(b) TREATMENT OF REVENUES.—Section 21 of the 
Mineral Leasing Act (30 U.S.C. 241) is amended by add-
ing at the end the following: 
‘‘(e) REVENUES.— 
‘‘(1) IN GENERAL.—Notwithstanding the provi-
sions of section 35, all revenues received from and 
under an oil shale or tar sands lease shall be dis-
posed in the Treasury as miscellaneous receipts. 
‘‘(2) 
ROYALTY
RATES
FOR
COMMERCIAL 
LEASES.— 
‘‘(A) ROYALTY
RATES.—The Secretary 
shall model the royalty schedule for oil shale 
and tar sands leases based on the royalty pro-
gram currently in effect for the production of 
synthetic crude oil from oil sands in the Prov-
ince of Alberta, Canada. 
‘‘(B) REDUCTION.—The Secretary shall re-
duce any royalty otherwise required to be paid 
under subparagraph (A) under any oil shale or 
tar sands lease on a sliding scale based upon 
market price, with a 10 percent reduction if the 
average futures price of NYMEX Light Sweet 
Crude, or a similar index, drops, for the pre-
vious quarter year, below $50 (in January 1, 
2006, dollars), and an 80 percent reduction if 
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the average price drops below $30 (in January 
1, 2006, dollars) for the quarter previous to the 
one in which the production is sold.’’. 
TITLE III—NUCLEAR ENERGY 
SEC. 301. INCENTIVES FOR INNOVATIVE TECHNOLOGIES. 
(a) 
DEFINITION
OF
PROJECT
COST.—Section 
1701(1) of the Energy Policy Act of 2005 (42 U.S.C. 
16511(1)) is amended by inserting a new paragraph (4) 
and renumbering the paragraphs accordingly: 
‘‘(4) PROJECT COST.—The term ‘project cost’ 
means all costs associated with the development, 
planning, design, engineering, permitting and licens-
ing, construction, commissioning, start-up, shake-
down and financing of the facility, including but not 
limited to reasonable escalation and contingencies, 
the cost of and fees for the guarantee, reasonably re-
quired reserve funds, initial working capital and in-
terest during construction.’’. 
(b) TERMS AND CONDITIONS.—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 fol-
lowing: 
‘‘(b) SPECIFIC
APPROPRIATION
OR
CONTRIBU-
TION.— 
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‘‘(1) IN
GENERAL.—No guarantee shall be 
made unless— 
‘‘(A) an appropriation for the cost has 
been made; or 
‘‘(B) the Secretary has received from the 
borrower a payment in full for the cost of the 
obligation and deposited the payment into the 
Treasury; or 
‘‘(C) a combination of (A) and (B) has 
been made, that when combined is 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.—Section 1702 of the Energy Policy Act 
of 2005 (42 U.S.C. 16512) is amended by striking sub-
section (c) and inserting the following: 
‘‘(c) AMOUNT.— 
‘‘(1) IN GENERAL.—Subject to paragraph (2), 
the Secretary shall guarantee 100 percent of the ob-
ligation for a facility that is the subject of the guar-
antee, or a lesser amount if requested by the bor-
rower. 
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‘‘(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.’’. 
(d) 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 ex-
penses incurred in carrying out this title.’’. 
SEC. 302. STANDBY SUPPORT FOR CERTAIN NUCLEAR 
PLANT DELAYS. 
(a) DEFINITIONS.—Section 638(a) of the Energy 
Policy Act of 2005 (42 U.S.C. 16014(a)) is amended as 
follows: 
(1) By inserting the following: 
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‘‘(4) FULL POWER OPERATION.—The term ‘full 
power operation’ means whichever occurs first of— 
‘‘(A) the ‘commercial operation date’ or 
the equivalent under the terms of the financing 
documents for such facility, or 
‘‘(B) operation of such facility at an aver-
age of 50 percent or greater of nameplate ca-
pacity over any consecutive 30-day period. 
‘‘(5) INCREASED
PROJECT
COSTS.—The term 
‘increased project costs’ means the increased cost of 
constructing, commissioning, testing, operating or 
maintaining a reactor prior to full-power operation 
incurred as a result of a delay covered by the con-
tract including but not limited to costs of demobili-
zation and remobilization, increased costs of equip-
ment, materials and labor due to delay (including 
idle time), increased general and administrative 
costs, and escalation costs for completing construc-
tion. 
‘‘(6) LITIGATION.—The term ‘litigation’ means 
adjudication in Federal, State, local or tribal courts 
and administrative proceedings or hearings at or be-
fore Federal, State, local or tribal agencies or ad-
ministrative bodies.’’. 
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(2) By redesignating paragraph (4) as para-
graph (7). 
(b) CONTRACT AUTHORITY.—Section 638(b) of the 
Energy Policy Act of 2005 (42 U.S.C. §16014(b)) is 
amended by striking paragraph (1) and inserting the fol-
lowing: 
‘‘(1) IN GENERAL.—The Secretary may enter 
into contracts under this section with sponsors of an 
advanced nuclear facility that cover at any one time 
outstanding a total of not more than 6 reactors, 
with the 6 reactors consisting of not more than 3 
different reactor designs, in accordance with para-
graph (2). In the event that any contract entered 
into under this section terminates or expires without 
a claim being paid by the Secretary thereunder, then 
the Secretary may enter into a new contract under 
this section in replacement or substitution for such 
contract.’’. 
(c) COVERED COSTS.—Section 638(d) of the Energy 
Policy Act of 2005 (42. U.S.C. §16014(d)) is amended 
by striking paragraphs (2) and (3) and inserting the fol-
lowing: 
‘‘(2) COVERAGE.—In the case of reactors that 
receive combined licenses and on which construction 
is commenced, the Secretary shall pay— 
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‘‘(A) 100 percent of the covered costs of 
delay that occur after the initial 30-day period 
of covered delay; but 
‘‘(B) not more than $500,000,000 per con-
tract. 
‘‘(3) COVERED DEBT OBLIGATIONS.—Debt obli-
gations covered under subparagraph (A) of para-
graph (5) shall include but not be limited to debt ob-
ligations incurred to pay increased project costs.’’. 
(d) DISPUTE RESOLUTION.—Section 638 of the En-
ergy Policy Act of 2005 (42 U.S.C. 16014) is amended 
as follows: 
(1) by inserting the following: 
‘‘(f) DISPUTE RESOLUTION.—Any controversy or 
claim arising out of or relating to any contract entered 
into under this section shall be determined by arbitration 
in Washington, DC according to the then prevailing Com-
mercial Arbitration Rules of the American Arbitration As-
sociation. A decision by the arbitrator(s) shall be final and 
binding, and any court having jurisdiction may enter judg-
ment on it.’’; and 
(2) by designating subsections (f), (g), and (h) 
as subsections (g), (h), and (i) respectively. 
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SEC. 303. AUTHORIZATION FOR NUCLEAR POWER 2010 PRO-
GRAM. 
Section 952(c) of the Energy Policy Act of 2005 (42 
U.S.C. 16014) is amended by striking subsections (1) and 
(2) and substituting the following: 
(1) IN
GENERAL.—The Secretary shall carry 
out a Nuclear Power 2010 Program to position the 
nation to start construction of new nuclear power 
plants by 2010 or as close to 2010 as achievable. 
(2) SCOPE OF PROGRAM.—The Nuclear Power 
2010 Program shall be cost-shared with the private 
sector and shall support the following objectives: 
(A) Demonstrating the licensing process 
for new nuclear power plants, including the Nu-
clear Regulatory Commission process for ob-
taining early site permits (EPS), combined con-
struction/operating licenses (cols), and design 
certifications. 
(B) Conducting first-of-a-kind design and 
engineering work on at least two advanced nu-
clear reactor designs sufficient to bring those 
designs to a state of design completion suffi-
cient to allow development of firm cost esti-
mates. 
(3) AUTHORIZATION
OF
APPROPRIATIONS.— 
There are authorized to be appropriated to the Sec-
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retary to carry out the Nuclear Power 2010 Pro-
gram— 
(A) $182,800,000 for fiscal year 2008; 
(B) $159,600,000 for fiscal year 2009; 
(C) $135,600,000 for fiscal year 2010; 
(D) $46,900,000 for fiscal year 2011; and 
(E) $2,200,000 for fiscal year 2012. 
SEC. 304. DOMESTIC MANUFACTURING BASE FOR NUCLEAR 
COMPONENTS AND EQUIPMENT. 
(a) ESTABLISHMENT
OF INTERAGENCY WORKING 
GROUP.— 
(1) PURPOSES.— 
(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 manufac-
turing 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; 
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(E) to retain and create nuclear energy 
manufacturing and related service jobs in the 
United States; 
(F) to integrate the objectives in para-
graphs (1) through (4) 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) There shall be established an inter-
agency working group that, in consultation with 
representative industry organizations and man-
ufacturers of nuclear energy products, shall 
make recommendations to coordinate the ac-
tions and programs of the Federal Government 
in order to promote increasing domestic manu-
facturing capacity and export of domestic nu-
clear energy products and services. 
(B) The Interagency Working Group shall 
be composed of— 
(i) The Secretary of Energy, or the 
Secretary’s designee, shall chair the inter-
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agency working group. The Secretary of 
Energy shall provide staff for carrying out 
the functions of the interagency working 
group established under this section. 
(ii) representatives of— 
(I) the Department of Energy; 
(II) the Department of Com-
merce; 
(III) the Department of Defense; 
(IV) the Department of Treas-
ury; 
(V) the Department of State; 
(VI) the Environmental Protec-
tion 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 Adminis-
tration; 
(XI) the Office of the U.S. Trade 
Representative; and 
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(XII) other Federal agencies, as 
determined by the President. 
(iii) The heads of appropriate agencies 
shall detail such personnel and furnish 
such services to the interagency group, 
with or without reimbursement, as may be 
necessary to carry out the group’s func-
tions. 
(3) DUTIES OF THE INTERAGENCY WORKING 
GROUP.— 
(A) Within six months of enactment, the 
interagency working group established under 
section (1)(A) shall identify the actions nec-
essary to promote the safe development and ap-
plication in foreign countries of nuclear energy 
products and services in order to— 
(i) increase electricity generation from 
nuclear energy sources through develop-
ment of new generation facilities; 
(ii) improve the efficiency, safety and/ 
or reliability of existing nuclear generating 
facilities through modifications; and 
(iii) enhance the safe treatment, han-
dling, storage and disposal of used nuclear 
fuel. 
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(B) Within 6 months of enactment, the 
interagency working group shall identify mecha-
nisms (including, but not limited to, tax stim-
ulus for investment, loans and loan guarantees, 
and grants) necessary for United States compa-
nies to increase their capacity to produce or 
provide nuclear energy products and services, 
and to increase their exports of nuclear energy 
products and services. The interagency working 
group shall identify administrative or legislative 
initiatives necessary to— 
(i) encourage United States compa-
nies to increase their manufacturing capac-
ity for nuclear energy products; 
(ii) provide technical and financial as-
sistance and support to small and mid- 
sized businesses to establish quality assur-
ance programs in accordance with domestic 
and international nuclear quality assurance 
code requirements; 
(iii) encourage, through financial in-
centives, private sector capital investment 
to expand manufacturing capacity; and 
(iv) provide technical assistance and 
financial incentives to small and mid-sized 
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businesses to develop the work-force nec-
essary to increase manufacturing capacity 
and meet domestic and international nu-
clear quality assurance code requirements. 
(C) Within 9 months of enactment, the 
interagency working group shall provide a re-
port to Congress on its findings under Section 
(2)(A) and (B), including recommendations for 
new legislative authority where necessary. 
(4) 
TRADE
ASSISTANCE.—The 
interagency 
working group shall encourage the member agencies 
of the interagency working group to— 
(A) provide technical training and edu-
cation for international development personnel 
and local users in their own country; 
(B) provide financial and technical assist-
ance to nonprofit institutions that support the 
marketing and export efforts of domestic com-
panies that provide nuclear energy products and 
services; 
(C) develop nuclear energy projects in for-
eign countries; 
(D) provide technical assistance and train-
ing materials to loan officers of the World 
Bank, international lending institutions, com-
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mercial 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 govern-
ments or other potential project sponsors; 
(E) support, through financial incentives, 
private sector efforts to commercialize and ex-
port nuclear energy products and services in ac-
cordance with the subsidy codes of the World 
Trade Organization; and 
(F) augment budgets for trade and devel-
opment 
programs 
in 
order 
to 
support 
prefeasibility or feasibility studies for projects 
that utilize nuclear energy products and serv-
ices. 
(5) AUTHORIZATION
OF
APPROPRIATIONS.— 
There are authorized to be appropriated to the Sec-
retary for purposes of carrying out this title 
$20,000,000 for fiscal years 2008 and 2009. 
(b) 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: 
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‘‘SEC. 
48C. 
QUALIFYING 
NUCLEAR 
POWER 
MANUFAC-
TURING 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 quali-
fied 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 equip-
ment, 
‘‘(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 allow-
able, and 
‘‘(D) which is placed in service on or be-
fore December 31, 2015. 
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‘‘(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 EXPENDI-
TURES 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 MANUFAC-
TURING
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 con-
struction or operation of a nuclear power plant. 
‘‘(2) QUALIFYING NUCLEAR POWER MANUFAC-
TURING EQUIPMENT.—The term ‘qualifying nuclear 
power manufacturing equipment’ means machine 
tools and other similar equipment, including com-
puters and other peripheral equipment, acquired or 
constructed primarily to enable the taxpayer to 
produce or test equipment necessary for the con-
struction or operation of a nuclear power plant. 
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‘‘(3) PROJECT.—The term ‘project’ includes 
any building constructed to house qualifying nuclear 
power manufacturing equipment.’’. 
(c) CONFORMING AMENDMENTS.— 
(1) ADDITIONAL
INVESTMENT
CREDIT.—Sec-
tion 46 is amended by— 
(A) striking ‘‘and’’ at the end of paragraph 
(3); 
(B) striking the period at the end of para-
graph (4) and inserting ‘‘, and’’; and 
(C) inserting after paragraph (4) the fol-
lowing new paragraph: 
‘‘(5) the qualifying nuclear power manufac-
turing credit.’’. 
(2) APPLICATION
OF
SECTION
49.—Subpara-
graph (C) of section 49(a)(1) is amended by— 
(A) striking ‘‘and’’ at the end of clause 
(iii); 
(B) striking the period at the end of clause 
(iv) and inserting ‘‘, and’’; and 
(C) inserting after clause (iv) the following 
new clause: 
‘‘(v) the basis of any property which 
is part of a qualifying nuclear power equip-
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ment manufacturing project under section 
48C.’’. 
(3) TABLE OF SECTIONS.—The table of sections 
preceding section 46 is amended by inserting after 
the line for section 48B the following new line: 
‘‘Sec. 48C. Qualifying nuclear power manufacturing credit.’’. 
(d) 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; or 
(2) which was acquired by the taxpayer on or 
after the date of enactment and not pursuant to a 
binding contract which was in effect on the day prior 
to the date of enactment. 
SEC. 305. 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 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 pro-
mulgate regulations to implement a program to pro-
vide workforce training to meet the high demand for 
workers skilled in the nuclear utility and nuclear en-
ergy products and services industries. 
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‘‘(2) CONSULTATION.—In carrying out this sub-
section, the Secretary of Labor shall consult with 
representatives of the nuclear utility and nuclear en-
ergy products and services industries, and organized 
labor, concerning skills that are needed in those in-
dustries. 
‘‘(3) AUTHORIZATION
OF
APPROPRIATIONS.— 
There are authorized to be appropriated to the Sec-
retary of Labor, working in coordination with the 
Secretaries of Education and Energy $20,000,000 
for each of fiscal years 2008 through 2012 for use 
in implementing 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.’’. 
SEC. 306. LICENSING OF NEW NUCLEAR POWER PLANTS. 
Sections 189 and 185 of the Atomic Energy Act are 
amended thus: 
(1) HEARINGS AND JUDICIAL REVIEW.—Section 
189a.(1)(A) is modified thus: ‘‘In any proceeding 
under this Act, for the granting, suspending, revok-
ing, or amending of any license or construction per-
mit, or application to transfer control, and in any 
proceeding for the issuance or modification of rules 
and regulations dealing with the activities of licens-
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ees, and in any proceeding for the payment of com-
pensation, an award, or royalties under section 153, 
157, 186c., or 188, the Commission shall grant a 
hearing upon the request of any person whose inter-
est may be affected by the proceeding, and shall 
admit any such person as a party to such pro-
ceeding. The Commission may, in the absence of a 
request therefor by any person whose interest may 
be affected, issue a construction permit, an oper-
ating license or an amendment to a construction per-
mit or an amendment to an operating license with-
out a hearing, but upon thirty days’ notice and pub-
lication once in the Federal Register of its intent to 
do so. The Commission may dispense with such thir-
ty days’ notice and publication with respect to any 
application for an amendment to a construction per-
mit or an amendment to an operating license upon 
a determination by the Commission that the amend-
ment involves no significant hazards consideration.’’. 
(2) CONSTRUCTION PERMITS AND OPERATING 
LICENSES.—Section 185b is modified thus: ‘‘After 
any public hearing held under section 189a.(1)(A), 
the Commission shall issue to the applicant a com-
bined construction and operating license if the appli-
cation contains sufficient information to support the 
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100 
issuance of a combined license and the Commission 
determines that there is reasonable assurance that 
the facility will be constructed and will operate in 
conformity with the license, the provisions of this 
Act, and the Commission’s rules and regulations. 
The Commission shall identify within the combined 
license the inspections, tests, and analyses, including 
those applicable to emergency planning, that the li-
censee shall perform, and the acceptance criteria 
that, if met, are necessary and sufficient to provide 
reasonable assurance that the facility has been con-
structed and will be operated in conformity with the 
license, the provisions of this Act, and the Commis-
sion’s rules and regulations. Following issuance of 
the combined license, the Commission shall ensure 
that the prescribed inspections, tests, and analyses 
are performed and, prior to operation of the facility, 
shall find that the prescribed acceptance criteria are 
met. Any finding made under this subsection shall 
not require a hearing except as provided in section 
189a.(1)(B).’’. 
SEC. 307. INVESTMENT TAX CREDIT FOR INVESTMENTS IN 
NUCLEAR POWER FACILITIES. 
(a) NEW CREDIT
FOR NUCLEAR POWER FACILI-
TIES.—Section 46 is amended by— 
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101 
(1) striking ‘‘and’’ at the end of paragraph (3); 
(2) striking the period at the end of paragraph 
(4) and inserting ‘‘, and’’; and 
(3) inserting after paragraph (4) 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 chap-
ter 1 is amended by inserting after section 48B the fol-
lowing new section: 
‘‘SEC. 48C. 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 fa-
cility. 
‘‘(b) WHEN
EXPENDITURES
TAKEN
INTO
AC-
COUNT.— 
‘‘(1) IN GENERAL.—Qualified nuclear power fa-
cility expenditures shall be taken into account for 
the taxable year in which the qualified nuclear power 
facility is placed in service. 
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102 
‘‘(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 re-
duced (but not below zero) by any amount of quali-
fied 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 ex-
penditures. 
‘‘(A) SELF-CONSTRUCTED PROPERTY.—In 
the case of a qualified nuclear power facility 
which is a self-constructed facility, in the tax-
able year for which such expenditures are prop-
erly chargeable to capital account with respect 
to such facility. 
‘‘(B) ACQUIRED FACILITY.—In the case of 
a qualified nuclear facility which is not self-con-
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103 
structed property, in the taxable year in which 
such expenditures are paid. 
‘‘(2) SPECIAL
RULES
FOR
APPLYING
PARA-
GRAPH (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 other-
wise 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
DIS-
REGARDED.—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. 
‘‘(C) LIMITATION FOR FACILITIES OR COM-
PONENTS
WHICH
ARE
NOT
SELF-CON-
STRUCTED.— 
‘‘(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 
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104 
overall cost to the taxpayer of the facility 
or component of a facility which is prop-
erly attributable to the portion of the facil-
ity or component which is completed dur-
ing 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) ex-
ceeds 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 ac-
count under paragraph (1)(B), then 
the amount of such excess shall in-
crease the limitation of clause (i) for 
the succeeding taxable year. 
‘‘(D) DETERMINATION OF PERCENTAGE OF 
COMPLETION.—The determination under sub-
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paragraph (C)(i) of the portion of the overall 
cost to the taxpayer of the construction which 
is properly attributable to construction com-
pleted during any taxable year shall be made on 
the basis of engineering or architectural esti-
mates or on the basis of cost accounting 
records. Unless the taxpayer establishes other-
wise by clear and convincing evidence, the con-
struction shall be deemed to be completed not 
more rapidly than ratably over the normal con-
struction 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 facil-
ity, no qualified nuclear facility expenditures 
shall be taken into account under this sub-
section for the earlier of— 
‘‘(i) the taxable year in which the fa-
cility is placed in service; or 
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106 
‘‘(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 fa-
cility expenditures for such facility will be made 
directly by the tax-payer. 
‘‘(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 ac-
quired by the taxpayer. 
‘‘(4) ELECTION.—An election shall be made 
under this section for a qualified nuclear power facil-
ity by claiming the nuclear power facility construc-
tion 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 
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107 
election, once made, may be revoked only with the 
consent of the Secretary. 
‘‘(d) DEFINITIONS AND SPECIAL RULES.—For pur-
poses 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 De-
cember 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 ac-
count— 
‘‘(i) with respect to a qualified nuclear 
power facility; 
‘‘(ii) for which depreciation is allow-
able 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. 
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108 
‘‘(B) PRE-EFFECTIVE
DATE
EXPENDI-
TURES.—Qualified nuclear power facility ex-
penditures do not include any expenditures in-
curred by the taxpayer before January 1, 2007, 
unless such expenditures constitute less than 20 
percent of the total qualified nuclear power fa-
cility expenditures (determined without regard 
to this subparagraph) for the qualified nuclear 
power facility. 
‘‘(3) DELAYS AND SUSPENSION OF CONSTRUC-
TION.— 
‘‘(A) IN GENERAL.—For purposes of ap-
plying 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 fa-
cility; or 
‘‘(ii) the last day of any 24-month pe-
riod in which the taxpayer has failed to 
incur qualified nuclear power facility ex-
penditures totaling at least 20 percent of 
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109 
the expected total cost of the nuclear 
power facility. 
‘‘(B) AUTHORITY
TO
WAIVE.—The Sec-
retary may waive the application of clause (ii) 
of subparagraph (A) if the Secretary deter-
mines 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 construc-
tion ceases to be a qualified nuclear power facil-
ity by reason of paragraph (2) and work is sub-
sequently resumed on the construction of such 
facility— 
‘‘(i) the date work is subsequently re-
sumed shall be treated as the date that 
construction began for purposes of para-
graph (1); and 
‘‘(ii) if the facility is a qualified nu-
clear power facility, the qualified nuclear 
power facility expenditures shall be deter-
mined without regard to any delay or tem-
porary termination of construction of the 
facility.’’. 
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110 
(c) PROVISIONS
RELATING
TO
CREDIT
RECAP-
TURE.— 
(1) 
PROGRESS
EXPENDITURE
RECAPTURE 
RULES.— 
(A) BASIC RULES.—Subparagraph (A) of 
section 50(a)(2) 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 48C(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 deter-
mined under this subpart with respect to such 
building or facility.’’. 
(B) AMENDMENT TO EXCESS CREDIT RE-
CAPTURE RULE.—Subparagraph (B) of section 
50(a)(2) is amended by— 
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111 
(i) inserting ‘‘or paragraph (2) of sec-
tion 48C(b)’’ after ‘‘paragraph (2) of sec-
tion 47(b)’’; 
(ii) inserting ‘‘or section 48C(b)(1)’’ 
after ‘‘section 47(b)(1)’’; and 
(iii) 
inserting 
‘‘or 
facility’’ 
after 
‘‘building’’. 
(C) AMENDMENT
OF
SALE
AND
LEASE-
BACK
RULE.—Subparagraph (C) of section 
50(a)(2) is amended by— 
(i) inserting ‘‘or section 48C(c)’’ after 
‘‘section 47(d)’’; and 
(ii) inserting ‘‘or qualified nuclear 
power facility expenditures’’ after ‘‘quali-
fied rehabilitation expenditures’’. 
(D) OTHER AMENDMENT.—Subparagraph 
(D) of section 50(a)(2) is amended by inserting 
‘‘or section 48C(c)’’ after ‘‘section 47(d)’’. 
(d) NO
BASIS
ADJUSTMENT.—Section 50(c) is 
amended by inserting at the end thereof the following new 
paragraph: 
‘‘(6) NUCLEAR
POWER
FACILITY
CONSTRUC-
TION CREDIT.—Paragraphs (1) and (2) shall not 
apply to the nuclear power facility construction cred-
it.’’. 
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112 
(e) TECHNICAL AMENDMENTS.—The table of sec-
tions for subpart E of part IV of subchapter A of chapter 
1 is amended by inserting after the line for section 48B 
the following new line: 
‘‘Sec. 48C. 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. 
SEC. 308. NATIONAL NUCLEAR ENERGY COUNCIL. 
(a) IN GENERAL.— 
(1) The Secretary of Energy shall establish a 
National Nuclear Energy Council (hereinafter the 
‘‘Council’’). 
(2) The National Nuclear Energy Council shall 
be subject to the requirements of the Federal Advi-
sory Committee Act (5 U.S.C. Appendix 2). 
(b) PURPOSE.—The National Nuclear Energy Coun-
cil shall— 
(1) serve in an advisory capacity to the Sec-
retary of Energy regarding nuclear energy on mat-
ters submitted to the Council by the Secretary of 
Energy; and 
(2) advise, inform, and make recommendations 
to the Secretary of Energy, and represent the views 
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113 
of the nuclear energy industry with respect to any 
matter relating to nuclear energy. 
(c) MEMBERSHIP AND ORGANIZATION.— 
(1) The members of the Council shall be ap-
pointed by the Secretary of Energy. 
(2) The Council may establish such study and 
administrative committees as it may deem appro-
priate. Study committees shall only assist the Coun-
cil in preparing its advice, information, or rec-
ommendations to the Secretary of Energy. Adminis-
trative committees shall be formed solely for the 
purpose of assisting the Council or its Chairman in 
the management of the internal affairs of the Coun-
cil. 
(3) The officers of the Council shall consist of 
a Chairman, a Vice Chairman, and such other offi-
cers as may be approved by the Council. The Chair-
man and Vice Chairman must be members of the 
Council and shall receive no compensation for service 
as officers of the Council. 
(4) The Secretary of Energy shall be Cochair-
man of the Council. If the Secretary of Energy des-
ignates a full-time, salaried official of the Depart-
ment of Energy as his alternate, such alternate may 
exercise any duties of the Secretary of Energy and 
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114 
may perform any function on the Council otherwise 
reserved for the Secretary of Energy. 
(5) The Chairman and the Vice Chairman shall 
be elected by the Council at its organizational meet-
ing to serve until their successors are elected at the 
next organizational meeting of the Council. 
(d) MEETINGS.— 
(1) Regular meetings of the Council shall be 
held at least twice each year at times determined by 
the Chairman and approved by the Government Co-
chairman. 
(2) No meeting of the Council shall be held un-
less the Government Cochairman approves the agen-
da thereof, approves the calling thereof, and is 
present thereat. 
(3) The time and place of all Council meetings 
shall be given general publicity and such meetings 
shall be open to the public. 
(e) STUDIES BY THE COUNCIL.— 
(1) The Council may establish study committees 
to prepare reports for the consideration of the Coun-
cil pursuant to requests from the Secretary of En-
ergy for advice, information, and recommendations. 
(2) The Secretary of Energy or a full-time em-
ployee of the Department of Energy designated by 
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115 
the Secretary shall be the Cochairman of each study 
committee. 
(3) The members of study committees shall be 
selected from the Council membership on the basis 
of their training, experience, and general qualifica-
tions to deal with the matters assigned. 
SEC. 309. TEMPORARY SPENT NUCLEAR FUEL STORAGE 
AGREEMENTS. 
(a) AUTHORIZATION AND LOCATION.—The Secretary 
of Energy (Secretary) is authorized to initiate spent nu-
clear fuel storage agreements as provided herein. 
(1) No later than 180 days from the date of en-
actment of this Act, representatives of a community 
may submit written notice to the Secretary that the 
community is willing to host a temporary spent nu-
clear fuel storage facility within its jurisdiction. 
(2) Within 90 days of the receipt of the notifi-
cation under subsection (a)(1), the Secretary shall 
determine whether the identified site is suitable for 
a temporary storage facility. In determining the 
site’s suitability, the Secretary will evaluate technical 
feasibility and consider favorably local support for 
collocating a temporary spent nuclear fuel storage 
facility with facilities in-tended to develop and imple-
ment advanced nuclear fuel cycle technologies. 
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116 
(b) CONTENT OF AGREEMENTS.—If the Secretary 
determines one or more sites to be suitable in accordance 
with subsection (a)(2), negotiation of a temporary spent 
nuclear fuel storage facility agreement shall proceed. 
(1) Any temporary spent nuclear fuel storage 
agreement shall contain such terms and conditions, 
including financial, institutional and such other ar-
rangements as the Secretary and community deter-
mine to be reasonable and appropriate. 
(2) Any temporary spent nuclear fuel storage 
agreement may be amended only with the mutual 
consent of the parties to the agreement. 
(c) ENVIRONMENTAL IMPACT STATEMENT.—Execu-
tion of a temporary spent nuclear fuel storage agreement 
shall not require preparation of an environmental impact 
statement under section 102(2)(C) of the National Envi-
ronmental Policy Act of 1969 (42 U.S.C. 4332(2)(C)) or 
require any environmental review under subparagraph (E) 
or (F) of section 102(2) of such Act (42 U.S.C. 
4332(2)(E), (F)). 
SEC. 310. IMPLEMENTATION OF TEMPORARY SPENT NU-
CLEAR FUEL STORAGE AGREEMENTS. 
(a) IN GENERAL.—Any temporary spent nuclear fuel 
storage agreement or agreements entered into under sec-
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117 
tion 1 shall enter into force with respect to the United 
States if (and only if)— 
(1) the Secretary, at least 60 days before the 
day on which he or she enters into the temporary 
spent nuclear fuel storage agreement or agreements 
notifies the House of Representatives and the Senate 
of his intention to enter into the agreement or agree-
ments, and promptly thereafter publishes notice of 
such intention in the Federal Register; 
(2) the Governor of the State or States in 
which the facility is proposed to be located submits 
written notice to the Secretary that the Governor 
supports the temporary spent nuclear fuel storage 
agreement; and 
(3) after entering into the agreement, the Sec-
retary submits to the House of Representatives and 
to the Senate a copy of the final text of the agree-
ment, together with— 
(A) a draft of an implementing bill; and 
(B) a statement of any administrative ac-
tion proposed to implement the agreement. 
(b) APPLICATION OF EXPEDITED PROCEDURES TO 
IMPLEMENTING BILLS.—The provisions of section 3 apply 
to implementing bills submitted with respect to temporary 
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118 
spent nuclear fuel storage agreements entered into and 
submitted pursuant to section 2. 
SEC. 311. EXPEDITED PROCEDURES FOR CONGRESSIONAL 
REVIEW OF TEMPORARY SPENT NUCLEAR 
FUEL STORAGE AGREEMENTS. 
(a) RULES OF HOUSE OF REPRESENTATIVE AND 
SENATE.—The provisions of this subsection are enacted 
by the Congress— 
(1) as an exercise of the rulemaking power of 
the House of Representatives and the Senate, re-
spectively, and as such they are deemed a part of 
the rules of each House, respectively, but applicable 
only with respect to the procedure to be followed in 
that House in the case of implementing bills de- 
scribed in subsection (b)(2) of this section and ap-
proval resolutions described in subsection (b)(3) of 
this section; and they supersede other rules only to 
the extent that they are inconsistent therewith; and 
(2) with full recognition of the constitutional 
right of either House to change the rules (so far as 
relating to the procedure of that House) at any time, 
in the same manner and to the same extent as in 
the case of any other rule of that House. 
(b) DEFINITIONS.—For purposes of this section— 
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119 
(1) The term ‘‘community’’ means any entity of 
local government appropriate, in terms of legal au-
thority, for negotiating and entering into temporary 
spent nuclear fuel storage agreements provided for 
in section 1. 
(2) The term ‘‘implementing bill’’ means only a 
bill of either House of Congress which is introduced 
as provided in subsection (c) of this section with re-
spect to one or more temporary spent nuclear fuel 
storage agreements and which contain— 
(A) a provision approving such storage 
agreements; 
(B) a provision approving the statement of 
administrative action (if any) proposed to im-
plement such storage agreements; 
(C) if changes in existing laws or new stat-
utory authority is required to implement such 
storage agreement or agreements, provisions 
necessary or appropriate to implement such 
agreement or agreements either repealing or 
amending existing laws or providing new statu-
tory authority; and 
(D) a provision containing revenue meas-
ures (if any), by reason of which the bill must 
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120 
originate in the House of Representatives as 
provided for in subsection (c). 
(3) The term ‘‘approval resolution’’ means only 
a joint resolution of the two Houses of the Congress, 
the matter after the resolving clause of which is as 
follows: ‘‘That the Congress approves the temporary 
spent nuclear fuel storage agreement between the 
Secretary of Energy and lllllllll on 
llllll,’’ the first blank space being filled 
with the name of the governor involved and the sec-
ond blank space being filled in with the appropriate 
date. 
(c) INTRODUCTION AND REFERRAL.—On the day on 
which the temporary spent nuclear fuel storage agreement 
is submitted to the House of Representatives and the Sen-
ate under this title, the implementing bill submitted by 
the Secretary with respect to such temporary spent nu-
clear fuel storage agreement shall be introduced (by re-
quest) in the House by the majority leader of the House, 
for himself and the minority leader of the House, or by 
Members of the House designated by the majority leader 
and minority leader of the House; and shall be introduced 
(by request) in the Senate by the majority leader of the 
Senate, for himself and the minority leader of the Senate, 
or by Members of the Senate designated by the majority 
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leader and minority leader of the Senate. If either House 
is not in session on the day on which such temporary spent 
nuclear fuel storage agreement is submitted, the imple-
menting bill shall be introduced in that House, as provided 
in the preceding sentence, on the first day thereafter on 
which that House is in session. Such bills shall be referred 
by the Presiding Officers of the respective Houses to the 
appropriate committee, or, in the case of a bill containing 
provisions within the jurisdiction of two or more commit-
tees, jointly to such committees for consideration of those 
provisions within their respective jurisdictions. 
(d) AMENDMENTS PROHIBITED.—No amendment to 
an implementing bill or approval resolution shall be in 
order in either the House of Representatives or the Sen-
ate; and no motion to suspend the application of this sub-
section shall be in order in either House, nor shall it be 
in order in either House for the Presiding Officer to enter-
tain a request to suspend the application of this subsection 
by unanimous consent. 
(e) PERIOD FOR COMMITTEE AND FLOOR CONSIDER-
ATION.— 
(1) Except as provided in subsection (e)(2), if 
the committee or committees of either House to 
which an implementing bill or approval resolution 
has been referred have not reported it at the close 
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122 
of the 45th day after its introduction, such com-
mittee or committees shall be automatically dis-
charged from further consideration of the bill or res-
olution and it shall be placed on the appropriate cal-
endar. A vote on final passage of the bill or resolu-
tion shall be taken in each House on or before the 
close of the 15th day after the bill or resolution is 
reported by the committee or committees of that 
House to which it was referred, or after such com-
mittee or committees have been discharged from fur-
ther consideration of the bill or resolution. If prior 
to the passage by one House of an implementing bill 
or approval resolution of that House, that House re-
ceives the same implementing bill or approval resolu-
tion from the other House, then— 
(A) the procedure in that House shall be 
the same as if no implementation bill or ap-
proval resolution had been received from the 
other House; but 
(B) the vote on final passage shall be on 
the implementing bill or approval resolution of 
the other House. 
(2) For purposes of computing a number of 
days in either House as provided for in subsection 
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plementation bill or approval resolution is not in 
order. 
SEC. 312. CONTRACTING AND NUCLEAR WASTE FUND. 
Section 302 of the Nuclear Waste Policy Act of 1982 
(42 U.S.C. 10222) is amended— 
(1) in subsection (a)(1), by adding at the end 
the following: ‘‘For any civilian nuclear power reac-
tor a license application for which is filed with the 
Commission, pursuant to its authority under section 
103 or 104 of the Atomic Energy Act of 1954, after 
the date of enactment of this Act, contracts entered 
into under this section shall— 
‘‘(A) except as provided in subsections 
302(a)(1)(B), (C), (D), and (E), below, be gen-
erally consistent with the terms and conditions 
of the ‘Standard Contract for Disposal of Spent 
Nuclear Fuel and/or High-Level Radioactive 
Waste,’ as codified at 10 C.F.R. Part 961 and 
in effect on January 1, 2007; 
‘‘(B) provide for the taking of title to, and 
for the Secretary to dispose of, the high-level 
waste or spent nuclear fuel involved beginning 
no later than 15 years following the start of 
commercial operation; 
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‘‘(C) contain no provisions providing for 
adjustment of the 1.0 mil per kilowatt-hour fee 
established by paragraph (2); 
‘‘(D) be entered into no later than 60 days 
following the docketing of the license applica-
tion by the Commission, or the date of enact-
ment of this Act, whichever is later; and 
‘‘(E) provide that, on a schedule consistent 
with the Secretary’s acceptance of spent nuclear 
fuel from each civilian nuclear power reactor or 
site, and completed not later than the Sec-
retary’s completing the acceptance of all spent 
nuclear fuel from that commercial nuclear 
power reactor or site, the Secretary shall accept 
from each such reactor or site, all low-level ra-
dioactive waste defined in section 3(b)(1)(D) of 
the Low-level Radioactive Waste Policy Act, as 
amended, 42 U.S.C. 2021c(b)(1)(D).’’; and 
(2) in subsection (a)(4), by striking all after 
‘‘herein.’’ in the second sentence; 
(3) in subsection (a)(6), by adding at the end 
the following: ‘‘Further, the Secretary shall offer to 
settle any actions pending on the date of enactment 
of this Act for damages resulting from failure to 
commence accepting spent nuclear fuel or high-level 
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radioactive waste on or before January 31, 1998. 
Each offer to settle shall provide for the payment of 
$150 to the other party to a contract for disposal of 
spent nuclear fuel and high-level radioactive waste 
for each kilogram of spent nuclear fuel which such 
party was or shall be entitled to deliver to the De-
partment in a particular year, based on the following 
aggregate acceptance rates: 400 MTU for 1998; 600 
MTU for 1999; 1,200 MTU for 2000; 2,000 MTU 
for 2001; and 3,000 MTU for 2002 and thereafter; 
provided that the Secretary shall adjust the payment 
amount per kilogram of spent nuclear fuel under 
this subsection (a)(6) annually according to the most 
recent Producer Price Index published by the De-
partment of Labor. Such aggregate acceptance rates 
shall be allocated among parties to contracts with 
the United States based upon the age of spent nu-
clear fuel, as measured by the date of the discharge 
of such spent nuclear fuel from the civilian nuclear 
power reactor. Such offer to settle also shall include 
an annual payment to be determined by the Sec-
retary to any such party where a civilian nuclear 
power reactor has been decommissioned, except for 
those portions of the facility that cannot be decom-
missioned until removal of spent nuclear fuel and 
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129 
high-level radioactive waste. The Secretary also shall 
offer like compensation to parties to contracts en-
tered into pursuant to section 302 of the Nuclear 
Waste Policy Act of 1982 (42 U.S.C. 10222) who 
brought actions for damages prior to the date of en-
actment of this Act, but which were no longer pend-
ing as of said date, provided that such compensation 
shall be reduced by the amount of any settlement or 
judgment received by such party.’’; and 
(4) in subsection (d), by adding at the end the 
following: ‘‘No amount may be expended by the Sec-
retary from the Waste Fund to carry out research 
and development activities on advanced nuclear fuel 
cycle technologies.’’. 
SEC. 313. CONFIDENCE IN AVAILABILITY OF WASTE DIS-
POSAL. 
(a) CONGRESSIONAL DETERMINATION.—The Con-
gress finds that— 
(1) there is reasonable assurance that high-level 
radioactive waste and spent nuclear fuel generated 
in reactors licensed by the Nuclear Regulatory Com-
mission in the past, currently, or in the future will 
be managed in a safe manner without significant en-
vironmental impact until capacity for ultimate dis-
posal is available; and 
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130 
(2) the Federal Government is responsible and 
has established a policy for the ultimate safe and en-
vironmentally sound disposal of such high-level ra-
dioactive waste and spent nuclear fuel. 
(b) 
REGULATORY
CONSIDERATION.—Notwith-
standing any other provision of law, for the period fol-
lowing the licensed operation of a civilian nuclear power 
reactor or any facility for the treatment or storage of 
spent nuclear fuel or high-level radioactive waste, no con-
sideration of the public health and safety, common defense 
and security, or environmental impacts of the storage of 
high-level radioactive waste and spent nuclear fuel gen-
erate d in reactors licensed by the Nuclear Regulatory 
Commission in the past, currently, or in the future, is re-
quired by the Department of Energy or the Nuclear Regu-
latory Commission in connection with the development, 
construction, and operation of, or any permit, license, li-
cense amendment, or siting approval for, a civilian nuclear 
power reactor or any facility for the treatment or storage 
of spent nuclear fuel or high-level radioactive waste. Noth-
ing in this section shall affect the Department of Energy’s 
and Nuclear Regulatory Commission’s obligation to con-
sider the public health and safety, common defense and 
security, and environmental impacts of storage during the 
period of licensed operation of a civilian nuclear power re-
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131 
actor or facility for the treatment or storage of spent nu-
clear fuel or high-level radioactive waste. 
TITLE IV—AMENDMENTS TO THE 
INTERNAL 
REVENUE 
CODE 
OF 1986 
SEC. 401. CREDIT FOR INVESTMENT IN COAL-TO-LIQUID 
FUELS PROJECTS. 
(a) IN GENERAL.—Section 46 of the Internal Rev-
enue Code of 1986 (relating to amount of credit) is 
amended by striking ‘‘and’’ at the end of paragraph (3), 
by striking the period at the end of paragraph (4) and 
inserting ‘‘, and’’, and by adding at the end the following 
new paragraph: 
‘‘(5) the qualifying coal-to-liquid fuels project 
credit.’’. 
(b) AMOUNT OF CREDIT.—Subpart E of part IV of 
subchapter A of chapter 1 of the Internal Revenue Code 
of 1986 (relating to rules for computing investment credit) 
is amended by inserting after section 48B the following 
new section: 
‘‘SEC. 48C. QUALIFYING COAL-TO-LIQUID FUELS PROJECT 
CREDIT. 
‘‘(a) IN GENERAL.—For purposes of section 46, the 
qualifying coal-to-liquid fuels project credit for any taxable 
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133 
‘‘(A) employs either the class of reactions 
known as Fischer-Tropsch or the Schobert 
process to produce at least 10,000 barrels per 
day of transportation grade liquid fuels from a 
feedstock that is primarily domestic coal (in-
cluding any property which allows for the cap-
ture, transportation, or sequestration of by- 
products resulting from such process, including 
carbon emissions), and 
‘‘(B) any portion of the qualified invest-
ment in which is certified under the qualifying 
coal-to-liquid program as eligible for credit 
under this section in an amount (not to exceed 
$200,000,000) determined by the Secretary. 
‘‘(2) COAL.—The term ‘coal’ means any carbon-
ized or semicarbonized matter, including peat. 
‘‘(d) QUALIFYING COAL-TO-LIQUID FUELS PROJECT 
PROGRAM.— 
‘‘(1) IN GENERAL.—The Secretary, in consulta-
tion with the Secretary of Energy, shall establish a 
qualifying coal-to-liquid fuels project program to 
consider and award certifications for qualified in-
vestment eligible for credits under this section to 10 
qualifying coal-to-liquid fuels project sponsors under 
this section. The total qualified investment which 
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134 
may be awarded eligibility for credit under the pro-
gram shall not exceed $2,000,000,000. 
‘‘(2) PERIOD
OF
ISSUANCE.—A certificate of 
eligibility under paragraph (1) may be issued only 
during the 10-fiscal year period beginning on Octo-
ber 1, 2007. 
‘‘(3) SELECTION
CRITERIA.—The Secretary 
shall not make a competitive certification award for 
qualified investment for credit eligibility under this 
section unless the recipient has documented to the 
satisfaction of the Secretary that— 
‘‘(A) the proposal of the award recipient is 
financially viable, 
‘‘(B) the recipient will provide sufficient 
information to the Secretary for the Secretary 
to ensure that the qualified investment is spent 
efficiently and effectively, 
‘‘(C) the fuels identified with respect to the 
gasification technology for such project will 
comprise at least 90 percent of the fuels re-
quired by the project for the production of 
transportation grade liquid fuels, 
‘‘(D) the award recipient’s project team is 
competent in the planning and construction of 
coal gasification facilities and familiar with op-
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135 
eration of either the Fischer-Tropsch process or 
the Schobert process, with preference given to 
those recipients with experience which dem-
onstrates successful and reliable operations of 
such process, and 
‘‘(E) the award recipient has met other cri-
teria established and published by the Sec-
retary. 
‘‘(e) DENIAL OF DOUBLE BENEFIT.—No deduction 
or other credit shall be allowed with respect to the basis 
of any property taken into account in determining the 
credit allowed under this section.’’. 
(c) CONFORMING AMENDMENTS.— 
(1) Section 49(a)(1)(C) of the Internal Revenue 
Code of 1986 is amended by striking ‘‘and’’ at the 
end of clause (iii), by striking the period at the end 
of clause (iv) and inserting ‘‘, and’’, and by adding 
after clause (iv) the following new clause: 
‘‘(v) the basis of any property which 
is part of a qualifying coal-to-liquid fuels 
project under section 48C.’’. 
(2) The table of sections for subpart E of part 
IV of subchapter A of chapter 1 of such Code is 
amended by inserting after the item relating to sec-
tion 48B the following new item: 
‘‘Sec. 48C. Qualifying coal-to-liquid fuels project credit.’’. 
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136 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to periods after the date of the 
enactment of this Act, under rules similar to the rules of 
section 48(m) of the Internal Revenue Code of 1986 (as 
in effect on the day before the date of the enactment of 
the Revenue Reconciliation Act of 1990). 
SEC. 402. TEMPORARY EXPENSING FOR EQUIPMENT USED 
IN COAL-TO-LIQUID FUELS PROCESS. 
(a) IN GENERAL.—Part VI of subchapter B of chap-
ter 1 of the Internal Revenue Code of 1986 is amended 
by inserting after section 179E the following new section: 
‘‘SEC. 179F. ELECTION TO EXPENSE CERTAIN COAL-TO-LIQ-
UID FUELS FACILITIES. 
‘‘(a) TREATMENT AS EXPENSES.—A taxpayer may 
elect to treat the cost of any qualified coal-to-liquid fuels 
process property as an expense which is not chargeable 
to capital account. Any cost so treated shall be allowed 
as a deduction for the taxable year in which the expense 
is incurred. 
‘‘(b) ELECTION.— 
‘‘(1) IN GENERAL.—An election under this sec-
tion for any taxable year shall be made on the tax-
payer’s return of the tax imposed by this chapter for 
the taxable year. Such election shall be made in such 
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137 
manner as the Secretary may by regulations pre-
scribe. 
‘‘(2) ELECTION
IRREVOCABLE.—Any election 
made under this section may not be revoked except 
with the consent of the Secretary. 
‘‘(c) QUALIFIED COAL-TO-LIQUID FUELS PROCESS 
PROPERTY.—The term ‘qualified coal-to-liquid fuels proc-
ess property’ means any property located in the United 
States— 
‘‘(1) which employs the Fischer-Tropsch process 
or the Schobert process to produce transportation 
grade liquid fuels from a feedstock that is primarily 
domestic coal (including any property which allows 
for the capture, transportation, or sequestration of 
by-products resulting from such process, including 
carbon emissions), 
‘‘(2) the original use of which commences with 
the taxpayer, 
‘‘(3) the construction of which— 
‘‘(A) except as provided in subparagraph 
(B), is subject to a binding construction con-
tract entered into after the date of the enact-
ment of this section and before January 1, 
2011, but only if there was no written binding 
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construction contract entered into on or before 
such date of enactment, or 
‘‘(B) in the case of self-constructed prop-
erty, began after the date of the enactment of 
this section and before January 1, 2011, and 
‘‘(4) which is placed in service by the taxpayer 
after the date of the enactment of this section and 
before January 1, 2016. 
‘‘(d) ELECTION TO ALLOCATE DEDUCTION TO COOP-
ERATIVE OWNER.—If— 
‘‘(1) a taxpayer to which subsection (a) applies 
is an organization to which part I of subchapter T 
applies, and 
‘‘(2) one or more persons directly holding an 
ownership interest in the taxpayer are organizations 
to which part I of subchapter T apply, 
the taxpayer may elect to allocate all or a portion of the 
deduction allowable under subsection (a) to such persons. 
Such allocation shall be equal to the person’s ratable share 
of the total amount allocated, determined on the basis of 
the person’s ownership interest in the taxpayer. The tax-
able income of the taxpayer shall not be reduced under 
section 1382 by reason of any amount to which the pre-
ceding sentence applies. 
‘‘(e) BASIS REDUCTION.— 
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139 
‘‘(1) IN GENERAL.—For purposes of this title, 
if a deduction is allowed under this section with re-
spect to any qualified coal-to-liquid fuels process 
property, the basis of such property shall be reduced 
by the amount of the deduction so allowed. 
‘‘(2) ORDINARY
INCOME
RECAPTURE.—For 
purposes of section 1245, the amount of the deduc-
tion allowable under subsection (a) with respect to 
any property which is of a character subject to the 
allowance for depreciation shall be treated as a de-
duction allowed for depreciation under section 167. 
‘‘(f) APPLICATION WITH OTHER DEDUCTIONS AND 
CREDITS.— 
‘‘(1) OTHER DEDUCTIONS.—No deduction shall 
be allowed under any other provision of this chapter 
with respect to any expenditure with respect to 
which a deduction is allowed under subsection (a) to 
the taxpayer. 
‘‘(2) CREDITS.—No credit shall be allowed 
under section 38 with respect to any amount for 
which a deduction is allowed under subsection (a). 
‘‘(g) REPORTING.—No deduction shall be allowed 
under subsection (a) to any taxpayer for any taxable year 
unless such taxpayer files with the Secretary a report con-
taining such information with respect to the operation of 
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140 
the property of the taxpayer as the Secretary shall re-
quire.’’. 
(b) CONFORMING AMENDMENTS.— 
(1) Section 1016(a) of the Internal Revenue 
Code of 1986 is amended by striking ‘‘and’’ at the 
end of paragraph (36), by striking the period at the 
end of paragraph (37) and inserting ‘‘, and’’, and by 
adding at the end the following new paragraph: 
‘‘(38) to the extent provided in section 
179F(e)(1).’’. 
(2) Section 1245(a) of such Code is amended 
by inserting ‘‘179F,’’ after ‘‘179D,’’ both places it 
appears in paragraphs (2)(C) and (3)(C). 
(3) Section 263(a)(1) of such Code is amended 
by striking ‘‘or’’ at the end of subparagraph (J), by 
striking the period at the end of subparagraph (K) 
and inserting ‘‘, or’’, and by inserting after subpara-
graph (K) the following new subparagraph: 
‘‘(L) expenditures for which a deduction is 
allowed under section 179F.’’. 
(4) Section 312(k)(3)(B) of such Code is 
amended by striking ‘‘or 179E’’ each place it ap-
pears in the heading and text and inserting ‘‘179E, 
or 179F’’. 
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141 
(5) The table of sections for part VI of sub-
chapter B of chapter 1 of such Code is amended by 
inserting after the item relating to section 179E the 
following new item: 
‘‘Sec. 179F. Election to expense certain coal-to-liquid fuels facilities.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to properties placed in service after 
the date of the enactment of this Act. 
SEC. 403. EXTENSION OF ALTERNATIVE FUEL CREDIT FOR 
FUEL DERIVED FROM COAL THROUGH THE 
FISCHER-TROPSCH 
PROCESS 
OR 
THE 
SCHOBERT PROCESS. 
(a) ALTERNATIVE FUEL CREDIT.—Paragraph (4) of 
section 6426(d) of the Internal Revenue Code of 1986 is 
amended to read as follows: 
‘‘(4) TERMINATION.—This subsection shall not 
apply to— 
‘‘(A) any sale or use involving liquid fuel 
derived from a feedstock that is primarily do-
mestic coal (including peat) through the Fisch-
er-Tropsch process or the Schobert process for 
any period after September 30, 2020, 
‘‘(B) any sale or use involving liquified hy-
drogen for any period after September 30, 
2014, and 
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142 
‘‘(C) any other sale or use for any period 
after September 30, 2009.’’. 
(b) PAYMENTS.— 
(1) IN
GENERAL.—Paragraph (5) of section 
6427(e) of the Internal Revenue Code of 1986 is 
amended by striking ‘‘and’’ and the end of subpara-
graph (C), by striking the period at the end of sub-
paragraph (D) and inserting ‘‘, and’’, and by adding 
at the end the following new subparagraph: 
‘‘(E) any alternative fuel or alternative fuel 
mixture (as so defined) involving liquid fuel de-
rived from coal (including peat) through the 
Fischer-Tropsch process or the Schobert proc-
ess sold or used after September 30, 2020.’’. 
(2) 
CONFORMING
AMENDMENT.—Section 
6427(e)(5)(C) of such Code is amended by striking 
‘‘subparagraph (D)’’ and inserting ‘‘subparagraphs 
(D) and (E)’’. 
Æ 
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