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S. 3126 (110th): Energy Resource Development Act of 2008


The text of the bill below is as of Jun 12, 2008 (Introduced). The bill was not enacted into law.


II

110th CONGRESS

2d Session

S. 3126

IN THE SENATE OF THE UNITED STATES

June 12, 2008

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.

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.

2.

Definition of Secretary

In this Act, the term Secretary means the Secretary of Energy.

I

Traditional resources

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 Doc. 1111, dated June 12, 1998, is revoked and no longer in effect regarding any area on the outer Continental Shelf covered by sections 104 and 105 of the Department of the Interior, Environment, and Related Agencies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).

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.

.

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:

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.

.

II

Alternative resources

A

Renewable fuel and advanced energy technology

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.

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.

B

Clean coal-derived fuels for energy security

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.

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:

Calendar year:Applicable volume of clean coal-derived fuel
(in billions of gallons)
2015.075
20161.5
20172.25
20183.00
20193.75
20204.5
20215.25
20226.0
(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.

C

Nuclear Energy

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.

.

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.

.

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:

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.

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.

.

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:

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.