[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[S. 3126 Introduced in Senate (IS)]
110th CONGRESS
2d Session
S. 3126
To provide for the development of certain traditional and alternative
energy resources, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
June 12, 2008
Mr. Coleman introduced the following bill; which was read twice and
referred to the Committee on Finance
_______________________________________________________________________
A BILL
To provide for the development of certain traditional and alternative
energy resources, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Energy Resource
Development Act of 2008''.
(b) Table of Contents.--The table of contents of this Act is as
follows:
Sec. 1. Short title; table of contents.
Sec. 2. Definition of Secretary.
TITLE I--TRADITIONAL RESOURCES
Sec. 101. Revocation of withdrawal of certain areas of the outer
Continental Shelf.
Sec. 102. State authority to protect certain coastal areas.
Sec. 103. Production of oil and natural gas in new producing areas.
TITLE II--ALTERNATIVE RESOURCES
Subtitle A--Renewable Fuel and Advanced Energy Technology
Sec. 201. Energy Independence Trust Fund.
Sec. 202. Loan guarantees for renewable fuel pipelines.
Subtitle B--Clean Coal-Derived Fuels for Energy Security
Sec. 211. Definitions.
Sec. 212. Clean coal-derived fuel program.
Subtitle C--Nuclear Energy
Sec. 221. Incentives for innovative technologies.
Sec. 222. Authorization for Nuclear Power 2010 Program.
Sec. 223. Domestic manufacturing base for nuclear components and
equipment.
Sec. 224. Nuclear energy workforce.
Sec. 225. Investment tax credit for investments in nuclear power
facilities.
SEC. 2. DEFINITION OF SECRETARY.
In this Act, the term ``Secretary'' means the Secretary of Energy.
TITLE I--TRADITIONAL RESOURCES
SEC. 101. REVOCATION OF WITHDRAWAL OF CERTAIN AREAS OF THE OUTER
CONTINENTAL SHELF.
The ``Memorandum on Withdrawal of Certain Areas of the United
States Outer Continental Shelf from Leasing Disposition'', 34 Weekly
Comp. Pres. Doc. 1111, dated June 12, 1998, is revoked and no longer in
effect regarding any area on the outer Continental Shelf covered by
sections 104 and 105 of the Department of the Interior, Environment,
and Related Agencies Appropriations Act, 2008 (Public Law 110-161; 121
Stat. 2118).
SEC. 102. STATE AUTHORITY TO PROTECT CERTAIN COASTAL AREAS.
Section 19 of the Outer Continental Shelf Lands Act (43 U.S.C.
1345) is amended by adding at the end the following:
``(f) Approval by Certain Affected States.--
``(1) Definition of affected state.--In this subsection,
the term `affected State' means a State that the Secretary, in
consultation with the Administrator of the Environmental
Protection Agency, determines could be affected negatively by
the potential environmental or economic impacts of a proposed
lease sale or proposed development and production plan under
this Act.
``(2) Notice to affected states.--Not later than 30 days
before the date of a proposed lease sale or the publication of
a proposed development and production plan, the Secretary shall
submit to the Governor of each affected State notice of the
proposed sale or plan.
``(3) Authorities of affected states.--Not later than 60
days after the date on which the Secretary provides to the
Governor of an affected State notice under paragraph (2), the
Governor of the affected State shall submit to the Secretary a
written response to the proposed sale or plan that--
``(A) specifies whether the Governor--
``(i) accepts the sale or plan as proposed;
``(ii) accepts the sale or plan with
modification; or
``(iii) vetoes the proposed sale or plan;
and
``(B) in the case of subparagraph (A)(ii), includes
a counterproposal that describes--
``(i) any proposed modifications to--
``(I) the proposed plan; or
``(II) the size, time, or location
of the proposed sale; and
``(ii) any areas off the coast of the State
that the Governor recommends for long-term
protection in the form of a moratorium on
leasing for a period of not more than 20 years
based on--
``(I) any information in existence
on the date of the counterproposal
concerning the geographical,
geological, and ecological
characteristics of the areas proposed
for protection;
``(II) an equitable sharing of
developmental benefits and
environmental risks among the areas;
``(III) the location of the areas
with respect to--
``(aa) other uses of the
sea and seabed in the areas,
including fisheries,
navigation, existing or
proposed sealanes, potential
sites of deepwater ports; and
``(bb) other anticipated
uses of the resources and space
of other areas of the outer
Continental Shelf;
``(IV) any relevant laws, goals,
and policies of the State; and
``(V) the relative environmental
sensitivity and marine productivity of
other areas of the outer Continental
Shelf.
``(4) Secretarial response.--
``(A) In general.--As soon as practicable after the
Secretary receives a counterproposal under paragraph
(3)(B), the Secretary, in consultation with the
Secretary of Defense, shall--
``(i) approve the counterproposal without
modification;
``(ii) attempt to enter into an agreement
with the Governor to modify the
counterproposal; or
``(iii) deny the counterproposal.
``(B) Approval of agreement.--To be valid, an
agreement entered into under subparagraph (A)(ii)
requires the approval of the Governor, the Secretary,
and the Secretary of the Defense.''.
SEC. 103. PRODUCTION OF OIL AND NATURAL GAS IN NEW PRODUCING AREAS.
The Outer Continental Shelf Lands Act (43 U.S.C. 1331 et seq.) is
amended by adding at the end the following:
``SEC. 32. PRODUCTION OF OIL AND NATURAL GAS IN NEW PRODUCING AREAS.
``(a) Definitions.--In this section:
``(1) Coastal political subdivision.--The term `coastal
political subdivision' means a political subdivision of a new
producing State any part of which political subdivision is--
``(A) within the coastal zone (as defined in
section 304 of the Coastal Zone Management Act of 1972
(16 U.S.C. 1453)) of the new producing State as of the
date of enactment of this section; and
``(B) not more than 200 nautical miles from the
geographic center of any leased tract.
``(2) Moratorium area.--
``(A) In general.--The term `moratorium area' means
an area covered by sections 104 through 105 of the
Department of the Interior, Environment, and Related
Agencies Appropriations Act, 2008 (Public Law 110-161;
121 Stat. 2118).
``(B) Exclusion.--The term `moratorium area' does
not include an area located in the Gulf of Mexico.
``(3) New producing area.--The term `new producing area'
means any moratorium area beyond the submerged land of a new
producing State.
``(4) New producing state.--The term `new producing State'
means a State that has received notice of a proposed lease sale
for a new producing area under section 19(f)(2).
``(5) Qualified outer continental shelf revenues.--
``(A) In general.--The term `qualified outer
Continental Shelf revenues' means all rentals,
royalties, bonus bids, and other sums due and payable
to the United States from leases entered into on or
after the date of enactment of this section for new
producing areas.
``(B) Exclusions.--The term `qualified outer
Continental Shelf revenues' does not include--
``(i) revenues from a bond or other surety
forfeited for obligations other than the
collection of royalties;
``(ii) revenues from civil penalties;
``(iii) royalties taken by the Secretary
in-kind and not sold;
``(iv) revenues generated from leases
subject to section 8(g); or
``(v) any revenues considered qualified
outer Continental Shelf revenues under section
102 of the Gulf of Mexico Energy Security Act
of 2006 (43 U.S.C. 1331 note; Public Law 109-
432).
``(b) Availability for Leasing.--On approval by the new producing
State of a proposed lease sale for a new producing area under section
19(f), the Secretary shall conduct the proposed lease sale for the new
producing area.
``(c) Disposition of Qualified Outer Continental Shelf Revenues
From New Producing Areas.--
``(1) In general.--Notwithstanding section 9 and subject to
the other provisions of this subsection, for each applicable
fiscal year, the Secretary of the Treasury shall deposit--
``(A) 50 percent of qualified outer Continental
Shelf revenues--
``(i) in the fund established by section
201 of the Energy Resource Development Act of
2008; or
``(ii) if the Secretary of the Treasury
determines that the fund described in clause
(i) is fully funded, in the general fund of the
Treasury; and
``(B) 50 percent of qualified outer Continental
Shelf revenues in a special account in the Treasury
from which the Secretary shall disburse--
``(i) 75 percent to new producing States in
accordance with paragraph (2); and
``(ii) 25 percent to provide financial
assistance to States in accordance with section
6 of the Land and Water Conservation Fund Act
of 1965 (16 U.S.C. 460l-8), which shall be
considered income to the Land and Water
Conservation Fund for purposes of section 2 of
that Act (16 U.S.C. 460l-5).
``(2) Allocation to new producing states and coastal
political subdivisions.--
``(A) Allocation to new producing states.--
Effective for fiscal year 2008 and each fiscal year
thereafter, the amount made available under paragraph
(1)(B)(i) shall be allocated to each new producing
State in amounts (based on a formula established by the
Secretary by regulation) proportional to the amount of
qualified outer Continental Shelf revenues generated in
the new producing area offshore each State.
``(B) Payments to coastal political subdivisions.--
``(i) In general.--The Secretary shall pay
20 percent of the allocable share of each new
producing State, as determined under
subparagraph (A), to the coastal political
subdivisions of the new producing State.
``(ii) Allocation.--The amount paid by the
Secretary to coastal political subdivisions
shall be allocated to each coastal political
subdivision in accordance with subparagraphs
(B) and (C) of section 31(b)(4).
``(3) Minimum allocation.--The amount allocated to a new
producing State for each fiscal year under paragraph (2) shall
be at least 5 percent of the amounts available under for the
fiscal year under paragraph (1)(B)(i).
``(4) Timing.--The amounts required to be deposited under
subparagraph (B) of paragraph (1) for the applicable fiscal
year shall be made available in accordance with that
subparagraph during the fiscal year immediately following the
applicable fiscal year.
``(5) Authorized uses.--
``(A) In general.--Subject to subparagraph (B),
each new producing State and coastal political
subdivision shall use all amounts received under
paragraph (2) in accordance with all applicable Federal
and State laws, only for 1 or more of the following
purposes:
``(i) Projects and activities for the
purposes of coastal protection, including
conservation, coastal restoration, and
hurricane protection.
``(ii) Mitigation of damage to fish,
wildlife, or natural resources.
``(iii) Implementation of a federally-
approved marine, coastal, or comprehensive
conservation management plan.
``(iv) Mitigation of the impact of outer
Continental Shelf activities through the
funding of onshore projects.
``(v) Planning assistance and the
administrative costs of complying with this
section.
``(B) Limitation.--Not more than 3 percent of
amounts received by a new producing State or coastal
political subdivision under paragraph (2) may be used
for the purposes described in subparagraph (A)(v).
``(6) Administration.--Amounts made available under
paragraph (1)(B) shall--
``(A) be made available, without further
appropriation, in accordance with this subsection;
``(B) remain available until expended; and
``(C) be in addition to any amounts appropriated
under--
``(i) other provisions of this Act;
``(ii) the Land and Water Conservation Fund
Act of 1965 (16 U.S.C. 460l-4 et seq.); or
``(iii) any other provision of law.
``(d) Disposition of Qualified Outer Continental Shelf Revenues
From Other Areas.--Notwithstanding section 9, for each applicable
fiscal year, the terms and conditions of subsection (c) shall apply to
the disposition of qualified outer Continental Shelf revenues that--
``(1) are derived from oil or gas leasing in an area that
is not included in the current 5-year plan of the Secretary for
oil or gas leasing; and
``(2) are not assumed in the budget of the United States
Government submitted by the President under section 1105 of
title 31, United States Code.
``(e) Due Diligence Required.--
``(1) New producing area leases.--Each lease entered into
under this section shall provide that if a lessee fails to
initiate development of the oil or gas resources in the new
producing area subject to the lease by the date that is 2 years
after the date of the issuance of the lease--
``(A) the lease shall terminate; and
``(B) the Secretary shall conduct a new lease sale
for the new producing area that was subject to the
terminated lease.
``(2) Existing leases.--
``(A) In general.--Any lease entered into under any
other section of this Act that is in effect on the date
of enactment of this section shall terminate at the end
of the 10-year lease period specified in the lease.
``(B) Availability for leasing.--The Secretary
shall conduct a new lease sale for any area subject to
a lease terminated under subparagraph (A) in accordance
with this Act.
``(C) Lease requirements.--Any lease issued under a
lease sale conducted under subparagraph (B) shall
provide that if a lessee fails to initiate development
of the oil or gas resources in the area subject to the
lease by the date that is 2 years after the date of the
issuance of the lease--
``(i) the lease shall terminate; and
``(ii) the Secretary shall conduct a new
lease sale for the area that was subject to the
terminated lease.''.
TITLE II--ALTERNATIVE RESOURCES
Subtitle A--Renewable Fuel and Advanced Energy Technology
SEC. 201. ENERGY INDEPENDENCE TRUST FUND.
(a) Establishment.--There is established in the Treasury of the
United States a revolving fund, to be known as the ``Energy
Independence Trust Fund'' (referred to in this section as the
``Fund''), consisting of such amounts as are deposited in the Fund
under section 32(c)(1)(A)(i) of the Outer Continental Shelf Lands Act
(as added by section 102).
(b) Expenditures From Fund.--
(1) In general.--Subject to paragraph (2), on request by
the Secretary, the Secretary of the Treasury shall transfer
from the Fund to the Secretary such amounts as the Secretary
determines are necessary to carry out the following:
(A) Section 609 of the Public Utility Regulatory
Policies Act of 1978 (7 U.S.C. 918c).
(B) Title V of the Toxic Substances Control Act (15
U.S.C. 2695 et seq.).
(C) Sections 211(r), 212, and 329 of the Clean Air
Act (42 U.S.C. 7545(r), 7546, 7628).
(D) The following provisions of the Energy Policy
and Conservation Act:
(i) Section 324A (42 U.S.C. 6294a).
(ii) Section 337(c) (42 U.S.C. 6307(c)).
(iii) Section 365(f) (42 U.S.C. 6325(f)).
(iv) Part E of title III (42 U.S.C. 6341 et
seq.).
(v) Section 399A (42 U.S.C. 6371h-1).
(E) The following provisions of the Energy Policy
Act of 2005:
(i) Section 107 (42 U.S.C. 15812).
(ii) The amendments made by section 123
(119 Stat. 616).
(iii) Sections 124 through 127 (42 U.S.C.
15821 through 15824).
(iv) The amendments made by section 128
(119 Stat. 619).
(v) Sections 133 and 134 (42 U.S.C. 15831,
15832).
(vi) Section 140 (42 U.S.C. 15833).
(vii) Section 201 (42 U.S.C. 15851).
(viii) The amendments made by section 202
(119 Stat. 651).
(ix) The amendments made by section 206
(119 Stat. 654).
(x) Section 207 (119 Stat. 656).
(xi) Sections 208 and 210 (42 U.S.C. 15854,
15855).
(xii) Sections 242 and 243 (42 U.S.C.
15881, 15882).
(xiii) The amendments made by section 251
(119 Stat. 679).
(xiv) Section 252 (42 U.S.C. 15891).
(xv) Sections 706, 712, 721, and 731 (42
U.S.C. 16051, 16062, 16071, 16081).
(xvi) Subtitle C of title VII (42 U.S.C.
16091 et seq.).
(xvii) Sections 751 and 755 through 758 (42
U.S.C. 16101, 16103 through 16106).
(xviii) Section 771 (119 Stat. 834).
(xix) Sections 782 and 783 (42 U.S.C.
16122, 16123).
(xx) Sections 805, 808, 809, and 812 (42
U.S.C. 16154, 16157, 16158, 16161).
(xxi) Sections 911, 917, 921, and 931 (42
U.S.C. 16191, 16197, 16211, 16231).
(xxii) The amendments made by section 941
(119 Stat. 873).
(xxiii) Sections 942, 944 through 947, and
963 (42 U.S.C. 16251, 16253 through 16256,
16293).
(xxiv) Sections 1510, 1514, and 1516 (42
U.S.C. 16501, 16502, 16503).
(F) The following provisions of the Energy
Independence and Security Act of 2007:
(i) Sections 131 and 135 (42 U.S.C. 17011,
17012).
(ii) Sections 207, 223, 229, 230, 234, 244,
and 246 (42 U.S.C. 17022, 17032, 17033, 17034,
17035, 17052, 17053).
(iii) Section 243 (121 Stat. 1540).
(iv) Section 411 (42 U.S.C. 6872 note;
Public Law 110-140).
(v) Sections 422, 440, 452, 491, and 495
(42 U.S.C. 17082, 17096, 17111, 17121, 17124).
(vi) Section 501 (121 Stat. 1655).
(vii) Section 502 (2 U.S.C. 2169).
(viii) The amendments made by section 505
(121 Stat. 1656).
(ix) Section 517 (42 U.S.C. 17131).
(x) Subtitle E of title V (42 U.S.C. 17151
et seq.).
(xi) Section 602 (42 U.S.C. 17171).
(xii) Sections 604 through 607 (42 U.S.C.
17172 through 17175).
(xiii) Subtitles B through E of title VI
(42 U.S.C. 17191 et seq.) (other than section
653).
(xiv) Sections 703, 705, 707, 708, 711, and
712 (42 U.S.C. 17251, 17253, 17255, 17256,
17271, 17272).
(xv) Sections 805 and 807 (42 U.S.C. 17284,
17286).
(xvi) Sections 912, 913, 916, 917, 925, and
927 (42 U.S.C. 17332, 17333, 17336, 17337,
17355, 17357).
(G) Section 202.
(H) Subtitle C.
(2) Administrative expenses.--An amount not exceeding 5
percent of the amounts in the Fund shall be available for each
fiscal year to pay the administrative expenses necessary to
carry out this section.
(c) Transfers of Amounts.--
(1) In general.--The amounts required to be transferred to
the Fund under this section shall be transferred at least
monthly from the general fund of the Treasury to the Fund on
the basis of estimates made by the Secretary of the Treasury.
(2) Adjustments.--Proper adjustment shall be made in
amounts subsequently transferred to the extent prior estimates
were in excess of or less than the amounts required to be
transferred.
SEC. 202. LOAN GUARANTEES FOR RENEWABLE FUEL PIPELINES.
(a) Definitions.--In this section:
(1) Cost.--The term ``cost'' has the meaning given the term
``cost of a loan guarantee'' in section 502(5)(C) of the
Federal Credit Reform Act of 1990 (2 U.S.C. 661a(5)(C)).
(2) Eligible project.--The term eligible project means a
project described in subsection (b)(1).
(3) Guarantee.--
(A) In general.--The term ``guarantee'' has the
meaning given the term ``loan guarantee'' in section
502 of the Federal Credit Reform Act of 1990 (2 U.S.C.
661a).
(B) Inclusion.--The term ``guarantee'' includes a
loan guarantee commitment (as defined in section 502 of
the Federal Credit Reform Act of 1990 (2 U.S.C. 661a)).
(4) Renewable fuel.--The term ``renewable fuel'' has the
meaning given the term in section 211(o)(1) of the Clean Air
Act (42 U.S.C. 7545(o)(1)) (as in effect on January 1, 2009).
(5) Renewable fuel pipeline.--The term ``renewable fuel
pipeline'' means a common carrier pipeline for transporting
renewable fuel.
(b) Loan Guarantees.--
(1) In general.--The Secretary shall make guarantees under
this section for projects that provide for the construction of
new renewable fuel pipelines.
(2) Eligibility.--In determining the eligibility of a
project for a guarantee under this section, the Secretary shall
consider--
(A) the volume of renewable fuel to be moved by the
renewable fuel pipeline;
(B) the size of the markets to be served by the
renewable fuel pipeline;
(C) the existence of sufficient storage to
facilitate access to the markets served by the
renewable fuel pipeline;
(D) the proximity of the renewable fuel pipeline to
ethanol production facilities;
(E) the investment of the entity carrying out the
proposed project in terminal infrastructure;
(F) the experience of the entity carrying out the
proposed project in working with renewable fuels;
(G) the ability of the entity carrying out the
proposed project to maintain the quality of the
renewable fuel through--
(i) the terminal system of the entity; and
(ii) the dedicated pipeline system;
(H) the ability of the entity carrying out the
proposed project to complete the project in a timely
manner; and
(I) the ability of the entity carrying out the
proposed project to secure property rights-of-way in
order to move the proposed project forward in a timely
manner.
(3) Amount.--Unless otherwise provided by law, a guarantee
by the Secretary under this section shall not exceed an amount
equal to 90 percent of the eligible project cost of the
renewable fuel pipeline that is the subject of the guarantee,
as estimated at the time at which the guarantee is issued or
subsequently modified while the eligible project is under
construction.
(4) Terms and conditions.--Guarantees under this section
shall be provided in accordance with section 1702 of the Energy
Policy Act of 2005 (42 U.S.C. 16512), except that subsections
(b) and (c) of that section shall not apply to guarantees under
this section.
(5) Existing funding authority.--The Secretary shall make a
guarantee under this section under an existing funding
authority.
(6) Final rule.--Not later than 90 days after the date of
enactment of this Act, the Secretary shall publish in the
Federal Register a final rule directing the Director of the
Department of Energy Loan Guarantee Program Office to initiate
the loan guarantee program under this section in accordance
with this section.
(c) Funding.--
(1) In general.--There are authorized to be appropriated
such sums as are necessary to provide $4,000,000,000 in
guarantees under this section.
(2) Use of other appropriated funds.--To the extent that
the amounts made available under title XVII of the Energy
Policy Act of 2005 (42 U.S.C. 16511 et seq.) have not been
disbursed to programs under that title, the Secretary may use
the amounts to carry out this section.
Subtitle B--Clean Coal-Derived Fuels for Energy Security
SEC. 211. DEFINITIONS.
In this subtitle:
(1) Clean coal-derived fuel.--
(A) In general.--The term ``clean coal-derived
fuel'' means aviation fuel, motor vehicle fuel, home
heating oil, or boiler fuel that is--
(i) substantially derived from the coal
resources of the United States; and
(ii) refined or otherwise processed at a
facility located in the United States that
captures--
(I) at least 50 percent of the
carbon dioxide emissions that would
otherwise be released at the facility;
or
(II) if the Secretary determines
that it is commercially feasible to
capture a higher percentage of carbon
dioxide emissions, a percentage equal
to or greater than the percentage of
carbon dioxide emissions determined by
the Secretary to be commercially
feasible of being captured.
(B) Inclusions.--The term ``clean coal-derived
fuel'' may include any other resource that is
extracted, grown, produced, or recovered in the United
States.
(2) Covered fuel.--The term ``covered fuel'' means--
(A) aviation fuel;
(B) motor vehicle fuel;
(C) home heating oil; and
(D) boiler fuel.
(3) Small refinery.--The term ``small refinery'' means a
refinery for which the average aggregate daily crude oil
throughput for a calendar year (as determined by dividing the
aggregate throughput for the calendar year by the number of
days in the calendar year) does not exceed 75,000 barrels.
SEC. 212. CLEAN COAL-DERIVED FUEL PROGRAM.
(a) Program.--
(1) In general.--Not later than 1 year after the date of
enactment of this Act, the President shall promulgate
regulations to ensure that covered fuel sold or introduced into
commerce in the United States (except in noncontiguous States
or territories), on an annual average basis, contains the
applicable volume of clean coal-derived fuel determined in
accordance with paragraph (4).
(2) Provisions of regulations.--Regardless of the date of
promulgation, the regulations promulgated under paragraph (1)--
(A) shall contain compliance provisions applicable
to refineries, blenders, distributors, and importers,
as appropriate, to ensure that--
(i) the requirements of this subsection are
met; and
(ii) clean coal-derived fuels produced from
facilities for the purpose of compliance with
this subtitle result in life cycle greenhouse
gas emissions that are not greater than
gasoline; and
(B) shall not--
(i) restrict geographic areas in the
contiguous United States in which clean coal-
derived fuel may be used; or
(ii) impose any per-gallon obligation for
the use of clean coal-derived fuel.
(3) Relationship to other regulations.--Regulations
promulgated under this paragraph shall, to the maximum extent
practicable, incorporate the program structure, compliance and
reporting requirements established under the final regulations
promulgated to implement the renewable fuel program established
by the amendment made by section 1501(a)(2) of the Energy
Policy Act of 2005 (Public Law 109-58; 119 Stat. 1067).
(4) Applicable volume.--
(A) Calendar years 2015 through 2022.--For the
purpose of this subsection, the applicable volume for
any of calendar years 2015 through 2022 shall be
determined in accordance with the following table:
----------------------------------------------------------------------------------------------------------------
Applicable volume of clean coal-derived fuel (in billions of
Calendar year: gallons)
----------------------------------------------------------------------------------------------------------------
2015......................................... .075
2016......................................... 1.5
2017......................................... 2.25
2018......................................... 3.00
2019......................................... 3.75
2020......................................... 4.5
2021......................................... 5.25
2022......................................... 6.0
----------------------------------------------------------------------------------------------------------------
(B) Calendar year 2023 and thereafter.--Subject to
subparagraph (C), for the purposes of this subsection,
the applicable volume for calendar year 2023 and each
calendar year thereafter shall be determined by the
President, in coordination with the Secretary and the
Administrator of the Environmental Protection Agency,
based on a review of the implementation of the program
during calendar years 2015 through 2022, including a
review of--
(i) the impact of clean coal-derived fuels
on the energy security of the United States;
(ii) the expected annual rate of future
production of clean coal-derived fuels; and
(iii) the impact of the use of clean coal-
derived fuels on other factors, including job
creation, rural economic development, and the
environment.
(C) Minimum applicable volume.--For the purpose of
this subsection, the applicable volume for calendar
year 2023 and each calendar year thereafter shall be
equal to the product obtained by multiplying--
(i) the number of gallons of covered fuel
that the President estimates will be sold or
introduced into commerce in the calendar year;
and
(ii) the ratio that--
(I) 6,000,000,000 gallons of clean
coal-derived fuel; bears to
(II) the number of gallons of
covered fuel sold or introduced into
commerce in calendar year 2022.
(b) Applicable Percentages.--
(1) Provision of estimate of volumes of certain fuel
sales.--Not later than October 31 of each of calendar years
2015 through 2021, the Administrator of the Energy Information
Administration shall provide to the President an estimate, with
respect to the following calendar year, of the volumes of
covered fuel projected to be sold or introduced into commerce
in the United States.
(2) Determination of applicable percentages.--
(A) In general.--Not later than November 30 of each
of calendar years 2015 through 2022, based on the
estimate provided under paragraph (1), the President
shall determine and publish in the Federal Register,
with respect to the following calendar year, the clean
coal-derived fuel obligation that ensures that the
requirements of subsection (a) are met.
(B) Required elements.--The clean coal-derived fuel
obligation determined for a calendar year under
subparagraph (A) shall--
(i) be applicable to refineries, blenders,
and importers, as appropriate;
(ii) be expressed in terms of a volume
percentage of covered fuel sold or introduced
into commerce in the United States; and
(iii) subject to paragraph (3)(A), consist
of a single applicable percentage that applies
to all categories of persons specified in
clause (i).
(3) Adjustments.--In determining the applicable percentage
for a calendar year, the President shall make adjustments--
(A) to prevent the imposition of redundant
obligations on any person specified in paragraph
(2)(B)(i); and
(B) to account for the use of clean coal-derived
fuel during the previous calendar year by small
refineries that are exempt under subsection (f).
(c) Volume Conversion Factors for Clean Coal-Derived Fuels Based on
Energy Content.--
(1) In general.--For the purpose of subsection (a), the
President shall assign values to specific types of clean coal-
derived fuel for the purpose of satisfying the fuel volume
requirements of subsection (a)(4) in accordance with this
subsection.
(2) Energy content relative to diesel fuel.--For clean
coal-derived fuels, 1 gallon of the clean coal-derived fuel
shall be considered to be the equivalent of 1 gallon of diesel
fuel multiplied by the ratio that--
(A) the number of British thermal units of energy
produced by the combustion of 1 gallon of the clean
coal-derived fuel (as measured under conditions
determined by the Secretary); bears to
(B) the number of British thermal units of energy
produced by the combustion of 1 gallon of diesel fuel
(as measured under conditions determined by the
Secretary to be comparable to conditions described in
subparagraph (A)).
(d) Credit Program.--
(1) In general.--The President, in consultation with the
Secretary and the Administrator of the Environmental Protection
Agency, shall implement a credit program to manage the clean
coal-derived fuel requirement of this section in a manner
consistent with the credit program established by the amendment
made by section 1501(a)(2) of the Energy Policy Act of 2005
(Public Law 109-58; 119 Stat. 1067).
(2) Market transparency.--In carrying out the credit
program under this subsection, the President shall facilitate
price transparency in markets for the sale and trade of
credits, with due regard for the public interest, the integrity
of those markets, fair competition, and the protection of
consumers.
(e) Waivers.--
(1) In general.--The President, in consultation with the
Secretary and the Administrator of the Environmental Protection
Agency, may waive the requirements of subsection (a) in whole
or in part on petition by 1 or more States by reducing the
national quantity of clean coal-derived fuel required under
subsection (a), based on a determination by the President
(after public notice and opportunity for comment), that--
(A) implementation of the requirement would
severely harm the economy or environment of a State, a
region, or the United States; or
(B) extreme and unusual circumstances exist that
prevent distribution of an adequate supply of
domestically-produced clean coal-derived fuel to
consumers in the United States.
(2) Petitions for waivers.--The President, in consultation
with the Secretary and the Administrator of the Environmental
Protection Agency, shall approve or disapprove a State petition
for a waiver of the requirements of subsection (a) within 90
days after the date on which the petition is received by the
President.
(3) Termination of waivers.--A waiver granted under
paragraph (1) shall terminate after 1 year, but may be renewed
by the President after consultation with the Secretary and the
Administrator of the Environmental Protection Agency.
(f) Small Refineries.--
(1) Temporary exemption.--
(A) In general.--The requirements of subsection (a)
shall not apply to small refineries until calendar year
2018.
(B) Extension of exemption.--
(i) Study by secretary.--Not later than
December 31, 2013, the Secretary shall submit
to the President and Congress a report
describing the results of a study to determine
whether compliance with the requirements of
subsection (a) would impose a disproportionate
economic hardship on small refineries.
(ii) Extension of exemption.--In the case
of a small refinery that the Secretary
determines under clause (i) would be subject to
a disproportionate economic hardship if
required to comply with subsection (a), the
President shall extend the exemption under
subparagraph (A) for the small refinery for a
period of not less than 2 additional years.
(2) Petitions based on disproportionate economic
hardship.--
(A) Extension of exemption.--A small refinery may
at any time petition the President for an extension of
the exemption under paragraph (1) for the reason of
disproportionate economic hardship.
(B) Evaluation of petitions.--In evaluating a
petition under subparagraph (A), the President, in
consultation with the Secretary, shall consider the
findings of the study under paragraph (1)(B) and other
economic factors.
(C) Deadline for action on petitions.--The
President shall act on any petition submitted by a
small refinery for a hardship exemption not later than
90 days after the date of receipt of the petition.
(3) Opt-in for small refineries.--A small refinery shall be
subject to the requirements of subsection (a) if the small
refinery notifies the President that the small refinery waives
the exemption under paragraph (1).
(g) Penalties and Enforcement.--
(1) Civil penalties.--
(A) In general.--Any person that violates a
regulation promulgated under subsection (a), or that
fails to furnish any information required under such a
regulation, shall be liable to the United States for a
civil penalty of not more than the total of--
(i) $25,000 for each day of the violation;
and
(ii) the amount of economic benefit or
savings received by the person resulting from
the violation, as determined by the President.
(B) Collection.--Civil penalties under subparagraph
(A) shall be assessed by, and collected in a civil
action brought by, the Secretary or such other officer
of the United States as is designated by the President.
(2) Injunctive authority.--
(A) In general.--The district courts of the United
States shall have jurisdiction to--
(i) restrain a violation of a regulation
promulgated under subsection (a);
(ii) award other appropriate relief; and
(iii) compel the furnishing of information
required under the regulation.
(B) Actions.--An action to restrain such violations
and compel such actions shall be brought by and in the
name of the United States.
(C) Subpoenas.--In the action, a subpoena for a
witness who is required to attend a district court in
any district may apply in any other district.
(h) Effective Date.--Except as otherwise specifically provided in
this section, this section takes effect on January 1, 2016.
Subtitle C--Nuclear Energy
SEC. 221. INCENTIVES FOR INNOVATIVE TECHNOLOGIES.
(a) Definition of Project Cost.--Section 1701 of the Energy Policy
Act of 2005 (42 U.S.C. 16511) is amended by adding at the end the
following:
``(6) Project cost.--
``(A) In general.--The term `project cost' means
any cost associated with the development, planning,
design, engineering, permitting and licensing,
construction, commissioning, start-up, shakedown, and
financing of a facility.
``(B) Inclusions.--The term `project cost'
includes--
``(i) reasonable escalation and
contingencies;
``(ii) the cost of and fees for a
guarantee;
``(iii) reasonably required reserve funds;
``(iv) initial working capital; and
``(v) interest accrued during
construction.''.
(b) Terms and Conditions; Amount.--Section 1702 of the Energy
Policy Act of 2005 (42 U.S.C. 16512) is amended by striking subsections
(b) and (c) and inserting the following:
``(b) Specific Appropriation or Contribution.--
``(1) In general.--No guarantee shall be made unless--
``(A) the Secretary has received from the borrower
and deposited in the Treasury a payment in full for the
cost of the obligation;
``(B) an appropriation for the cost has been made
in lieu of a payment being made; or
``(C) a combination of actions described in
subparagraphs (A) and (B) has been carried out such
that, when combined, the actions are sufficient to
cover the cost of the obligation.
``(2) Relation to other laws.--Section 504(b) of the
Federal Credit Reform Act of 1990 (2 U.S.C. 661c(b)) shall not
apply to a loan guarantee made in accordance with paragraph
(1)(B).
``(c) Amount.---
``(1) In general.--Subject to paragraph (2), the Secretary
shall guarantee 100 percent of the obligation for a facility
that is the subject of the guarantee, or a lesser amount if
requested by the borrower.
``(2) Limitation.--The total amount of loans guaranteed for
a facility by the Secretary shall not exceed 80 percent of the
total cost of the facility, as estimated at the time at which
the guarantee is issued.''.
(c) Fees.--Section 1702(h) of the Energy Policy Act of 2005 (42
U.S.C. 16512(h)) is amended by striking paragraph (2) and inserting the
following:
``(2) Availability.--Fees collected under this subsection
shall--
``(A) be deposited by the Secretary into a special
fund in the Treasury, to be known as the `Incentives
For Innovative Technologies Fund'; and
``(B) remain available to the Secretary for
expenditure, without further appropriation or fiscal
year limitation, for administrative expenses incurred
in carrying out this title.''.
(d) Report to Congress.--Section 1702 of the Energy Policy Act of
2005 (42 U.S.C. 16512) is amended by adding at the end the following:
``(k) Report to Congress.--
``(1) In general.--Not later than 1 year after the date of
enactment of this subsection and annually thereafter, the
Secretary shall submit to Congress a report that summarizes the
applications for loan guarantees received, loan guarantees
approved and rejected, and justifications for rejections of
loan guarantees, under this title.
``(2) Termination of authority.--Beginning with fiscal year
2018, the Secretary shall provide, in the annual report
submitted for each fiscal year under paragraph (1), a
recommendation on whether all or part of the loan guarantee
program under this title should be terminated.''.
SEC. 222. AUTHORIZATION FOR NUCLEAR POWER 2010 PROGRAM.
Section 952 of the Energy Policy Act of 2005 (42 U.S.C. 16272) is
amended by striking subsection (c) and inserting the following:
``(c) Nuclear Power 2010 Program.--
``(1) In general.--The Secretary shall carry out a Nuclear
Power 2010 Program to position the United States to commence
construction of new nuclear power plants by not later than--
``(A) calendar year 2010; or
``(B) such first calendar year after calendar year
2010 as is practicable.
``(2) Scope of program.--The Nuclear Power 2010 Program
shall support the objectives of--
``(A) demonstrating the licensing process for new
nuclear power plants, including the Nuclear Regulatory
Commission process for obtaining--
``(i) early site permits;
``(ii) combined construction or operating
licenses; and
``(iii) design certifications; and
``(B) conducting first-of-a-kind design and
engineering work on at least 2 advanced nuclear reactor
designs sufficient to bring those designs to a state of
design completion sufficient to allow development of
firm cost estimates.
``(3) Cost-sharing.--The Nuclear Power 2010 Program shall
be carried out through the use of cost-sharing with the private
sector.
``(4) Authorization of appropriations.--There are
authorized to be appropriated to the Secretary to carry out the
Nuclear Power 2010 Program--
``(A) $182,800,000 for fiscal year 2009;
``(B) $159,600,000 for fiscal year 2010;
``(C) $135,600,000 for fiscal year 2011;
``(D) $46,900,000 for fiscal year 2012; and
``(E) $2,200,000 for fiscal year 2013.''.
SEC. 223. DOMESTIC MANUFACTURING BASE FOR NUCLEAR COMPONENTS AND
EQUIPMENT.
(a) Establishment of Interagency Working Group.--
(1) Purposes.--The purposes of this section are--
(A) to increase the competitiveness of the United
States nuclear energy products and services industries;
(B) to identify the stimulus or incentives
necessary to cause United States manufacturers of
nuclear energy products to expand manufacturing
capacity;
(C) to facilitate the export of United States
nuclear energy products and services;
(D) to reduce the trade deficit of the United
States through the export of United States nuclear
energy products and services;
(E) to retain and create nuclear energy
manufacturing and related service jobs in the United
States;
(F) to integrate the objectives described in
subparagraphs (A) through (E), in a manner consistent
with the interests of the United States, into the
foreign policy of the United States; and
(G) to authorize funds for increasing United States
capacity to manufacture nuclear energy products and
supply nuclear energy services.
(2) Establishment.--
(A) In general.--There is established an
interagency working group (referred to in this section
as the ``Working Group'') that, in consultation with
representative industry organizations and manufacturers
of nuclear energy products, shall make recommendations
to coordinate the actions and programs of the Federal
Government in order to promote increasing domestic
manufacturing capacity and export of domestic nuclear
energy products and services.
(B) Composition.--The Working Group shall be
composed of--
(i) the Secretary (or a designee), who
shall serve as Chairperson of the Working
Group; and
(ii) representatives, appointed by the head
of each applicable agency or department, of--
(I) the Department of Energy;
(II) the Department of Commerce;
(III) the Department of Defense;
(IV) the Department of Treasury;
(V) the Department of State;
(VI) the Environmental Protection
Agency;
(VII) the United States Agency for
International Development;
(VIII) the Export-Import Bank of
the United States;
(IX) the Trade and Development
Agency;
(X) the Small Business
Administration;
(XI) the Office of the United
States Trade Representative; and
(XII) other Federal agencies, as
determined by the President.
(3) Duties of working group.--The Working Group shall--
(A) not later than 180 days after the date of
enactment of this Act, identify the actions necessary
to promote the safe development and application in
foreign countries of nuclear energy products and
services--
(i) to increase electricity generation from
nuclear energy sources through development of
new generation facilities;
(ii) to improve the efficiency, safety, and
reliability of existing nuclear generating
facilities through modifications; and
(iii) enhance the safe treatment, handling,
storage, and disposal of used nuclear fuel;
(B) not later than 180 days after the date of
enactment of this Act, identify--
(i) mechanisms (including tax stimuli for
investment, loans and loan guarantees, and
grants) necessary for United States companies
to increase--
(I) the capacity of the companies
to produce or provide nuclear energy
products and services; and
(II) exports of nuclear energy
products and services; and
(ii) administrative or legislative
initiatives that are necessary--
(I) to encourage United States
companies to increase the manufacturing
capacity of the companies for nuclear
energy products;
(II) to provide technical and
financial assistance and support to
small and mid-sized businesses to
establish quality assurance programs in
accordance with domestic and
international nuclear quality assurance
code requirements;
(III) to encourage, through
financial incentives, private sector
capital investment to expand
manufacturing capacity; and
(IV) to provide technical
assistance and financial incentives to
small and mid-sized businesses to
develop the workforce necessary to
increase manufacturing capacity and
meet domestic and international nuclear
quality assurance code requirements;
(C) not later than 270 days after the date of
enactment of this Act, submit to Congress a report that
describes the findings of the Working Group under
subparagraphs (A) and (B), including recommendations
for new legislative authority, as necessary; and
(D) encourage the agencies represented by
membership in the Working Group--
(i) to provide technical training and
education for international development
personnel and local users in other countries;
(ii) to provide financial and technical
assistance to nonprofit institutions that
support the marketing and export efforts of
domestic companies that provide nuclear energy
products and services;
(iii) to develop nuclear energy projects in
foreign countries;
(iv) to provide technical assistance and
training materials to loan officers of the
World Bank, international lending institutions,
commercial and energy attaches at embassies of
the United States, and other appropriate
personnel in order to provide information about
nuclear energy products and services to foreign
governments or other potential project
sponsors;
(v) to support, through financial
incentives, private sector efforts to
commercialize and export nuclear energy
products and services in accordance with the
subsidy codes of the World Trade Organization;
and
(vi) to augment budgets for trade and
development programs in order to support
prefeasibility or feasibility studies for
projects that use nuclear energy products and
services.
(4) Personnel and service matters.--The Secretary and the
heads of agencies represented by membership in the Working
Group shall detail such personnel and furnish such services to
the Working Group, with or without reimbursement, as are
necessary to carry out the functions of the Working Group.
(5) Authorization of appropriations.--There is authorized
to be appropriated to the Secretary to carry out this
subsection $20,000,000 for each of fiscal years 2009 and 2010.
(b) Credit for Qualifying Nuclear Power Manufacturing.--
(1) Credit for qualifying nuclear power manufacturing.--
Subpart E of part IV of subchapter A of chapter 1 of the
Internal Revenue Code is amended by inserting after section 48B
the following new section:
``SEC. 48C. QUALIFYING NUCLEAR POWER MANUFACTURING CREDIT.
``(a) In General.--For purposes of section 46, the qualifying
nuclear power manufacturing credit for any taxable year is an amount
equal to 20 percent of the qualified investment for such taxable year.
``(b) Qualified Investment.--
``(1) In general.--For purposes of subsection (a), the
qualified investment for any taxable year is the basis of
eligible property placed in service by the taxpayer during such
taxable year--
``(A) which is either part of a qualifying nuclear
power manufacturing project or is qualifying nuclear
power manufacturing equipment;
``(B)(i) the construction, reconstruction, or
erection of which is completed by the taxpayer; or
``(ii) which is acquired by the taxpayer if the
original use of such property commences with the
taxpayer;
``(C) with respect to which depreciation (or
amortization in lieu of depreciation) is allowable; and
``(D) which is placed in service on or before
December 31, 2015.
``(2) Special rule for certain subsidized property.--Rules
similar to section 48(a)(4) shall apply for purposes of this
section.
``(3) Certain qualified progress expenditures rules made
applicable.--Rules similar to the rules of subsections (c)(4)
and (d) of section 46 (as in effect on the day before the
enactment of the Revenue Reconciliation Act of 1990) shall
apply for purposes of this section.
``(c) Definitions.--For purposes of this section:
``(1) Qualifying nuclear power manufacturing project.--The
term `qualifying nuclear power manufacturing project' means any
project which is designed primarily to enable the taxpayer to
produce or test equipment necessary for the construction or
operation of a nuclear power plant.
``(2) Qualifying nuclear power manufacturing equipment.--
The term `qualifying nuclear power manufacturing equipment'
means machine tools and other similar equipment, including
computers and other peripheral equipment, acquired or
constructed primarily to enable the taxpayer to produce or test
equipment necessary for the construction or operation of a
nuclear power plant.
``(3) Project.--The term `project' includes any building
constructed to house qualifying nuclear power manufacturing
equipment.''.
(2) Conforming amendments.--
(A) Additional investment credit.--Section 46 of
such Code is amended by--
(i) striking ``and'' at the end of
paragraph (3);
(ii) striking the period at the end of
paragraph (4) and inserting ``, and''; and
(iii) inserting after paragraph (4) the
following new paragraph:
``(5) the qualifying nuclear power manufacturing credit.''.
(B) Application of section 49.--Subparagraph (C) of
section 49(a)(1) of such Code is amended by--
(i) striking ``and'' at the end of clause
(iii);
(ii) striking the period at the end of
clause (iv) and inserting ``, and''; and
(iii) inserting after clause (iv) the
following new clause:
``(v) the basis of any property which is
part of a qualifying nuclear power equipment
manufacturing project under section 48C.''.
(C) Table of sections.--The table of sections for
such subpart E is amended by inserting after the item
relating to section 48B the following new item:
``Sec. 48C. Qualifying nuclear power manufacturing credit.''.
(c) Effective Date.--The amendments made by this section shall
apply to property--
(1) the construction, reconstruction, or erection of which
of began after the date of enactment of this Act, or
(2) which was acquired by the taxpayer on or after the date
of enactment of this Act and not pursuant to a binding contract
which was in effect on the day prior to the date of enactment.
SEC. 224. NUCLEAR ENERGY WORKFORCE.
Section 1101 of the Energy Policy Act of 2005 (42 U.S.C. 16411) is
amended--
(1) by redesignating subsection (d) as subsection (e); and
(2) by inserting after subsection (c) the following:
``(d) Workforce Training.--
``(1) In general.--The Secretary of Labor, in cooperation
with the Secretary of Energy, shall promulgate regulations to
implement a program to provide workforce training to meet the
high demand for workers skilled in the nuclear utility and
nuclear energy products and services industries.
``(2) Consultation.--In carrying out this subsection, the
Secretary of Labor shall consult with representatives of the
nuclear utility and nuclear energy products and services
industries, and organized labor, concerning skills that are
needed in those industries.
``(3) Authorization of appropriations.--There are
authorized to be appropriated to the Secretary of Labor, in
coordination with the Secretary of Education and the Secretary
of Energy, to carry out this subsection $20,000,000 for each of
fiscal years 2009 through 2012.''.
SEC. 225. INVESTMENT TAX CREDIT FOR INVESTMENTS IN NUCLEAR POWER
FACILITIES.
(a) New Credit for Nuclear Power Facilities.--Section 46 of the
Internal Revenue Code of 1986, as amended by this title, is amended
by--
(1) striking ``and'' at the end of paragraph (4);
(2) striking the period at the end of paragraph (5) and
inserting ``, and''; and
(3) inserting after paragraph (5) the following new
paragraph:
``(5) the nuclear power facility construction credit.''.
(b) Nuclear Power Facility Construction Credit.--Subpart E of part
IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986,
as amended by this title, is amended by inserting after section 48C the
following new section:
``SEC. 48D. NUCLEAR POWER FACILITY CONSTRUCTION CREDIT.
``(a) In General.--For purposes of section 46, the nuclear power
facility construction credit for any taxable year is 10 percent of the
qualified nuclear power facility expenditures with respect to a
qualified nuclear power facility.
``(b) When Expenditures Taken Into Account.--
``(1) In general.--Qualified nuclear power facility
expenditures shall be taken into account for the taxable year
in which the qualified nuclear power facility is placed in
service.
``(2) Coordination with subsection (c).--The amount which
would (but for this paragraph) be taken into account under
paragraph (1) with respect to any qualified nuclear power
facility shall be reduced (but not below zero) by any amount of
qualified nuclear power facility expenditures taken into
account under subsection (c) by the taxpayer or a predecessor
of the taxpayer (or, in the case of a sale and leaseback
described in section 50(a)(2)(C), by the lessee), to the extent
any amount so taken into account has not been required to be
recaptured under section 50(a).
``(c) Progress Expenditures.--
``(1) In general.--A taxpayer may elect to take into
account qualified nuclear power facility expenditures-
``(A) Self-constructed property.--In the case of a
qualified nuclear power facility which is a self-
constructed facility, in the taxable year for which
such expenditures are properly chargeable to capital
account with respect to such facility; and
``(B) Acquired facility.--In the case of a
qualified nuclear facility which is not self-
constructed property, in the taxable year in which such
expenditures are paid.
``(2) Special rules for applying paragraph (1).--For
purposes of paragraph (1)-
``(A) Component parts, etc.--Property which is not
self-constructed property and which is to be a
component part of, or is otherwise to be included in,
any facility to which this subsection applies shall be
taken into account in accordance with paragraph (1)(B);
``(B) Certain borrowing disregarded.--Any amount
borrowed directly or indirectly by the taxpayer on a
nonrecourse basis from the person constructing the
facility for the taxpayer shall not be treated as an
amount expended for such facility; and
``(C) Limitation for facilities or components which
are not self-constructed.--
``(i) In general.--In the case of a
facility or a component of a facility which is
not self-constructed, the amount taken into
account under paragraph (1)(B) for any taxable
year shall not exceed the amount which
represents the portion of the overall cost to
the taxpayer of the facility or component of a
facility which is properly attributable to the
portion of the facility or component which is
completed during such taxable year.
``(ii) Carry-over of certain amounts.--In
the case of a facility or component of a
facility which is not self-constructed, if for
the taxable year--
``(I) the amount which (but for
clause (i)) would have been taken into
account under paragraph (1)(B) exceeds
the limitation of clause (i), then the
amount of such excess shall be taken
into account under paragraph (1)(B) for
the succeeding taxable year; or
``(II) the limitation of clause (i)
exceeds the amount taken into account
under paragraph (1)(B), then the amount
of such excess shall increase the
limitation of clause (i) for the
succeeding taxable year.
``(D) Determination of percentage of completion.--
The determination under subparagraph (C)(i) of the
portion of the overall cost to the taxpayer of the
construction which is properly attributable to
construction completed during any taxable year shall be
made on the basis of engineering or architectural
estimates or on the basis of cost accounting records.
Unless the taxpayer establishes otherwise by clear and
convincing evidence, the construction shall be deemed
to be completed not more rapidly than ratably over the
normal construction period.
``(E) No progress expenditures for certain prior
periods.--No qualified nuclear facility expenditures
shall be taken into account under this subsection for
any period before the first day of the first taxable
year to which an election under this subsection
applies.
``(F) No progress expenditures for property for
year it is placed in service, etc.--In the case of any
qualified nuclear facility, no qualified nuclear
facility expenditures shall be taken into account under
this subsection for the earlier of--
``(i) the taxable year in which the
facility is placed in service; or
``(ii) the first taxable year for which
recapture is required under section 50(a)(2)
with respect to such facility, or for any
taxable year thereafter.
``(3) Self-constructed.--For purposes of this subsection-
``(A) The term `self-constructed facility' means
any facility if it is reasonable to believe that more
than half of the qualified nuclear facility
expenditures for such facility will be made directly by
the taxpayer.
``(B) A component of a facility shall be treated as
not self-constructed if the cost of the component is at
least 5 percent of the expected cost of the facility
and the component is acquired by the taxpayer.
``(4) Election.--An election shall be made under this
section for a qualified nuclear power facility by claiming the
nuclear power facility construction credit for expenditures
described in paragraph (1) on a tax return filed by the due
date for such return (taking into account extensions). Such an
election shall apply to the taxable year for which made and all
subsequent taxable years. Such an election, once made, may be
revoked only with the consent of the Secretary.
``(d) Definitions and Special Rules.--For purposes of this section-
``(1) Qualified nuclear power facility.--The term
`qualified nuclear power facility' means an advanced nuclear
power facility, as defined in section 45J, the construction of
which was approved by the Nuclear Regulatory Commission on or
before December 31, 2013.
``(2) Qualified nuclear power facility expenditures.--
``(A) In general.--The term `qualified nuclear
power facility expenditures' means any amount properly
chargeable to capital account--
``(i) with respect to a qualified nuclear
power facility;
``(ii) for which depreciation is allowable
under section 168; and
``(iii) which are incurred before the
qualified nuclear power facility is placed in
service or in connection with the placement of
such facility in service.
``(B) Pre-effective date expenditures.--Qualified
nuclear power facility expenditures do not include any
expenditures incurred by the taxpayer before January 1,
2007, unless such expenditures constitute less than 20
percent of the total qualified nuclear power facility
expenditures (determined without regard to this
subparagraph) for the qualified nuclear power facility.
``(3) Delays and suspension of construction.--
``(A) In general.--For purposes of applying this
section and section 50, a nuclear power facility that
is under construction shall cease to be treated as a
facility that will be a qualified nuclear power
facility as of the earlier of--
``(i) the date on which the taxpayer
decides to terminate construction of the
facility; or
``(ii) the last day of any 24 month period
in which the taxpayer has failed to incur
qualified nuclear power facility expenditures
totaling at least 20 percent of the expected
total cost of the nuclear power facility.
``(B) Authority to waive.--The Secretary may waive
the application of clause (ii) of subparagraph (A) if
the Secretary determines that the taxpayer intended to
continue the construction of the qualified nuclear
power facility and the expenditures were not incurred
for reasons outside the control of the taxpayer.
``(C) Resumption of construction.--If a nuclear
power facility that is under construction ceases to be
a qualified nuclear power facility by reason of
paragraph (2) and work is subsequently resumed on the
construction of such facility--
``(i) the date work is subsequently resumed
shall be treated as the date that construction
began for purposes of paragraph (1); and
``(ii) if the facility is a qualified
nuclear power facility, the qualified nuclear
power facility expenditures shall be determined
without regard to any delay or temporary
termination of construction of the facility.''.
(c) Provisions Relating to Credit Recapture.--
(1) Progress expenditure recapture rules.--
(A) Basic rules.--Subparagraph (A) of section
50(a)(2) of the Internal Revenue Code of 1986 is
amended to read as follows:
``(A) In general.--If during any taxable year any
building to which section 47(d) applied or any facility
to which section 48D(c) applied ceases (by reason of
sale or other disposition, cancellation or abandonment
of contract, or otherwise) to be, with respect to the
taxpayer, property which, when placed in service, will
be a qualified rehabilitated building or a qualified
nuclear power facility, then the tax under this chapter
for such taxable year shall be increased by an amount
equal to the aggregate decrease in the credits allowed
under section 38 for all prior taxable years which
would have resulted solely from reducing to zero the
credit determined under this subpart with respect to
such building or facility.''.
(B) Amendment to excess credit recapture rule.--
Subparagraph (B) of section 50(a)(2) of such Code is
amended by--
(i) inserting ``or paragraph (2) of section
48D(b)'' after ``paragraph (2) of section
47(b)'';
(ii) inserting ``or section 48D(b)(1)''
after ``section 47(b)(1)''; and
(iii) inserting ``or facility'' after
``building''.
(C) Amendment of sale and leaseback rule.--
Subparagraph (C) of section 50(a)(2) of such Code is
amended by--
(i) inserting ``or section 48D(c)'' after
``section 47(d)''; and
(ii) inserting ``or qualified nuclear power
facility expenditures'' after ``qualified
rehabilitation expenditures''.
(D) Other amendment.--Subparagraph (D) of section
50(a)(2) of such Code is amended by inserting ``or
section 48D(c)'' after ``section 47(d)''.
(d) No Basis Adjustment.--Section 50(c) of the Internal Revenue
Code of 1986 is amended by inserting at the end thereof the following
new paragraph:
``(6) Nuclear power facility construction credit.--
Paragraphs (1) and (2) shall not apply to the nuclear power
facility construction credit.''.
(e) Technical Amendments.--The table of sections for subpart E of
part IV of subchapter A of chapter 1 of the Internal Revenue Code of
1986, as amended by this subtitle, is amended by inserting after the
item relating to section 48C the following new item:
``Sec. 48D. Nuclear power facility construction credit.''.
(f) Effective Date.--The amendments made by this section shall be
effective for expenditures incurred and property placed in service in
taxable years beginning after the date of enactment of this Act.
<all>