipartisan briefing on a National Infrastructure Bank Bill, H.R.4052.
That bill would enable financing for more economically efficient infrastructure. It would do that by repurposing rather than expanding our national debt.
Nomi speaks to lawmakers on Capitol Hill
While I was on the Hill, another milestone also happened.
I first alerted readers and subscribers to this topic more than a year ago.
Yes. That’s nuclear energy.
On the day I conducted that House briefing, the Senate passed a bill to ban Russian uranium imports.
It’s called the Prohibiting Russian Uranium Imports Act, also known as the Uranium Ban Bill. It would ban U.S. imports of Russian uranium 90 days after enactment.
The bill was approved by unanimous Senate consent on April 30. And last night, President Biden signed it into law. It goes into effect August 11.
This is a big deal. Here’s why…
Uranium is the main fuel that nuclear power plants use.
The bill would create opportunities for domestic uranium mining companies. It would promote job creation and economic growth where these companies operate.
Plus, it would strengthen the stability of the domestic uranium market. It would do that by reducing reliance on foreign sources.
And this bill is only one of many nuclear energy initiatives coming out of Washington.
Cathy McMorris Rodgers also recently introduced a companion bill.
McMorris Rodgers is the chair of the House Energy and Commerce Committee. I wrote about her companion bill after I visited her offices last fall. That bill passed the House on December 11, 2023.
This spells opportunity for readers who are already on board the nuclear trend…
And for the ones that have yet to get in.
Let me explain.
Uranium Supply Chain and Nuclear Energy Policy Accelerates
Nuclear energy already makes up about 20% of all electricity use in the U.S.
And several nuclear energy bills have garnered bipartisan support… ever since Russia invaded Ukraine in February 2022. These bills touch on nuclear supply chains, security, and technology.
There are two main reasons for this policy agreement.
First, nuclear energy provides a way to reduce reliance on fossil fuels. Thus, it promotes long-term energy independence.
Second, controlling uranium supply, sourcing, and processing technologies promotes national and economic security. It reduces foreign supply chain dependence.
The U.S. wants to rely less on imported fossil fuels or energy resources. And it wants to shift towards nuclear energy produced at home.
That way, it can reduce its exposure to geopolitical tensions… price fluctuations… and supply disruptions.
That’s why it made a commitment to triple the use of nuclear power by 2050.
That entails greater reliance on the supply of uranium. As well as technologies to convert uranium into nuclear energy. Technologies that do that in a way that is efficient and effective.
In a moment, I’ll show you how you can take advantage of this shift. But first, let’s recap the bills in Washington that are driving it.
The Nuclear Energy Distortion Gains Steam
The major nuclear energy bills that have passed, or I believe will pass this year, include:
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The Nuclear Fuel Security Act.
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The Accelerating Deployment of Versatile, Advanced Nuclear for Clean Energy (ADVANCE) Act.
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The Atomic Energy Act (AEA).
This act passed the House in late February. But I want to put it on your radar because I believe it’s very likely to pass the Senate and become law this year.
The AEA includes provisions to strengthen the regulatory framework for the nuclear sector. It enhances nuclear safety standards and promotes transparency and accountability in the industry.
Plus, it supports research and development of advanced nuclear technologies. Technologies that would strengthen the ADVANCE Act.
This bill was signed into law as part of the National Defense Authorization Act (NDAA) on December 22, 2023. It received a greenlight for funding when the 2024 U.S. budget was passed in March 2024.
The Nuclear Fuel Security Act contains several key provisions for enhancing national security. As well as for promoting a secure nuclear fuel supply chain. The most important one is establishing a strategic uranium reserve. This is to ensure domestic supply of uranium for national defense purposes.
It also establishes new programs and expands existing programs. The goal is to increase domestic supplies of certain types of uranium for nuclear energy. That includes the kind of uranium that advanced reactors use.
This act passed the House last week, on May 8. It was attached to S.870, the Fire Grants and Safety Act. It was approved by a vote of 393-13.
The overwhelming bipartisan vote in favor of the ADVANCE Act underscores one thing. It shows that there is support – on both sides of the aisle – for nuclear as a clean and reliable source of energy. And for promoting energy independence and national security.
I first alerted you to the ADVANCE Act in the May 23, 2023 edition of Inside Wall Street. It would promote versatile and advanced nuclear technologies… for energy production that is clean and economically efficient.
And it would provide funding for research and development for advanced nuclear reactors. That includes small modular reactors (SMRs) and microreactors.
Together, these measures would increase U.S. security… and control… over its uranium supply chain.
By relying on domestic and allied sources, the U.S. and its allies can mitigate geopolitical risks. And they can mitigate global market supply chain disruptions.
Plus, domestic uranium sourcing and processing can lead to economic benefits. Benefits like creating jobs… and supporting local industries and U.S.-based companies.
These bills cement a broad arc of nuclear energy sector policy momentum. That momentum spans uranium sourcing through technological advancements in nuclear power.
And that brings me back to the Uranium Ban Bill.
It’s perhaps the most critical bill in this arena for our national security. And the White House signed it into law last night.
It’s one more bipartisan policy directive for nuclear energy… one that will wean America off uranium supplied by foreign adversaries. All while the U.S. amplifies its commitment to nuclear power.
And you can take advantage of this momentum in the uranium and nuclear energy space.
One way to do that is to buy the Global X Uranium ETF (URA). Many of its top holdings are U.S.-based or allied uranium companies.
Regards,
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Nomi Prins
Editor, Inside Wall Street with Nomi Prins