[Congressional Record Volume 154, Number 97 (Thursday, June 12, 2008)]
[Senate]
[Pages S5619-S5626]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. COLEMAN:
  S. 3126. A bill to provide for the development of certain tradional 
and alternative energy resources; and for other purposes; to the 
Committee on Finance.
  Mr. COLEMAN. Mr. President, I ask unanimous consent that the text of 
the bill be printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:
       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

[[Page S5620]]

     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

[[Page S5621]]

     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

[[Page S5622]]

     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-
                    Calendar year:                     derived fuel  (in
                                                          billions of
                                                            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

[[Page S5623]]

     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

[[Page S5624]]

     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

[[Page S5625]]

       (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

[[Page S5626]]

       ``(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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