Nuclear Fuel Storage Improvement Act of 2011 - Directs the Secretary of Energy (DOE) to offer to enter into temporary used fuel storage facility agreements in accordance with this Act.
Sets a deadline by which a local governmental unit may, with the approval of the state governor, notify the Secretary that it is willing to have a privately owned and operated temporary used fuel storage facility located within its jurisdiction.
Requires the Secretary to pay $1 million per year to up to three such governmental units.
Makes funding available from the Nuclear Waste Fund for compensation and payments.
Directs the Secretary to offer to enter into a long-term contract for the storage of used fuel from civilian nuclear power plants with a private owner or operator of an independent used fuel storage facility licensed by the Nuclear Regulatory Commission (NRC).
Authorizes the Secretary, upon request of a contract signatory, to enter into an agreement for a settlement of all claims against the Secretary for failure to dispose of high-level radioactive waste or used nuclear fuel by January 31, 1998.
Directs the Secretary to grant priority for the acceptance of fuel produced by a facility that has produced used nuclear fuel, been decommissioned, and shut down permanently.
Requires the Secretary to: (1) provide for the transportation of accepted used fuel, and (2) use NRC-approved transportation and storage casks.
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