[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.
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