II 

110TH CONGRESS 

2D SESSION S. 3126 

To provide for the development of certain traditional and alternative energy 

resources, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

JUNE 12, 2008 

Mr. COLEMAN introduced the following bill; which was read twice and referred 

to the Committee on Finance 

A BILL 

To provide for the development of certain traditional and 

alternative energy resources, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘Energy Resource Development Act of 2008’’. 

6 (b) TABLE OF CONTENTS.—The table of contents of 

7 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. 


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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. 

1 SEC. 2. DEFINITION OF SECRETARY. 

2 In this Act, the term ‘‘Secretary’’ means the Sec3 retary of Energy. 

4 TITLE I—TRADITIONAL 

5 RESOURCES 

6 SEC. 101. REVOCATION OF WITHDRAWAL OF CERTAIN 

7 AREAS OF THE OUTER CONTINENTAL SHELF. 

8 The ‘‘Memorandum on Withdrawal of Certain Areas 

9 of the United States Outer Continental Shelf from Leas10 ing Disposition’’, 34 Weekly Comp. Pres. Doc. 1111, 

11 dated June 12, 1998, is revoked and no longer in effect 

12 regarding any area on the outer Continental Shelf covered 

13 by sections 104 and 105 of the Department of the Inte14 rior, Environment, and Related Agencies Appropriations 

15 Act, 2008 (Public Law 110–161; 121 Stat. 2118). 


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1 SEC. 102. STATE AUTHORITY TO PROTECT CERTAIN COAST2 AL AREAS. 

3 Section 19 of the Outer Continental Shelf Lands Act 

4 (43 U.S.C. 1345) is amended by adding at the end the 

5 following: 

6 ‘‘(f) APPROVAL BY CERTAIN AFFECTED STATES.— 

7 ‘‘(1) DEFINITION OF AFFECTED STATE.—In 

8 this subsection, the term ‘affected State’ means a 

9 State that the Secretary, in consultation with the 

10 Administrator of the Environmental Protection 

11 Agency, determines could be affected negatively by 

12 the potential environmental or economic impacts of 

13 a proposed lease sale or proposed development and 

14 production plan under this Act. 

15 ‘‘(2) NOTICE TO AFFECTED STATES.—Not later 

16 than 30 days before the date of a proposed lease sale 

17 or the publication of a proposed development and 

18 production plan, the Secretary shall submit to the 

19 Governor of each affected State notice of the pro20 posed sale or plan. 

21 ‘‘(3) AUTHORITIES OF AFFECTED STATES.— 

22 Not later than 60 days after the date on which the 

23 Secretary provides to the Governor of an affected 

24 State notice under paragraph (2), the Governor of 

25 the affected State shall submit to the Secretary a 

26 written response to the proposed sale or plan that— 


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1 ‘‘(A) specifies whether the Governor— 

2 ‘‘(i) accepts the sale or plan as pro3 posed; 

4 ‘‘(ii) accepts the sale or plan with 

5 modification; or 

6 ‘‘(iii) vetoes the proposed sale or plan; 

7 and 

8 ‘‘(B) in the case of subparagraph (A)(ii), 

9 includes a counterproposal that describes— 

10 ‘‘(i) any proposed modifications to— 

11 ‘‘(I) the proposed plan; or 

12 ‘‘(II) the size, time, or location of 

13 the proposed sale; and 

14 ‘‘(ii) any areas off the coast of the 

15 State that the Governor recommends for 

16 long-term protection in the form of a mor17 atorium on leasing for a period of not 

18 more than 20 years based on— 

19 ‘‘(I) any information in existence 

20 on the date of the counterproposal 

21 concerning the geographical, geologi22 cal, and ecological characteristics of 

23 the areas proposed for protection; 


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1 ‘‘(II) an equitable sharing of de2 velopmental benefits and environ3 mental risks among the areas; 

4 ‘‘(III) the location of the areas 

5 with respect to— 

6 ‘‘(aa) other uses of the sea 

7 and seabed in the areas, includ8 ing fisheries, navigation, existing 

9 or proposed sealanes, potential 

10 sites of deepwater ports; and 

11 ‘‘(bb) other anticipated uses 

12 of the resources and space of 

13 other areas of the outer Conti14 nental Shelf; 

15 ‘‘(IV) any relevant laws, goals, 

16 and policies of the State; and 

17 ‘‘(V) the relative environmental 

18 sensitivity and marine productivity of 

19 other areas of the outer Continental 

20 Shelf. 

21 ‘‘(4) SECRETARIAL RESPONSE.— 

22 ‘‘(A) IN GENERAL.—As soon as practicable 

23 after the Secretary receives a counterproposal 

24 under paragraph (3)(B), the Secretary, in con25 sultation with the Secretary of Defense, shall— 


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1 ‘‘(i) approve the counterproposal with2 out modification; 

3 ‘‘(ii) attempt to enter into an agree4 ment with the Governor to modify the 

5 counterproposal; or 

6 ‘‘(iii) deny the counterproposal. 

7 ‘‘(B) APPROVAL OF AGREEMENT.—To be 

8 valid, an agreement entered into under subpara9 graph (A)(ii) requires the approval of the Gov10 ernor, the Secretary, and the Secretary of the 

11 Defense.’’. 

12 SEC. 103. PRODUCTION OF OIL AND NATURAL GAS IN NEW 

13 PRODUCING AREAS. 

14 The Outer Continental Shelf Lands Act (43 U.S.C. 

15 1331 et seq.) is amended by adding at the end the fol16 lowing: 

17 ‘‘SEC. 32. PRODUCTION OF OIL AND NATURAL GAS IN NEW 

18 PRODUCING AREAS. 

19 ‘‘(a) DEFINITIONS.—In this section: 

20 ‘‘(1) COASTAL POLITICAL SUBDIVISION.—The 

21 term ‘coastal political subdivision’ means a political 

22 subdivision of a new producing State any part of 

23 which political subdivision is— 

24 ‘‘(A) within the coastal zone (as defined in 

25 section 304 of the Coastal Zone Management 


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1 Act of 1972 (16 U.S.C. 1453)) of the new pro2 ducing State as of the date of enactment of this 

3 section; and 

4 ‘‘(B) not more than 200 nautical miles 

5 from the geographic center of any leased tract. 

6 ‘‘(2) MORATORIUM AREA.— 

7 ‘‘(A) IN GENERAL.—The term ‘moratorium 

8 area’ means an area covered by sections 104 

9 through 105 of the Department of the Interior, 

10 Environment, and Related Agencies Appropria11 tions Act, 2008 (Public Law 110–161; 121 

12 Stat. 2118). 

13 ‘‘(B) EXCLUSION.—The term ‘moratorium 

14 area’ does not include an area located in the 

15 Gulf of Mexico. 

16 ‘‘(3) NEW PRODUCING AREA.—The term ‘new 

17 producing area’ means any moratorium area beyond 

18 the submerged land of a new producing State. 

19 ‘‘(4) NEW PRODUCING STATE.—The term ‘new 

20 producing State’ means a State that has received 

21 notice of a proposed lease sale for a new producing 

22 area under section 19(f)(2). 

23 ‘‘(5) QUALIFIED OUTER CONTINENTAL SHELF

24 REVENUES.— 


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1 ‘‘(A) IN GENERAL.—The term ‘qualified 

2 outer Continental Shelf revenues’ means all 

3 rentals, royalties, bonus bids, and other sums 

4 due and payable to the United States from 

5 leases entered into on or after the date of en6 actment of this section for new producing areas. 

7 ‘‘(B) EXCLUSIONS.—The term ‘qualified 

8 outer Continental Shelf revenues’ does not in9 clude— 

10 ‘‘(i) revenues from a bond or other 

11 surety forfeited for obligations other than 

12 the collection of royalties; 

13 ‘‘(ii) revenues from civil penalties; 

14 ‘‘(iii) royalties taken by the Secretary 

15 in-kind and not sold; 

16 ‘‘(iv) revenues generated from leases 

17 subject to section 8(g); or 

18 ‘‘(v) any revenues considered qualified 

19 outer Continental Shelf revenues under 

20 section 102 of the Gulf of Mexico Energy 

21 Security Act of 2006 (43 U.S.C. 1331 

22 note; Public Law 109–432). 

23 ‘‘(b) AVAILABILITY FOR LEASING.—On approval by 

24 the new producing State of a proposed lease sale for a 

25 new producing area under section 19(f), the Secretary 


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1 shall conduct the proposed lease sale for the new pro2 ducing area. 

3 ‘‘(c) DISPOSITION OF QUALIFIED OUTER CONTI4 NENTAL SHELF REVENUES FROM NEW PRODUCING

5 AREAS.— 

6 ‘‘(1) IN GENERAL.—Notwithstanding section 9 

7 and subject to the other provisions of this sub8 section, for each applicable fiscal year, the Secretary 

9 of the Treasury shall deposit— 

10 ‘‘(A) 50 percent of qualified outer Conti11 nental Shelf revenues— 

12 ‘‘(i) in the fund established by section 

13 201 of the Energy Resource Development 

14 Act of 2008; or 

15 ‘‘(ii) if the Secretary of the Treasury 

16 determines that the fund described in 

17 clause (i) is fully funded, in the general 

18 fund of the Treasury; and 

19 ‘‘(B) 50 percent of qualified outer Conti20 nental Shelf revenues in a special account in 

21 the Treasury from which the Secretary shall 

22 disburse— 

23 ‘‘(i) 75 percent to new producing 

24 States in accordance with paragraph (2); 

25 and 


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1 ‘‘(ii) 25 percent to provide financial 

2 assistance to States in accordance with 

3 section 6 of the Land and Water Conserva4 tion Fund Act of 1965 (16 U.S.C. 460l–8), 

5 which shall be considered income to the 

6 Land and Water Conservation Fund for 

7 purposes of section 2 of that Act (16 

8 U.S.C. 460l–5). 

9 ‘‘(2) ALLOCATION TO NEW PRODUCING STATES

10 AND COASTAL POLITICAL SUBDIVISIONS.— 

11 ‘‘(A) ALLOCATION TO NEW PRODUCING

12 STATES.—Effective for fiscal year 2008 and 

13 each fiscal year thereafter, the amount made 

14 available under paragraph (1)(B)(i) shall be al15 located to each new producing State in amounts 

16 (based on a formula established by the Sec17 retary by regulation) proportional to the 

18 amount of qualified outer Continental Shelf rev19 enues generated in the new producing area off20 shore each State. 

21 ‘‘(B) PAYMENTS TO COASTAL POLITICAL

22 SUBDIVISIONS.— 

23 ‘‘(i) IN GENERAL.—The Secretary 

24 shall pay 20 percent of the allocable share 

25 of each new producing State, as deterVerDate Aug 31 2005 01:17 Jun 14, 2008 Jkt 069200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\S3126.IS S3126

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1 mined under subparagraph (A), to the 

2 coastal political subdivisions of the new 

3 producing State. 

4 ‘‘(ii) ALLOCATION.—The amount paid 

5 by the Secretary to coastal political sub6 divisions shall be allocated to each coastal 

7 political subdivision in accordance with 

8 subparagraphs (B) and (C) of section 

9 31(b)(4). 

10 ‘‘(3) MINIMUM ALLOCATION.—The amount allo11 cated to a new producing State for each fiscal year 

12 under paragraph (2) shall be at least 5 percent of 

13 the amounts available under for the fiscal year 

14 under paragraph (1)(B)(i). 

15 ‘‘(4) TIMING.—The amounts required to be de16 posited under subparagraph (B) of paragraph (1) 

17 for the applicable fiscal year shall be made available 

18 in accordance with that subparagraph during the fis19 cal year immediately following the applicable fiscal 

20 year. 

21 ‘‘(5) AUTHORIZED USES.— 

22 ‘‘(A) IN GENERAL.—Subject to subpara23 graph (B), each new producing State and coast24 al political subdivision shall use all amounts re25 ceived under paragraph (2) in accordance with 


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1 all applicable Federal and State laws, only for 

2 1 or more of the following purposes: 

3 ‘‘(i) Projects and activities for the 

4 purposes of coastal protection, including 

5 conservation, coastal restoration, and hur6 ricane protection. 

7 ‘‘(ii) Mitigation of damage to fish, 

8 wildlife, or natural resources. 

9 ‘‘(iii) Implementation of a federally10 approved marine, coastal, or comprehensive 

11 conservation management plan. 

12 ‘‘(iv) Mitigation of the impact of outer 

13 Continental Shelf activities through the 

14 funding of onshore projects. 

15 ‘‘(v) Planning assistance and the ad16 ministrative costs of complying with this 

17 section. 

18 ‘‘(B) LIMITATION.—Not more than 3 per19 cent of amounts received by a new producing 

20 State or coastal political subdivision under 

21 paragraph (2) may be used for the purposes de22 scribed in subparagraph (A)(v). 

23 ‘‘(6) ADMINISTRATION.—Amounts made avail24 able under paragraph (1)(B) shall— 


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1 ‘‘(A) be made available, without further 

2 appropriation, in accordance with this sub3 section; 

4 ‘‘(B) remain available until expended; and 

5 ‘‘(C) be in addition to any amounts appro6 priated under— 

7 ‘‘(i) other provisions of this Act; 

8 ‘‘(ii) the Land and Water Conserva9 tion Fund Act of 1965 (16 U.S.C. 460l–4 

10 et seq.); or 

11 ‘‘(iii) any other provision of law. 

12 ‘‘(d) DISPOSITION OF QUALIFIED OUTER CONTI13 NENTAL SHELF REVENUES FROM OTHER AREAS.—Not14 withstanding section 9, for each applicable fiscal year, the 

15 terms and conditions of subsection (c) shall apply to the 

16 disposition of qualified outer Continental Shelf revenues 

17 that— 

18 ‘‘(1) are derived from oil or gas leasing in an 

19 area that is not included in the current 5-year plan 

20 of the Secretary for oil or gas leasing; and 

21 ‘‘(2) are not assumed in the budget of the 

22 United States Government submitted by the Presi23 dent under section 1105 of title 31, United States 

24 Code. 

25 ‘‘(e) DUE DILIGENCE REQUIRED.— 


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1 ‘‘(1) NEW PRODUCING AREA LEASES.—Each 

2 lease entered into under this section shall provide 

3 that if a lessee fails to initiate development of the 

4 oil or gas resources in the new producing area sub5 ject to the lease by the date that is 2 years after the 

6 date of the issuance of the lease— 

7 ‘‘(A) the lease shall terminate; and 

8 ‘‘(B) the Secretary shall conduct a new 

9 lease sale for the new producing area that was 

10 subject to the terminated lease. 

11 ‘‘(2) EXISTING LEASES.— 

12 ‘‘(A) IN GENERAL.—Any lease entered into 

13 under any other section of this Act that is in 

14 effect on the date of enactment of this section 

15 shall terminate at the end of the 10-year lease 

16 period specified in the lease. 

17 ‘‘(B) AVAILABILITY FOR LEASING.—The 

18 Secretary shall conduct a new lease sale for any 

19 area subject to a lease terminated under sub20 paragraph (A) in accordance with this Act. 

21 ‘‘(C) LEASE REQUIREMENTS.—Any lease 

22 issued under a lease sale conducted under sub23 paragraph (B) shall provide that if a lessee fails 

24 to initiate development of the oil or gas re25 sources in the area subject to the lease by the 


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1 date that is 2 years after the date of the 

2 issuance of the lease— 

3 ‘‘(i) the lease shall terminate; and 

4 ‘‘(ii) the Secretary shall conduct a 

5 new lease sale for the area that was sub6 ject to the terminated lease.’’. 

7 TITLE II—ALTERNATIVE 

8 RESOURCES 

9 Subtitle A—Renewable Fuel and 

10 Advanced Energy Technology 

11 SEC. 201. ENERGY INDEPENDENCE TRUST FUND. 

12 (a) ESTABLISHMENT.—There is established in the 

13 Treasury of the United States a revolving fund, to be 

14 known as the ‘‘Energy Independence Trust Fund’’ (re15 ferred to in this section as the ‘‘Fund’’), consisting of such 

16 amounts as are deposited in the Fund under section 

17 32(c)(1)(A)(i) of the Outer Continental Shelf Lands Act 

18 (as added by section 102). 

19 (b) EXPENDITURES FROM FUND.— 

20 (1) IN GENERAL.—Subject to paragraph (2), on 

21 request by the Secretary, the Secretary of the Treas22 ury shall transfer from the Fund to the Secretary 

23 such amounts as the Secretary determines are nec24 essary to carry out the following: 


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1 (A) Section 609 of the Public Utility Regu2 latory Policies Act of 1978 (7 U.S.C. 918c). 

3 (B) Title V of the Toxic Substances Con4 trol Act (15 U.S.C. 2695 et seq.). 

5 (C) Sections 211(r), 212, and 329 of the 

6 Clean Air Act (42 U.S.C. 7545(r), 7546, 7628). 

7 (D) The following provisions of the Energy 

8 Policy and Conservation Act: 

9 (i) Section 324A (42 U.S.C. 6294a). 

10 (ii) Section 337(c) (42 U.S.C. 

11 6307(c)). 

12 (iii) Section 365(f) (42 U.S.C. 

13 6325(f)). 

14 (iv) Part E of title III (42 U.S.C. 

15 6341 et seq.). 

16 (v) Section 399A (42 U.S.C. 6371h– 

17 1). 

18 (E) The following provisions of the Energy 

19 Policy Act of 2005: 

20 (i) Section 107 (42 U.S.C. 15812). 

21 (ii) The amendments made by section 

22 123 (119 Stat. 616). 

23 (iii) Sections 124 through 127 (42 

24 U.S.C. 15821 through 15824). 


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1 (iv) The amendments made by section 

2 128 (119 Stat. 619). 

3 (v) Sections 133 and 134 (42 U.S.C. 

4 15831, 15832). 

5 (vi) Section 140 (42 U.S.C. 15833). 

6 (vii) Section 201 (42 U.S.C. 15851). 

7 (viii) The amendments made by sec8 tion 202 (119 Stat. 651). 

9 (ix) The amendments made by section 

10 206 (119 Stat. 654). 

11 (x) Section 207 (119 Stat. 656). 

12 (xi) Sections 208 and 210 (42 U.S.C. 

13 15854, 15855). 

14 (xii) Sections 242 and 243 (42 U.S.C. 

15 15881, 15882). 

16 (xiii) The amendments made by sec17 tion 251 (119 Stat. 679). 

18 (xiv) Section 252 (42 U.S.C. 15891). 

19 (xv) Sections 706, 712, 721, and 731 

20 (42 U.S.C. 16051, 16062, 16071, 16081). 

21 (xvi) Subtitle C of title VII (42 U.S.C. 

22 16091 et seq.). 

23 (xvii) Sections 751 and 755 through 

24 758 (42 U.S.C. 16101, 16103 through 

25 16106). 


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1 (xviii) Section 771 (119 Stat. 834). 

2 (xix) Sections 782 and 783 (42 

3 U.S.C. 16122, 16123). 

4 (xx) Sections 805, 808, 809, and 812 

5 (42 U.S.C. 16154, 16157, 16158, 16161). 

6 (xxi) Sections 911, 917, 921, and 931 

7 (42 U.S.C. 16191, 16197, 16211, 16231). 

8 (xxii) The amendments made by sec9 tion 941 (119 Stat. 873). 

10 (xxiii) Sections 942, 944 through 947, 

11 and 963 (42 U.S.C. 16251, 16253 through 

12 16256, 16293). 

13 (xxiv) Sections 1510, 1514, and 1516 

14 (42 U.S.C. 16501, 16502, 16503). 

15 (F) The following provisions of the Energy 

16 Independence and Security Act of 2007: 

17 (i) Sections 131 and 135 (42 U.S.C. 

18 17011, 17012). 

19 (ii) Sections 207, 223, 229, 230, 234, 

20 244, and 246 (42 U.S.C. 17022, 17032, 

21 17033, 17034, 17035, 17052, 17053). 

22 (iii) Section 243 (121 Stat. 1540). 

23 (iv) Section 411 (42 U.S.C. 6872 

24 note; Public Law 110–140). 


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1 (v) Sections 422, 440, 452, 491, and 

2 495 (42 U.S.C. 17082, 17096, 17111, 

3 17121, 17124). 

4 (vi) Section 501 (121 Stat. 1655). 

5 (vii) Section 502 (2 U.S.C. 2169). 

6 (viii) The amendments made by sec7 tion 505 (121 Stat. 1656). 

8 (ix) Section 517 (42 U.S.C. 17131). 

9 (x) Subtitle E of title V (42 U.S.C. 

10 17151 et seq.). 

11 (xi) Section 602 (42 U.S.C. 17171). 

12 (xii) Sections 604 through 607 (42 

13 U.S.C. 17172 through 17175). 

14 (xiii) Subtitles B through E of title VI 

15 (42 U.S.C. 17191 et seq.) (other than sec16 tion 653). 

17 (xiv) Sections 703, 705, 707, 708, 

18 711, and 712 (42 U.S.C. 17251, 17253, 

19 17255, 17256, 17271, 17272). 

20 (xv) Sections 805 and 807 (42 U.S.C. 

21 17284, 17286). 

22 (xvi) Sections 912, 913, 916, 917, 

23 925, and 927 (42 U.S.C. 17332, 17333, 

24 17336, 17337, 17355, 17357). 

25 (G) Section 202. 


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1 (H) Subtitle C. 

2 (2) ADMINISTRATIVE EXPENSES.—An amount 

3 not exceeding 5 percent of the amounts in the Fund 

4 shall be available for each fiscal year to pay the ad5 ministrative expenses necessary to carry out this sec6 tion. 

7 (c) TRANSFERS OF AMOUNTS.— 

8 (1) IN GENERAL.—The amounts required to be 

9 transferred to the Fund under this section shall be 

10 transferred at least monthly from the general fund 

11 of the Treasury to the Fund on the basis of esti12 mates made by the Secretary of the Treasury. 

13 (2) ADJUSTMENTS.—Proper adjustment shall 

14 be made in amounts subsequently transferred to the 

15 extent prior estimates were in excess of or less than 

16 the amounts required to be transferred. 

17 SEC. 202. LOAN GUARANTEES FOR RENEWABLE FUEL PIPE18 LINES. 

19 (a) DEFINITIONS.—In this section: 

20 (1) COST.—The term ‘‘cost’’ has the meaning 

21 given the term ‘‘cost of a loan guarantee’’ in section 

22 502(5)(C) of the Federal Credit Reform Act of 1990 

23 (2 U.S.C. 661a(5)(C)). 


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1 (2) ELIGIBLE PROJECT.—The term eligible 

2 project means a project described in subsection 

3 (b)(1). 

4 (3) GUARANTEE.— 

5 (A) IN GENERAL.—The term ‘‘guarantee’’ 

6 has the meaning given the term ‘‘loan guar7 antee’’ in section 502 of the Federal Credit Re8 form Act of 1990 (2 U.S.C. 661a). 

9 (B) INCLUSION.—The term ‘‘guarantee’’ 

10 includes a loan guarantee commitment (as de11 fined in section 502 of the Federal Credit Re12 form Act of 1990 (2 U.S.C. 661a)). 

13 (4) RENEWABLE FUEL.—The term ‘‘renewable 

14 fuel’’ has the meaning given the term in section 

15 211(o)(1) of the Clean Air Act (42 U.S.C. 

16 7545(o)(1)) (as in effect on January 1, 2009). 

17 (5) RENEWABLE FUEL PIPELINE.—The term 

18 ‘‘renewable fuel pipeline’’ means a common carrier 

19 pipeline for transporting renewable fuel. 

20 (b) LOAN GUARANTEES.— 

21 (1) IN GENERAL.—The Secretary shall make 

22 guarantees under this section for projects that pro23 vide for the construction of new renewable fuel pipe24 lines. 


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1 (2) ELIGIBILITY.—In determining the eligibility 

2 of a project for a guarantee under this section, the 

3 Secretary shall consider— 

4 (A) the volume of renewable fuel to be 

5 moved by the renewable fuel pipeline; 

6 (B) the size of the markets to be served by 

7 the renewable fuel pipeline; 

8 (C) the existence of sufficient storage to 

9 facilitate access to the markets served by the 

10 renewable fuel pipeline; 

11 (D) the proximity of the renewable fuel 

12 pipeline to ethanol production facilities; 

13 (E) the investment of the entity carrying 

14 out the proposed project in terminal infrastruc15 ture; 

16 (F) the experience of the entity carrying 

17 out the proposed project in working with renew18 able fuels; 

19 (G) the ability of the entity carrying out 

20 the proposed project to maintain the quality of 

21 the renewable fuel through— 

22 (i) the terminal system of the entity; 

23 and 

24 (ii) the dedicated pipeline system; 


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1 (H) the ability of the entity carrying out 

2 the proposed project to complete the project in 

3 a timely manner; and 

4 (I) the ability of the entity carrying out the 

5 proposed project to secure property rights-of6 way in order to move the proposed project for7 ward in a timely manner. 

8 (3) AMOUNT.—Unless otherwise provided by 

9 law, a guarantee by the Secretary under this section 

10 shall not exceed an amount equal to 90 percent of 

11 the eligible project cost of the renewable fuel pipeline 

12 that is the subject of the guarantee, as estimated at 

13 the time at which the guarantee is issued or subse14 quently modified while the eligible project is under 

15 construction. 

16 (4) TERMS AND CONDITIONS.—Guarantees 

17 under this section shall be provided in accordance 

18 with section 1702 of the Energy Policy Act of 2005 

19 (42 U.S.C. 16512), except that subsections (b) and 

20 (c) of that section shall not apply to guarantees 

21 under this section. 

22 (5) EXISTING FUNDING AUTHORITY.—The Sec23 retary shall make a guarantee under this section 

24 under an existing funding authority. 


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1 (6) FINAL RULE.—Not later than 90 days after 

2 the date of enactment of this Act, the Secretary 

3 shall publish in the Federal Register a final rule di4 recting the Director of the Department of Energy 

5 Loan Guarantee Program Office to initiate the loan 

6 guarantee program under this section in accordance 

7 with this section. 

8 (c) FUNDING.— 

9 (1) IN GENERAL.—There are authorized to be 

10 appropriated such sums as are necessary to provide 

11 $4,000,000,000 in guarantees under this section. 

12 (2) USE OF OTHER APPROPRIATED FUNDS.—To 

13 the extent that the amounts made available under 

14 title XVII of the Energy Policy Act of 2005 (42 

15 U.S.C. 16511 et seq.) have not been disbursed to 

16 programs under that title, the Secretary may use the 

17 amounts to carry out this section. 

18 Subtitle B—Clean Coal-Derived 

19 Fuels for Energy Security 

20 SEC. 211. DEFINITIONS. 

21 In this subtitle: 

22 (1) CLEAN COAL-DERIVED FUEL.— 

23 (A) IN GENERAL.—The term ‘‘clean coal24 derived fuel’’ means aviation fuel, motor vehicle 

25 fuel, home heating oil, or boiler fuel that is— 


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1 (i) substantially derived from the coal 

2 resources of the United States; and 

3 (ii) refined or otherwise processed at a 

4 facility located in the United States that 

5 captures— 

6 (I) at least 50 percent of the car7 bon dioxide emissions that would oth8 erwise be released at the facility; or 

9 (II) if the Secretary determines 

10 that it is commercially feasible to cap11 ture a higher percentage of carbon di12 oxide emissions, a percentage equal to 

13 or greater than the percentage of car14 bon dioxide emissions determined by 

15 the Secretary to be commercially fea16 sible of being captured. 

17 (B) INCLUSIONS.—The term ‘‘clean coal18 derived fuel’’ may include any other resource 

19 that is extracted, grown, produced, or recovered 

20 in the United States. 

21 (2) COVERED FUEL.—The term ‘‘covered fuel’’ 

22 means— 

23 (A) aviation fuel; 

24 (B) motor vehicle fuel; 

25 (C) home heating oil; and 


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1 (D) boiler fuel. 

2 (3) SMALL REFINERY.—The term ‘‘small refin3 ery’’ means a refinery for which the average aggre4 gate daily crude oil throughput for a calendar year 

5 (as determined by dividing the aggregate throughput 

6 for the calendar year by the number of days in the 

7 calendar year) does not exceed 75,000 barrels. 

8 SEC. 212. CLEAN COAL-DERIVED FUEL PROGRAM. 

9 (a) PROGRAM.— 

10 (1) IN GENERAL.—Not later than 1 year after 

11 the date of enactment of this Act, the President 

12 shall promulgate regulations to ensure that covered 

13 fuel sold or introduced into commerce in the United 

14 States (except in noncontiguous States or terri15 tories), on an annual average basis, contains the ap16 plicable volume of clean coal-derived fuel determined 

17 in accordance with paragraph (4). 

18 (2) PROVISIONS OF REGULATIONS.—Regardless 

19 of the date of promulgation, the regulations promul20 gated under paragraph (1)— 

21 (A) shall contain compliance provisions ap22 plicable to refineries, blenders, distributors, and 

23 importers, as appropriate, to ensure that— 

24 (i) the requirements of this subsection 

25 are met; and 


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1 (ii) clean coal-derived fuels produced 

2 from facilities for the purpose of compli3 ance with this subtitle result in life cycle 

4 greenhouse gas emissions that are not 

5 greater than gasoline; and 

6 (B) shall not— 

7 (i) restrict geographic areas in the 

8 contiguous United States in which clean 

9 coal-derived fuel may be used; or 

10 (ii) impose any per-gallon obligation 

11 for the use of clean coal-derived fuel. 

12 (3) RELATIONSHIP TO OTHER REGULATIONS.— 

13 Regulations promulgated under this paragraph shall, 

14 to the maximum extent practicable, incorporate the 

15 program structure, compliance and reporting re16 quirements established under the final regulations 

17 promulgated to implement the renewable fuel pro18 gram established by the amendment made by section 

19 1501(a)(2) of the Energy Policy Act of 2005 (Public 

20 Law 109–58; 119 Stat. 1067). 

21 (4) APPLICABLE VOLUME.— 

22 (A) CALENDAR YEARS 2015 THROUGH

23 2022.—For the purpose of this subsection, the 

24 applicable volume for any of calendar years 


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1 2015 through 2022 shall be determined in ac2 cordance with the following table: 

Calendar year: 

Applicable volume of clean coal-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 

3 (B) CALENDAR YEAR 2023 AND THERE4 AFTER.—Subject to subparagraph (C), for the 

5 purposes of this subsection, the applicable vol6 ume for calendar year 2023 and each calendar 

7 year thereafter shall be determined by the 

8 President, in coordination with the Secretary 

9 and the Administrator of the Environmental 

10 Protection Agency, based on a review of the im11 plementation of the program during calendar 

12 years 2015 through 2022, including a review 

13 of— 

14 (i) the impact of clean coal-derived 

15 fuels on the energy security of the United 

16 States; 

17 (ii) the expected annual rate of future 

18 production of clean coal-derived fuels; and 


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1 (iii) the impact of the use of clean 

2 coal-derived fuels on other factors, includ3 ing job creation, rural economic develop4 ment, and the environment. 

5 (C) MINIMUM APPLICABLE VOLUME.—For 

6 the purpose of this subsection, the applicable 

7 volume for calendar year 2023 and each cal8 endar year thereafter shall be equal to the prod9 uct obtained by multiplying— 

10 (i) the number of gallons of covered 

11 fuel that the President estimates will be 

12 sold or introduced into commerce in the 

13 calendar year; and 

14 (ii) the ratio that— 

15 (I) 6,000,000,000 gallons of 

16 clean coal-derived fuel; bears to 

17 (II) the number of gallons of cov18 ered fuel sold or introduced into com19 merce in calendar year 2022. 

20 (b) APPLICABLE PERCENTAGES.— 

21 (1) PROVISION OF ESTIMATE OF VOLUMES OF

22 CERTAIN FUEL SALES.—Not later than October 31 

23 of each of calendar years 2015 through 2021, the 

24 Administrator of the Energy Information Adminis25 tration shall provide to the President an estimate, 


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1 with respect to the following calendar year, of the 

2 volumes of covered fuel projected to be sold or intro3 duced into commerce in the United States. 

4 (2) DETERMINATION OF APPLICABLE PERCENT5 AGES.— 

6 (A) IN GENERAL.—Not later than Novem7 ber 30 of each of calendar years 2015 through 

8 2022, based on the estimate provided under 

9 paragraph (1), the President shall determine 

10 and publish in the Federal Register, with re11 spect to the following calendar year, the clean 

12 coal-derived fuel obligation that ensures that 

13 the requirements of subsection (a) are met. 

14 (B) REQUIRED ELEMENTS.—The clean 

15 coal-derived fuel obligation determined for a 

16 calendar year under subparagraph (A) shall— 

17 (i) be applicable to refineries, blend18 ers, and importers, as appropriate; 

19 (ii) be expressed in terms of a volume 

20 percentage of covered fuel sold or intro21 duced into commerce in the United States; 

22 and 

23 (iii) subject to paragraph (3)(A), con24 sist of a single applicable percentage that 


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1 applies to all categories of persons speci2 fied in clause (i). 

3 (3) ADJUSTMENTS.—In determining the appli4 cable percentage for a calendar year, the President 

5 shall make adjustments— 

6 (A) to prevent the imposition of redundant 

7 obligations on any person specified in para8 graph (2)(B)(i); and 

9 (B) to account for the use of clean coal-de10 rived fuel during the previous calendar year by 

11 small refineries that are exempt under sub12 section (f). 

13 (c) VOLUME CONVERSION FACTORS FOR CLEAN

14 COAL-DERIVED FUELS BASED ON ENERGY CONTENT.— 

15 (1) IN GENERAL.—For the purpose of sub16 section (a), the President shall assign values to spe17 cific types of clean coal-derived fuel for the purpose 

18 of satisfying the fuel volume requirements of sub19 section (a)(4) in accordance with this subsection. 

20 (2) ENERGY CONTENT RELATIVE TO DIESEL

21 FUEL.—For clean coal-derived fuels, 1 gallon of the 

22 clean coal-derived fuel shall be considered to be the 

23 equivalent of 1 gallon of diesel fuel multiplied by the 

24 ratio that— 


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1 (A) the number of British thermal units of 

2 energy produced by the combustion of 1 gallon 

3 of the clean coal-derived fuel (as measured 

4 under conditions determined by the Secretary); 

5 bears to 

6 (B) the number of British thermal units of 

7 energy produced by the combustion of 1 gallon 

8 of diesel fuel (as measured under conditions de9 termined by the Secretary to be comparable to 

10 conditions described in subparagraph (A)). 

11 (d) CREDIT PROGRAM.— 

12 (1) IN GENERAL.—The President, in consulta13 tion with the Secretary and the Administrator of the 

14 Environmental Protection Agency, shall implement a 

15 credit program to manage the clean coal-derived fuel 

16 requirement of this section in a manner consistent 

17 with the credit program established by the amend18 ment made by section 1501(a)(2) of the Energy Pol19 icy Act of 2005 (Public Law 109–58; 119 Stat. 

20 1067). 

21 (2) MARKET TRANSPARENCY.—In carrying out 

22 the credit program under this subsection, the Presi23 dent shall facilitate price transparency in markets 

24 for the sale and trade of credits, with due regard for 


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1 the public interest, the integrity of those markets, 

2 fair competition, and the protection of consumers. 

3 (e) WAIVERS.— 

4 (1) IN GENERAL.—The President, in consulta5 tion with the Secretary and the Administrator of the 

6 Environmental Protection Agency, may waive the re7 quirements of subsection (a) in whole or in part on 

8 petition by 1 or more States by reducing the na9 tional quantity of clean coal-derived fuel required 

10 under subsection (a), based on a determination by 

11 the President (after public notice and opportunity 

12 for comment), that— 

13 (A) implementation of the requirement 

14 would severely harm the economy or environ15 ment of a State, a region, or the United States; 

16 or 

17 (B) extreme and unusual circumstances 

18 exist that prevent distribution of an adequate 

19 supply of domestically-produced clean coal-de20 rived fuel to consumers in the United States. 

21 (2) PETITIONS FOR WAIVERS.—The President, 

22 in consultation with the Secretary and the Adminis23 trator of the Environmental Protection Agency, shall 

24 approve or disapprove a State petition for a waiver 

25 of the requirements of subsection (a) within 90 days 


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1 after the date on which the petition is received by 

2 the President. 

3 (3) TERMINATION OF WAIVERS.—A waiver 

4 granted under paragraph (1) shall terminate after 1 

5 year, but may be renewed by the President after 

6 consultation with the Secretary and the Adminis7 trator of the Environmental Protection Agency. 

8 (f) SMALL REFINERIES.— 

9 (1) TEMPORARY EXEMPTION.— 

10 (A) IN GENERAL.—The requirements of 

11 subsection (a) shall not apply to small refineries 

12 until calendar year 2018. 

13 (B) EXTENSION OF EXEMPTION.— 

14 (i) STUDY BY SECRETARY.—Not later 

15 than December 31, 2013, the Secretary 

16 shall submit to the President and Congress 

17 a report describing the results of a study 

18 to determine whether compliance with the 

19 requirements of subsection (a) would im20 pose a disproportionate economic hardship 

21 on small refineries. 

22 (ii) EXTENSION OF EXEMPTION.—In 

23 the case of a small refinery that the Sec24 retary determines under clause (i) would 

25 be subject to a disproportionate economic 


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1 hardship if required to comply with sub2 section (a), the President shall extend the 

3 exemption under subparagraph (A) for the 

4 small refinery for a period of not less than 

5 2 additional years. 

6 (2) PETITIONS BASED ON DISPROPORTIONATE

7 ECONOMIC HARDSHIP.— 

8 (A) EXTENSION OF EXEMPTION.—A small 

9 refinery may at any time petition the President 

10 for an extension of the exemption under para11 graph (1) for the reason of disproportionate 

12 economic hardship. 

13 (B) EVALUATION OF PETITIONS.—In eval14 uating a petition under subparagraph (A), the 

15 President, in consultation with the Secretary, 

16 shall consider the findings of the study under 

17 paragraph (1)(B) and other economic factors. 

18 (C) DEADLINE FOR ACTION ON PETI19 TIONS.—The President shall act on any petition 

20 submitted by a small refinery for a hardship ex21 emption not later than 90 days after the date 

22 of receipt of the petition. 

23 (3) OPT-IN FOR SMALL REFINERIES.—A small 

24 refinery shall be subject to the requirements of sub25 section (a) if the small refinery notifies the PresiVerDate Aug 31 2005 01:17 Jun 14, 2008 Jkt 069200 PO 00000 Frm 00035 Fmt 6652 Sfmt 6201 E:\BILLS\S3126.IS S3126

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1 dent that the small refinery waives the exemption 

2 under paragraph (1). 

3 (g) PENALTIES AND ENFORCEMENT.— 

4 (1) CIVIL PENALTIES.— 

5 (A) IN GENERAL.—Any person that vio6 lates a regulation promulgated under subsection 

7 (a), or that fails to furnish any information re8 quired under such a regulation, shall be liable 

9 to the United States for a civil penalty of not 

10 more than the total of— 

11 (i) $25,000 for each day of the viola12 tion; and 

13 (ii) the amount of economic benefit or 

14 savings received by the person resulting 

15 from the violation, as determined by the 

16 President. 

17 (B) COLLECTION.—Civil penalties under 

18 subparagraph (A) shall be assessed by, and col19 lected in a civil action brought by, the Secretary 

20 or such other officer of the United States as is 

21 designated by the President. 

22 (2) INJUNCTIVE AUTHORITY.— 

23 (A) IN GENERAL.—The district courts of 

24 the United States shall have jurisdiction to— 


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1 (i) restrain a violation of a regulation 

2 promulgated under subsection (a); 

3 (ii) award other appropriate relief; 

4 and 

5 (iii) compel the furnishing of informa6 tion required under the regulation. 

7 (B) ACTIONS.—An action to restrain such 

8 violations and compel such actions shall be 

9 brought by and in the name of the United 

10 States. 

11 (C) SUBPOENAS.—In the action, a sub12 poena for a witness who is required to attend 

13 a district court in any district may apply in any 

14 other district. 

15 (h) EFFECTIVE DATE.—Except as otherwise specifi16 cally provided in this section, this section takes effect on 

17 January 1, 2016. 

18 Subtitle C—Nuclear Energy 

19 SEC. 221. INCENTIVES FOR INNOVATIVE TECHNOLOGIES. 

20 (a) DEFINITION OF PROJECT COST.—Section 1701 

21 of the Energy Policy Act of 2005 (42 U.S.C. 16511) is 

22 amended by adding at the end the following: 

23 ‘‘(6) PROJECT COST.— 

24 ‘‘(A) IN GENERAL.—The term ‘project 

25 cost’ means any cost associated with the develVerDate Aug 31 2005 01:17 Jun 14, 2008 Jkt 069200 PO 00000 Frm 00037 Fmt 6652 Sfmt 6201 E:\BILLS\S3126.IS S3126

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1 opment, planning, design, engineering, permit2 ting and licensing, construction, commissioning, 

3 start-up, shakedown, and financing of a facility. 

4 ‘‘(B) INCLUSIONS.—The term ‘project 

5 cost’ includes— 

6 ‘‘(i) reasonable escalation and contin7 gencies; 

8 ‘‘(ii) the cost of and fees for a guar9 antee; 

10 ‘‘(iii) reasonably required reserve 

11 funds; 

12 ‘‘(iv) initial working capital; and 

13 ‘‘(v) interest accrued during construc14 tion.’’. 

15 (b) TERMS AND CONDITIONS; AMOUNT.—Section 

16 1702 of the Energy Policy Act of 2005 (42 U.S.C. 16512) 

17 is amended by striking subsections (b) and (c) and insert18 ing the following: 

19 ‘‘(b) SPECIFIC APPROPRIATION OR CONTRIBU20 TION.— 

21 ‘‘(1) IN GENERAL.—No guarantee shall be 

22 made unless— 

23 ‘‘(A) the Secretary has received from the 

24 borrower and deposited in the Treasury a pay25 ment in full for the cost of the obligation; 


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1 ‘‘(B) an appropriation for the cost has 

2 been made in lieu of a payment being made; or 

3 ‘‘(C) a combination of actions described in 

4 subparagraphs (A) and (B) has been carried 

5 out such that, when combined, the actions are 

6 sufficient to cover the cost of the obligation. 

7 ‘‘(2) RELATION TO OTHER LAWS.—Section 

8 504(b) of the Federal Credit Reform Act of 1990 (2 

9 U.S.C. 661c(b)) shall not apply to a loan guarantee 

10 made in accordance with paragraph (1)(B). 

11 ‘‘(c) AMOUNT.—– 

12 ‘‘(1) IN GENERAL.—Subject to paragraph (2), 

13 the Secretary shall guarantee 100 percent of the ob14 ligation for a facility that is the subject of the guar15 antee, or a lesser amount if requested by the bor16 rower. 

17 ‘‘(2) LIMITATION.—The total amount of loans 

18 guaranteed for a facility by the Secretary shall not 

19 exceed 80 percent of the total cost of the facility, as 

20 estimated at the time at which the guarantee is 

21 issued.’’. 

22 (c) FEES.—Section 1702(h) of the Energy Policy Act 

23 of 2005 (42 U.S.C. 16512(h)) is amended by striking 

24 paragraph (2) and inserting the following: 


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1 ‘‘(2) AVAILABILITY.—Fees collected under this 

2 subsection shall— 

3 ‘‘(A) be deposited by the Secretary into a 

4 special fund in the Treasury, to be known as 

5 the ‘Incentives For Innovative Technologies 

6 Fund’; and 

7 ‘‘(B) remain available to the Secretary for 

8 expenditure, without further appropriation or 

9 fiscal year limitation, for administrative ex10 penses incurred in carrying out this title.’’. 

11 (d) REPORT TO CONGRESS.—Section 1702 of the En12 ergy Policy Act of 2005 (42 U.S.C. 16512) is amended 

13 by adding at the end the following: 

14 ‘‘(k) REPORT TO CONGRESS.— 

15 ‘‘(1) IN GENERAL.—Not later than 1 year after 

16 the date of enactment of this subsection and annu17 ally thereafter, the Secretary shall submit to Con18 gress a report that summarizes the applications for 

19 loan guarantees received, loan guarantees approved 

20 and rejected, and justifications for rejections of loan 

21 guarantees, under this title. 

22 ‘‘(2) TERMINATION OF AUTHORITY.—Beginning 

23 with fiscal year 2018, the Secretary shall provide, in 

24 the annual report submitted for each fiscal year 

25 under paragraph (1), a recommendation on whether 


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1 all or part of the loan guarantee program under this 

2 title should be terminated.’’. 

3 SEC. 222. AUTHORIZATION FOR NUCLEAR POWER 2010 PRO4 GRAM. 

5 Section 952 of the Energy Policy Act of 2005 (42 

6 U.S.C. 16272) is amended by striking subsection (c) and 

7 inserting the following: 

8 ‘‘(c) NUCLEAR POWER 2010 PROGRAM.— 

9 ‘‘(1) IN GENERAL.—The Secretary shall carry 

10 out a Nuclear Power 2010 Program to position the 

11 United States to commence construction of new nu12 clear power plants by not later than— 

13 ‘‘(A) calendar year 2010; or 

14 ‘‘(B) such first calendar year after cal15 endar year 2010 as is practicable. 

16 ‘‘(2) SCOPE OF PROGRAM.—The Nuclear Power 

17 2010 Program shall support the objectives of— 

18 ‘‘(A) demonstrating the licensing process 

19 for new nuclear power plants, including the Nu20 clear Regulatory Commission process for ob21 taining— 

22 ‘‘(i) early site permits; 

23 ‘‘(ii) combined construction or oper24 ating licenses; and 

25 ‘‘(iii) design certifications; and 


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1 ‘‘(B) conducting first-of-a-kind design and 

2 engineering work on at least 2 advanced nu3 clear reactor designs sufficient to bring those 

4 designs to a state of design completion suffi5 cient to allow development of firm cost esti6 mates. 

7 ‘‘(3) COST-SHARING.—The Nuclear Power 2010 

8 Program shall be carried out through the use of 

9 cost-sharing with the private sector. 

10 ‘‘(4) AUTHORIZATION OF APPROPRIATIONS.— 

11 There are authorized to be appropriated to the Sec12 retary to carry out the Nuclear Power 2010 Pro13 gram— 

14 ‘‘(A) $182,800,000 for fiscal year 2009; 

15 ‘‘(B) $159,600,000 for fiscal year 2010; 

16 ‘‘(C) $135,600,000 for fiscal year 2011; 

17 ‘‘(D) $46,900,000 for fiscal year 2012; 

18 and 

19 ‘‘(E) $2,200,000 for fiscal year 2013.’’. 

20 SEC. 223. DOMESTIC MANUFACTURING BASE FOR NUCLEAR 

21 COMPONENTS AND EQUIPMENT. 

22 (a) ESTABLISHMENT OF INTERAGENCY WORKING

23 GROUP.— 

24 (1) PURPOSES.—The purposes of this section 

25 are— 


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1 (A) to increase the competitiveness of the 

2 United States nuclear energy products and 

3 services industries; 

4 (B) to identify the stimulus or incentives 

5 necessary to cause United States manufacturers 

6 of nuclear energy products to expand manufac7 turing capacity; 

8 (C) to facilitate the export of United 

9 States nuclear energy products and services; 

10 (D) to reduce the trade deficit of the 

11 United States through the export of United 

12 States nuclear energy products and services; 

13 (E) to retain and create nuclear energy 

14 manufacturing and related service jobs in the 

15 United States; 

16 (F) to integrate the objectives described in 

17 subparagraphs (A) through (E), in a manner 

18 consistent with the interests of the United 

19 States, into the foreign policy of the United 

20 States; and 

21 (G) to authorize funds for increasing 

22 United States capacity to manufacture nuclear 

23 energy products and supply nuclear energy 

24 services. 

25 (2) ESTABLISHMENT.— 


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1 (A) IN GENERAL.—There is established an 

2 interagency working group (referred to in this 

3 section as the ‘‘Working Group’’) that, in con4 sultation with representative industry organiza5 tions and manufacturers of nuclear energy 

6 products, shall make recommendations to co7 ordinate the actions and programs of the Fed8 eral Government in order to promote increasing 

9 domestic manufacturing capacity and export of 

10 domestic nuclear energy products and services. 

11 (B) COMPOSITION.—The Working Group 

12 shall be composed of— 

13 (i) the Secretary (or a designee), who 

14 shall serve as Chairperson of the Working 

15 Group; and 

16 (ii) representatives, appointed by the 

17 head of each applicable agency or depart18 ment, of— 

19 (I) the Department of Energy; 

20 (II) the Department of Com21 merce; 

22 (III) the Department of Defense; 

23 (IV) the Department of Treas24 ury; 

25 (V) the Department of State; 


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1 (VI) the Environmental Protec2 tion Agency; 

3 (VII) the United States Agency 

4 for International Development; 

5 (VIII) the Export-Import Bank 

6 of the United States; 

7 (IX) the Trade and Development 

8 Agency; 

9 (X) the Small Business Adminis10 tration; 

11 (XI) the Office of the United 

12 States Trade Representative; and 

13 (XII) other Federal agencies, as 

14 determined by the President. 

15 (3) DUTIES OF WORKING GROUP.—The Work16 ing Group shall— 

17 (A) not later than 180 days after the date 

18 of enactment of this Act, identify the actions 

19 necessary to promote the safe development and 

20 application in foreign countries of nuclear en21 ergy products and services— 

22 (i) to increase electricity generation 

23 from nuclear energy sources through devel24 opment of new generation facilities; 


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1 (ii) to improve the efficiency, safety, 

2 and reliability of existing nuclear gener3 ating facilities through modifications; and 

4 (iii) enhance the safe treatment, han5 dling, storage, and disposal of used nuclear 

6 fuel; 

7 (B) not later than 180 days after the date 

8 of enactment of this Act, identify— 

9 (i) mechanisms (including tax stimuli 

10 for investment, loans and loan guarantees, 

11 and grants) necessary for United States 

12 companies to increase— 

13 (I) the capacity of the companies 

14 to produce or provide nuclear energy 

15 products and services; and 

16 (II) exports of nuclear energy 

17 products and services; and 

18 (ii) administrative or legislative initia19 tives that are necessary— 

20 (I) to encourage United States 

21 companies to increase the manufac22 turing capacity of the companies for 

23 nuclear energy products; 

24 (II) to provide technical and fi25 nancial assistance and support to 


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1 small and mid-sized businesses to es2 tablish quality assurance programs in 

3 accordance with domestic and inter4 national nuclear quality assurance 

5 code requirements; 

6 (III) to encourage, through fi7 nancial incentives, private sector cap8 ital investment to expand manufac9 turing capacity; and 

10 (IV) to provide technical assist11 ance and financial incentives to small 

12 and mid-sized businesses to develop 

13 the workforce necessary to increase 

14 manufacturing capacity and meet do15 mestic and international nuclear qual16 ity assurance code requirements; 

17 (C) not later than 270 days after the date 

18 of enactment of this Act, submit to Congress a 

19 report that describes the findings of the Work20 ing Group under subparagraphs (A) and (B), 

21 including recommendations for new legislative 

22 authority, as necessary; and 

23 (D) encourage the agencies represented by 

24 membership in the Working Group— 


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1 (i) to provide technical training and 

2 education for international development 

3 personnel and local users in other coun4 tries; 

5 (ii) to provide financial and technical 

6 assistance to nonprofit institutions that 

7 support the marketing and export efforts 

8 of domestic companies that provide nuclear 

9 energy products and services; 

10 (iii) to develop nuclear energy projects 

11 in foreign countries; 

12 (iv) to provide technical assistance 

13 and training materials to loan officers of 

14 the World Bank, international lending in15 stitutions, commercial and energy attaches 

16 at embassies of the United States, and 

17 other appropriate personnel in order to 

18 provide information about nuclear energy 

19 products and services to foreign govern20 ments or other potential project sponsors; 

21 (v) to support, through financial in22 centives, private sector efforts to commer23 cialize and export nuclear energy products 

24 and services in accordance with the subsidy 


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1 codes of the World Trade Organization; 

2 and 

3 (vi) to augment budgets for trade and 

4 development programs in order to support 

5 prefeasibility or feasibility studies for 

6 projects that use nuclear energy products 

7 and services. 

8 (4) PERSONNEL AND SERVICE MATTERS.—The 

9 Secretary and the heads of agencies represented by 

10 membership in the Working Group shall detail such 

11 personnel and furnish such services to the Working 

12 Group, with or without reimbursement, as are nec13 essary to carry out the functions of the Working 

14 Group. 

15 (5) AUTHORIZATION OF APPROPRIATIONS.— 

16 There is authorized to be appropriated to the Sec17 retary to carry out this subsection $20,000,000 for 

18 each of fiscal years 2009 and 2010. 

19 (b) CREDIT FOR QUALIFYING NUCLEAR POWER

20 MANUFACTURING.— 

21 (1) CREDIT FOR QUALIFYING NUCLEAR POWER

22 MANUFACTURING.—Subpart E of part IV of sub23 chapter A of chapter 1 of the Internal Revenue Code 

24 is amended by inserting after section 48B the fol25 lowing new section: 


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1 ‘‘SEC. 48C. QUALIFYING NUCLEAR POWER MANUFAC2 TURING CREDIT. 

3 ‘‘(a) IN GENERAL.—For purposes of section 46, the 

4 qualifying nuclear power manufacturing credit for any 

5 taxable year is an amount equal to 20 percent of the quali6 fied investment for such taxable year. 

7 ‘‘(b) QUALIFIED INVESTMENT.— 

8 ‘‘(1) IN GENERAL.—For purposes of subsection 

9 (a), the qualified investment for any taxable year is 

10 the basis of eligible property placed in service by the 

11 taxpayer during such taxable year— 

12 ‘‘(A) which is either part of a qualifying 

13 nuclear power manufacturing project or is 

14 qualifying nuclear power manufacturing equip15 ment; 

16 ‘‘(B)(i) the construction, reconstruction, or 

17 erection of which is completed by the taxpayer; 

18 or 

19 ‘‘(ii) which is acquired by the taxpayer if 

20 the original use of such property commences 

21 with the taxpayer; 

22 ‘‘(C) with respect to which depreciation (or 

23 amortization in lieu of depreciation) is allow24 able; and 

25 ‘‘(D) which is placed in service on or be26 fore December 31, 2015. 


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1 ‘‘(2) SPECIAL RULE FOR CERTAIN SUBSIDIZED

2 PROPERTY.—Rules similar to section 48(a)(4) shall 

3 apply for purposes of this section. 

4 ‘‘(3) CERTAIN QUALIFIED PROGRESS EXPENDI5 TURES RULES MADE APPLICABLE.—Rules similar to 

6 the rules of subsections (c)(4) and (d) of section 46 

7 (as in effect on the day before the enactment of the 

8 Revenue Reconciliation Act of 1990) shall apply for 

9 purposes of this section. 

10 ‘‘(c) DEFINITIONS.—For purposes of this section: 

11 ‘‘(1) QUALIFYING NUCLEAR POWER MANUFAC12 TURING PROJECT.—The term ‘qualifying nuclear 

13 power manufacturing project’ means any project 

14 which is designed primarily to enable the taxpayer to 

15 produce or test equipment necessary for the con16 struction or operation of a nuclear power plant. 

17 ‘‘(2) QUALIFYING NUCLEAR POWER MANUFAC18 TURING EQUIPMENT.—The term ‘qualifying nuclear 

19 power manufacturing equipment’ means machine 

20 tools and other similar equipment, including com21 puters and other peripheral equipment, acquired or 

22 constructed primarily to enable the taxpayer to 

23 produce or test equipment necessary for the con24 struction or operation of a nuclear power plant. 


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1 ‘‘(3) PROJECT.—The term ‘project’ includes 

2 any building constructed to house qualifying nuclear 

3 power manufacturing equipment.’’. 

4 (2) CONFORMING AMENDMENTS.— 

5 (A) ADDITIONAL INVESTMENT CREDIT.— 

6 Section 46 of such Code is amended by— 

7 (i) striking ‘‘and’’ at the end of para8 graph (3); 

9 (ii) striking the period at the end of 

10 paragraph (4) and inserting ‘‘, and’’; and 

11 (iii) inserting after paragraph (4) the 

12 following new paragraph: 

13 ‘‘(5) the qualifying nuclear power manufac14 turing credit.’’. 

15 (B) APPLICATION OF SECTION 49.—Sub16 paragraph (C) of section 49(a)(1) of such Code 

17 is amended by— 

18 (i) striking ‘‘and’’ at the end of clause 

19 (iii); 

20 (ii) striking the period at the end of 

21 clause (iv) and inserting ‘‘, and’’; and 

22 (iii) inserting after clause (iv) the fol23 lowing new clause: 

24 ‘‘(v) the basis of any property which 

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1 ment manufacturing project under section 

2 48C.’’. 

3 (C) TABLE OF SECTIONS.—The table of 

4 sections for such subpart E is amended by in5 serting after the item relating to section 48B 

6 the following new item: 

‘‘Sec. 48C. Qualifying nuclear power manufacturing credit.’’. 

7 (c) EFFECTIVE DATE.—The amendments made by 

8 this section shall apply to property— 

9 (1) the construction, reconstruction, or erection 

10 of which of began after the date of enactment of this 

11 Act, or 

12 (2) which was acquired by the taxpayer on or 

13 after the date of enactment of this Act and not pur14 suant to a binding contract which was in effect on 

15 the day prior to the date of enactment. 

16 SEC. 224. NUCLEAR ENERGY WORKFORCE. 

17 Section 1101 of the Energy Policy Act of 2005 (42 

18 U.S.C. 16411) is amended— 

19 (1) by redesignating subsection (d) as sub20 section (e); and 

21 (2) by inserting after subsection (c) the fol22 lowing: 

23 ‘‘(d) WORKFORCE TRAINING.— 

24 ‘‘(1) IN GENERAL.—The Secretary of Labor, in 

25 cooperation with the Secretary of Energy, shall proVerDate Aug 31 2005 01:17 Jun 14, 2008 Jkt 069200 PO 00000 Frm 00053 Fmt 6652 Sfmt 6201 E:\BILLS\S3126.IS S3126

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1 mulgate regulations to implement a program to pro2 vide workforce training to meet the high demand for 

3 workers skilled in the nuclear utility and nuclear en4 ergy products and services industries. 

5 ‘‘(2) CONSULTATION.—In carrying out this sub6 section, the Secretary of Labor shall consult with 

7 representatives of the nuclear utility and nuclear en8 ergy products and services industries, and organized 

9 labor, concerning skills that are needed in those in10 dustries. 

11 ‘‘(3) AUTHORIZATION OF APPROPRIATIONS.— 

12 There are authorized to be appropriated to the Sec13 retary of Labor, in coordination with the Secretary 

14 of Education and the Secretary of Energy, to carry 

15 out this subsection $20,000,000 for each of fiscal 

16 years 2009 through 2012.’’. 

17 SEC. 225. INVESTMENT TAX CREDIT FOR INVESTMENTS IN 

18 NUCLEAR POWER FACILITIES. 

19 (a) NEW CREDIT FOR NUCLEAR POWER FACILI20 TIES.—Section 46 of the Internal Revenue Code of 1986, 

21 as amended by this title, is amended by— 

22 (1) striking ‘‘and’’ at the end of paragraph (4); 

23 (2) striking the period at the end of paragraph 

24 (5) and inserting ‘‘, and’’; and 


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1 (3) inserting after paragraph (5) the following 

2 new paragraph: 

3 ‘‘(5) the nuclear power facility construction 

4 credit.’’. 

5 (b) NUCLEAR POWER FACILITY CONSTRUCTION

6 CREDIT.—Subpart E of part IV of subchapter A of chap7 ter 1 of the Internal Revenue Code of 1986, as amended 

8 by this title, is amended by inserting after section 48C 

9 the following new section: 

10 ‘‘SEC. 48D. NUCLEAR POWER FACILITY CONSTRUCTION 

11 CREDIT. 

12 ‘‘(a) IN GENERAL.—For purposes of section 46, the 

13 nuclear power facility construction credit for any taxable 

14 year is 10 percent of the qualified nuclear power facility 

15 expenditures with respect to a qualified nuclear power fa16 cility. 

17 ‘‘(b) WHEN EXPENDITURES TAKEN INTO AC18 COUNT.— 

19 ‘‘(1) IN GENERAL.—Qualified nuclear power fa20 cility expenditures shall be taken into account for 

21 the taxable year in which the qualified nuclear power 

22 facility is placed in service. 

23 ‘‘(2) COORDINATION WITH SUBSECTION (C).— 

24 The amount which would (but for this paragraph) be 

25 taken into account under paragraph (1) with respect 


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1 to any qualified nuclear power facility shall be re2 duced (but not below zero) by any amount of quali3 fied nuclear power facility expenditures taken into 

4 account under subsection (c) by the taxpayer or a 

5 predecessor of the taxpayer (or, in the case of a sale 

6 and leaseback described in section 50(a)(2)(C), by 

7 the lessee), to the extent any amount so taken into 

8 account has not been required to be recaptured 

9 under section 50(a). 

10 ‘‘(c) PROGRESS EXPENDITURES.— 

11 ‘‘(1) IN GENERAL.—A taxpayer may elect to 

12 take into account qualified nuclear power facility 

13 expenditures– 

14 ‘‘(A) SELF-CONSTRUCTED PROPERTY.—In 

15 the case of a qualified nuclear power facility 

16 which is a self-constructed facility, in the tax17 able year for which such expenditures are prop18 erly chargeable to capital account with respect 

19 to such facility; and 

20 ‘‘(B) ACQUIRED FACILITY.—In the case of 

21 a qualified nuclear facility which is not self-con22 structed property, in the taxable year in which 

23 such expenditures are paid. 

24 ‘‘(2) SPECIAL RULES FOR APPLYING PARA25 GRAPH (1).—For purposes of paragraph (1)– 


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1 ‘‘(A) COMPONENT PARTS, ETC.—Property 

2 which is not self-constructed property and 

3 which is to be a component part of, or is other4 wise to be included in, any facility to which this 

5 subsection applies shall be taken into account in 

6 accordance with paragraph (1)(B); 

7 ‘‘(B) CERTAIN BORROWING DIS8 REGARDED.—Any amount borrowed directly or 

9 indirectly by the taxpayer on a nonrecourse 

10 basis from the person constructing the facility 

11 for the taxpayer shall not be treated as an 

12 amount expended for such facility; and 

13 ‘‘(C) LIMITATION FOR FACILITIES OR COM14 PONENTS WHICH ARE NOT SELF-CON15 STRUCTED.— 

16 ‘‘(i) IN GENERAL.—In the case of a 

17 facility or a component of a facility which 

18 is not self-constructed, the amount taken 

19 into account under paragraph (1)(B) for 

20 any taxable year shall not exceed the 

21 amount which represents the portion of the 

22 overall cost to the taxpayer of the facility 

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1 ity or component which is completed dur2 ing such taxable year. 

3 ‘‘(ii) CARRY-OVER OF CERTAIN

4 AMOUNTS.—In the case of a facility or 

5 component of a facility which is not self6 constructed, if for the taxable year— 

7 ‘‘(I) the amount which (but for 

8 clause (i)) would have been taken into 

9 account under paragraph (1)(B) ex10 ceeds the limitation of clause (i), then 

11 the amount of such excess shall be 

12 taken into account under paragraph 

13 (1)(B) for the succeeding taxable 

14 year; or 

15 ‘‘(II) the limitation of clause (i) 

16 exceeds the amount taken into ac17 count under paragraph (1)(B), then 

18 the amount of such excess shall in19 crease the limitation of clause (i) for 

20 the succeeding taxable year. 

21 ‘‘(D) DETERMINATION OF PERCENTAGE OF

22 COMPLETION.—The determination under sub23 paragraph (C)(i) of the portion of the overall 

24 cost to the taxpayer of the construction which 

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1 pleted during any taxable year shall be made on 

2 the basis of engineering or architectural esti3 mates or on the basis of cost accounting 

4 records. Unless the taxpayer establishes other5 wise by clear and convincing evidence, the con6 struction shall be deemed to be completed not 

7 more rapidly than ratably over the normal con8 struction period. 

9 ‘‘(E) NO PROGRESS EXPENDITURES FOR

10 CERTAIN PRIOR PERIODS.—No qualified nuclear 

11 facility expenditures shall be taken into account 

12 under this subsection for any period before the 

13 first day of the first taxable year to which an 

14 election under this subsection applies. 

15 ‘‘(F) NO PROGRESS EXPENDITURES FOR

16 PROPERTY FOR YEAR IT IS PLACED IN SERVICE, 

17 ETC.—In the case of any qualified nuclear facil18 ity, no qualified nuclear facility expenditures 

19 shall be taken into account under this sub20 section for the earlier of— 

21 ‘‘(i) the taxable year in which the fa22 cility is placed in service; or 

23 ‘‘(ii) the first taxable year for which 

24 recapture is required under section 


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1 50(a)(2) with respect to such facility, or 

2 for any taxable year thereafter. 

3 ‘‘(3) SELF-CONSTRUCTED.—For purposes of 

4 this subsection– 

5 ‘‘(A) The term ‘self-constructed facility’ 

6 means any facility if it is reasonable to believe 

7 that more than half of the qualified nuclear fa8 cility expenditures for such facility will be made 

9 directly by the taxpayer. 

10 ‘‘(B) A component of a facility shall be 

11 treated as not self-constructed if the cost of the 

12 component is at least 5 percent of the expected 

13 cost of the facility and the component is ac14 quired by the taxpayer. 

15 ‘‘(4) ELECTION.—An election shall be made 

16 under this section for a qualified nuclear power facil17 ity by claiming the nuclear power facility construc18 tion credit for expenditures described in paragraph 

19 (1) on a tax return filed by the due date for such 

20 return (taking into account extensions). Such an 

21 election shall apply to the taxable year for which 

22 made and all subsequent taxable years. Such an 

23 election, once made, may be revoked only with the 

24 consent of the Secretary. 


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1 ‘‘(d) DEFINITIONS AND SPECIAL RULES.—For pur2 poses of this section– 

3 ‘‘(1) QUALIFIED NUCLEAR POWER FACILITY.— 

4 The term ‘qualified nuclear power facility’ means an 

5 advanced nuclear power facility, as defined in section 

6 45J, the construction of which was approved by the 

7 Nuclear Regulatory Commission on or before De8 cember 31, 2013. 

9 ‘‘(2) QUALIFIED NUCLEAR POWER FACILITY

10 EXPENDITURES.— 

11 ‘‘(A) IN GENERAL.—The term ‘qualified 

12 nuclear power facility expenditures’ means any 

13 amount properly chargeable to capital ac14 count— 

15 ‘‘(i) with respect to a qualified nuclear 

16 power facility; 

17 ‘‘(ii) for which depreciation is allow18 able under section 168; and 

19 ‘‘(iii) which are incurred before the 

20 qualified nuclear power facility is placed in 

21 service or in connection with the placement 

22 of such facility in service. 

23 ‘‘(B) PRE-EFFECTIVE DATE EXPENDI24 TURES.—Qualified nuclear power facility ex25 penditures do not include any expenditures inVerDate Aug 31 2005 01:17 Jun 14, 2008 Jkt 069200 PO 00000 Frm 00061 Fmt 6652 Sfmt 6201 E:\BILLS\S3126.IS S3126

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1 curred by the taxpayer before January 1, 2007, 

2 unless such expenditures constitute less than 20 

3 percent of the total qualified nuclear power fa4 cility expenditures (determined without regard 

5 to this subparagraph) for the qualified nuclear 

6 power facility. 

7 ‘‘(3) DELAYS AND SUSPENSION OF CONSTRUC8 TION.— 

9 ‘‘(A) IN GENERAL.—For purposes of ap10 plying this section and section 50, a nuclear 

11 power facility that is under construction shall 

12 cease to be treated as a facility that will be a 

13 qualified nuclear power facility as of the earlier 

14 of— 

15 ‘‘(i) the date on which the taxpayer 

16 decides to terminate construction of the fa17 cility; or 

18 ‘‘(ii) the last day of any 24 month pe19 riod in which the taxpayer has failed to 

20 incur qualified nuclear power facility ex21 penditures totaling at least 20 percent of 

22 the expected total cost of the nuclear 

23 power facility. 

24 ‘‘(B) AUTHORITY TO WAIVE.—The Sec25 retary may waive the application of clause (ii) 


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1 of subparagraph (A) if the Secretary deter2 mines that the taxpayer intended to continue 

3 the construction of the qualified nuclear power 

4 facility and the expenditures were not incurred 

5 for reasons outside the control of the taxpayer. 

6 ‘‘(C) RESUMPTION OF CONSTRUCTION.—If 

7 a nuclear power facility that is under construc8 tion ceases to be a qualified nuclear power facil9 ity by reason of paragraph (2) and work is sub10 sequently resumed on the construction of such 

11 facility— 

12 ‘‘(i) the date work is subsequently re13 sumed shall be treated as the date that 

14 construction began for purposes of para15 graph (1); and 

16 ‘‘(ii) if the facility is a qualified nu17 clear power facility, the qualified nuclear 

18 power facility expenditures shall be deter19 mined without regard to any delay or tem20 porary termination of construction of the 

21 facility.’’. 

22 (c) PROVISIONS RELATING TO CREDIT RECAP23 TURE.— 

24 (1) PROGRESS EXPENDITURE RECAPTURE

25 RULES.— 


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1 (A) BASIC RULES.—Subparagraph (A) of 

2 section 50(a)(2) of the Internal Revenue Code 

3 of 1986 is amended to read as follows: 

4 ‘‘(A) IN GENERAL.—If during any taxable 

5 year any building to which section 47(d) applied 

6 or any facility to which section 48D(c) applied 

7 ceases (by reason of sale or other disposition, 

8 cancellation or abandonment of contract, or 

9 otherwise) to be, with respect to the taxpayer, 

10 property which, when placed in service, will be 

11 a qualified rehabilitated building or a qualified 

12 nuclear power facility, then the tax under this 

13 chapter for such taxable year shall be increased 

14 by an amount equal to the aggregate decrease 

15 in the credits allowed under section 38 for all 

16 prior taxable years which would have resulted 

17 solely from reducing to zero the credit deter18 mined under this subpart with respect to such 

19 building or facility.’’. 

20 (B) AMENDMENT TO EXCESS CREDIT RE21 CAPTURE RULE.—Subparagraph (B) of section 

22 50(a)(2) of such Code is amended by— 

23 (i) inserting ‘‘or paragraph (2) of sec24 tion 48D(b)’’ after ‘‘paragraph (2) of sec25 tion 47(b)’’; 


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1 (ii) inserting ‘‘or section 48D(b)(1)’’ 

2 after ‘‘section 47(b)(1)’’; and 

3 (iii) inserting ‘‘or facility’’ after 

4 ‘‘building’’. 

5 (C) AMENDMENT OF SALE AND LEASE6 BACK RULE.—Subparagraph (C) of section 

7 50(a)(2) of such Code is amended by— 

8 (i) inserting ‘‘or section 48D(c)’’ after 

9 ‘‘section 47(d)’’; and 

10 (ii) inserting ‘‘or qualified nuclear 

11 power facility expenditures’’ after ‘‘quali12 fied rehabilitation expenditures’’. 

13 (D) OTHER AMENDMENT.—Subparagraph 

14 (D) of section 50(a)(2) of such Code is amend15 ed by inserting ‘‘or section 48D(c)’’ after ‘‘sec16 tion 47(d)’’. 

17 (d) NO BASIS ADJUSTMENT.—Section 50(c) of the 

18 Internal Revenue Code of 1986 is amended by inserting 

19 at the end thereof the following new paragraph: 

20 ‘‘(6) NUCLEAR POWER FACILITY CONSTRUC21 TION CREDIT.—Paragraphs (1) and (2) shall not 

22 apply to the nuclear power facility construction cred23 it.’’. 

24 (e) TECHNICAL AMENDMENTS.—The table of sec25 tions for subpart E of part IV of subchapter A of chapter 


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1 1 of the Internal Revenue Code of 1986, as amended by 

2 this subtitle, is amended by inserting after the item relat3 ing to section 48C the following new item: 

‘‘Sec. 48D. Nuclear power facility construction credit.’’. 

4 (f) EFFECTIVE DATE.—The amendments made by 

5 this section shall be effective for expenditures incurred and 

6 property placed in service in taxable years beginning after 

7 the date of enactment of this Act. 

Æ 


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