S.Amdt. 5096

1. Adds TITLE __--NUCLEAR ENERGY wherever appropriate

   Adds a title

   Inserted: TITLE __--NUCLEAR ENERGY

   Inserted: Subtitle A--Financial Incentives SEC. __01. INVESTMENT TAX CREDIT FOR NUCLEAR POWER FACILITIES.

   Inserted: (a) New Credit for Nuclear Power Facilities.--Section 46 of the Internal Revenue Code of 1986 is amended--

   Inserted: (1) by striking "and" at the end of paragraph (3);

   Inserted: (2) by striking the period at the end of paragraph (4) and inserting "; and"; and

   Inserted: (3) by inserting after paragraph (4) the following new paragraph:

   Inserted: "(5) the nuclear power facility construction credit.".

   Inserted: (b) Nuclear Power Facility Construction Credit.--Subpart E of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after section 48B the following new section:

   Inserted: "SEC. 48C. NUCLEAR POWER FACILITY CONSTRUCTION CREDIT.

   Inserted: "(a) In General.--For purposes of section 46, the nuclear power facility construction credit for any taxable year is 10 percent of the qualified nuclear power facility expenditures with respect to a qualified nuclear power facility.

   Inserted: "(b) When Expenditures Taken Into Account.--

   Inserted: "(1) In general.--Qualified nuclear power facility expenditures shall be taken into account for the taxable year in which the qualified nuclear power facility is placed in service.

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   Inserted: "(2) Coordination with subsection (c).--The amount which would (but for this paragraph) be taken into account under paragraph (1) with respect to any qualified nuclear power facility shall be reduced (but not below zero) by any amount of qualified nuclear power facility expenditures taken into account under subsection (c) by the taxpayer or a predecessor of the taxpayer, to the extent any amount so taken into account under subsection (c) has not been required to be recaptured under section 50(a).

   Inserted: "(c) Progress Expenditures.--

   Inserted: "(1) In general.--A taxpayer may elect to take into account qualified nuclear power facility expenditures--

   Inserted: "(A) Self-constructed property.--In the case of a qualified nuclear power facility which is a self-constructed facility, no earlier than the taxable year for which such expenditures are properly chargeable to capital account with respect to such facility, and

   Inserted: "(B) Acquired facility.--In the case of a qualified nuclear facility which is not self-constructed property, no earlier than the taxable year in which such expenditures are paid.

   Inserted: "(2) Special rules for applying paragraph (1).--For purposes of paragraph (1)--

   Inserted: "(A) Component parts, etc.--Notwithstanding that a qualified nuclear power facility is a self-constructed facility, property described in paragraph (3)(B) shall be taken into account in accordance with paragraph (1)(B), and such amounts shall not be included in determining qualified nuclear power facility expenditures under paragraph (1)(A).

   Inserted: "(B) Certain borrowing disregarded.--Any amount borrowed directly or indirectly by the taxpayer on a nonrecourse basis from the person constructing the facility for the taxpayer shall not be treated as an amount expended for such facility.

   Inserted: "(C) Limitation for facilities or components which are not self-constructed.--

   Inserted: "(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 excess of--

   Inserted: "(I) the product of the overall cost to the taxpayer of the facility or component of a facility, multiplied by the percentage of completion of the facility or component of a facility, less

   Inserted: "(II) the amount taken into account under paragraph (1)(B) for all prior taxable years as to such facility or component of a facility.

   Inserted: "(ii) Carryover of certain amounts.--In the case of a facility or component of a facility which is not self-constructed, if for the taxable year the amount which (but for clause (i)) would have been taken into account under paragraph (1)(B) exceeds the amount allowed by clause (i), then the amount of such excess shall increase the amount taken into account under paragraph (1)(B) for the succeeding taxable year without regard to this paragraph.

   Inserted: "(D) Determination of percentage of completion.--The determination under subparagraph (C) of the portion of the overall cost to the taxpayer of the construction which is properly attributable to construction completed during any taxable year shall be made on the basis of engineering or architectural estimates or on the basis of cost accounting records, using information available at the close of the taxable year in which the credit is being claimed.

   Inserted: "(E) Determination of overall cost.--The determination under subparagraph (C) of the overall cost to the taxpayer of the construction of a facility shall be made on the basis of engineering or architectural estimates or on the basis of cost accounting records, using information available at the close of the taxable year in which the credit is being claimed.

   Inserted: "(F) No progress expenditures for property for year placed in service, etc.--In the case of any qualified nuclear facility, no qualified nuclear facility expenditures shall be taken into account under this subsection for the earlier of--

   Inserted: "(i) the taxable year in which the facility is placed in service, or

   Inserted: "(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.

   Inserted: "(3) Self-constructed.--For purposes of this subsection--

   Inserted: "(A) In general.--The term 'self-constructed facility' means any facility if, at the close of the first taxable year to which the election in this subsection applies, it is reasonable to believe that more than 80 percent of the qualified nuclear facility expenditures for such facility will be made directly by the taxpayer.

   Inserted: "(B) Treatment of components.--A component of a facility shall be treated as not self-constructed if, at the close of the first taxable year in which expenditures for the component are paid, it is reasonable to believe that the cost of the component is at least 5 percent of the expected cost of the facility.

   Inserted: "(4) Election.--An election shall be made under this subsection for a qualified nuclear power facility by claiming the nuclear power facility construction credit for expenditures described in paragraph (1) on the taxpayer's return of the tax imposed by this chapter for the taxable year. Such an election shall apply to the taxable year for which made and all subsequent taxable years. Such an election, once made, may be revoked only with the consent of the Secretary.

   Inserted: "(d) Definitions and Special Rules.--For purposes of this section--

   Inserted: "(1) Qualified nuclear power facility.--The term 'qualified nuclear power facility' means an advanced nuclear facility (as defined in section 45J(d)(2))--

   Inserted: "(A) which, when placed in service, will use nuclear power to produce electricity,

   Inserted: "(B) the construction of which is approved by the Nuclear Regulatory Commission on or before December 31, 2013, and

   Inserted: "(C) which is placed in service before January 1, 2021. Such term shall not include any property which is part of a facility the production from which is allowed as a credit under section 45 for the taxable year or any prior taxable year.

   Inserted: "(2) Qualified nuclear power facility expenditures.--

   Inserted: "(A) In general.--The term 'qualified nuclear power facility expenditures' means any amount paid, accrued, or properly chargeable to capital account--

   Inserted: "(i) with respect to a qualified nuclear power facility,

   Inserted: "(ii) for which depreciation will be allowable under section 168 once the facility is placed in service, and

   Inserted: "(iii) which is incurred before the qualified nuclear power facility is placed in service or in connection with the placement of such facility in service.

   Inserted: "(B) Pre-effective date expenditures.--Qualified nuclear power facility expenditures do not include any expenditures incurred by the taxpayer before January 1, 2008, to the extent that, at the close of the first taxable year to which the election in subsection (c) applies, it is reasonable to believe that such expenditures will constitute more than 20 percent of the total qualified nuclear power facility expenditures.

   Inserted: "(3) Delays and suspension of construction.--

   Inserted: "(A) In general.--Except for sales or dispositions between entities which meet the ownership test in section 1504(a), for purposes of applying this section and section 50, a nuclear power facility that is under construction shall cease, with respect to the taxpayer, to be a qualified nuclear power facility as of the date on which the taxpayer sells, disposes of, or cancels, abandons, or otherwise terminates the construction of, the facility.

   Inserted: "(B) Resumption of construction.--If a nuclear power facility that is under construction ceases, with respect to the taxpayer, to be a qualified nuclear power facility by reason of subparagraph (A) and work is subsequently resumed on the construction of such facility the qualified nuclear power facility expenditures shall be determined without regard to any delay or temporary termination of construction of the facility.

   Inserted: "(e) Application of Other Rules.--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 to the extent not inconsistent herewith.".

   Inserted: (c) Provisions Relating to Credit Recapture.--

   Inserted: (1) Progress expenditure recapture rules.--

   Inserted: (A) Basic rules.--Subparagraph (A) of section 50(a)(2) of the Internal Revenue Code of 1986 is amended to read as follows:

   Inserted: "(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 determined under this subpart with respect to such building or facility.".

   Inserted: (B) Amendment to excess credit recapture rule.--Subparagraph (B) of section 50(a)(2) of such Code is amended by--

   Inserted: (i) inserting "or paragraph (2) of section 48C(b)" after "paragraph (2) of section 47(b)";

   Inserted: (ii) inserting "or section 48C(b)(1)" after "section 47(b)(1)"; and

   Inserted: (iii) inserting "or facility" after "building".

   Inserted: (d) Application of Section 49.--Subparagraph (C) of section 49(a)(1) of the Internal Revenue Code of 1986 is amended--

   Inserted: (1) by striking "and" at the end of clause (iii);

   Inserted: (2) by striking the period at the end of clause (iv) and inserting ", and"; and

   Inserted: (3) by inserting after clause (iv) the following new clause:

   Inserted: "(v) the basis of any property which is part of a qualified nuclear power facility under section 48C.".

   Inserted: (e) Denial of Double Benefit.--Subsection (c) of section 45J of the Internal Revenue Code of 1986 (relating to other limitations) is amended by adding at the end the following new paragraph:

   Inserted: "(3) Credit reduced for grants, tax-exempt bonds, subsidized energy financing, and other credits.--The amount of the credit determined under subsection (a) with respect to any facility for any taxable year (determined after the application of paragraphs (1) and (2)) shall be reduced by the amount which is the product of the amount so determined for such year and the lesser of \1/2\ or a fraction--

   Inserted: "(A) the numerator of which is the sum, for the taxable year and all prior taxable years, of--

   Inserted: "(i) grants provided by the United States, a State, or a political subdivision of a State for use in connection with the project,

   Inserted: "(ii) proceeds of an issue of State or local government obligations used to provide financing for the project the interest on which is exempt from tax under section 103,

   Inserted: "(iii) the aggregate amount of subsidized energy financing provided (directly or indirectly) under a Federal, State, or local program provided in connection with the project, and

   Inserted: "(iv) the amount of any other credit allowable with respect to any property which is part of the facility, and

   Inserted: "(B) the denominator of which is the aggregate amount of additions to the capital account for the project for the taxable year and all prior taxable years. The amounts under the preceding sentence for any taxable year shall be determined as of the close of the taxable year.".

   Inserted: (f) Clerical Amendment.--The table of sections for subpart E of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after the item relating to section 48B the following new item:

   Inserted: "Sec. 48C. Nuclear power facility construction credit.".

   Inserted: (g) Effective Date.--The amendments made by this section shall apply to expenditures incurred and property placed in service in taxable years beginning after the date of enactment of this Act.

   Inserted: SEC. __02. 5-YEAR ACCELERATED DEPRECIATION FOR NEW NUCLEAR POWER FACILITIES.

   Inserted: (a) In General.--Subparagraph (B) of section 168(e)(3) of the Internal Revenue Code of 1986 (relating to 5-year property) is amended--

   Inserted: (1) by striking "and" at the end of clause (v);

   Inserted: (2) by striking the period at the end of clause (vi) and inserting ", and"; and

   Inserted: (3) by adding at the end the following new clause:

   Inserted: "(vii) any qualified nuclear power facility described in paragraph (1) of section 48C(d) (without regard to the last sentence thereof) the original use of which commences with the taxpayer.".

   Inserted: (b) Conforming Amendment.--Section 168(e)(3)(E)(vii) of the Internal Revenue Code of 1986 is amended by inserting "and not described in subparagraph (B)(vii) of this paragraph" after "section 1245(a)(3)".

   Inserted: (c) Effective Date.--The amendments made by this section shall apply to property placed in service in taxable years beginning after the date of enactment of this Act.

   Inserted: SEC. __03. CREDIT FOR QUALIFYING NUCLEAR POWER MANUFACTURING.

   Inserted: (a) In General.--Subpart E of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986, as amended by this Act, is amended by inserting after section 48C the following new section:

   Inserted: "SEC. 48D. QUALIFYING NUCLEAR POWER MANUFACTURING CREDIT.

   Inserted: "(a) Allowance of Credit.--For purposes of section 46, the qualifying nuclear power manufacturing credit for any taxable year is an amount equal to 20 percent of the qualified investment for such taxable year.

   Inserted: "(b) Qualified Investment.--

   Inserted: "(1) In general.--For purposes of subsection (a), the qualified investment for any taxable year is the basis of property placed in service by the taxpayer during such taxable year which is certified under subsection (c) and--

   Inserted: "(A) which is either part of a qualifying nuclear power manufacturing project or is qualifying nuclear power manufacturing equipment,

   Inserted: "(B)(i) the construction, reconstruction, or erection of which is completed by the taxpayer, or

   Inserted: "(ii) which is acquired by the taxpayer if the original use of such property commences with the taxpayer,

   Inserted: "(C) with respect to which depreciation (or amortization in lieu of depreciation) is allowable, and

   Inserted: "(D) which is placed in service on or before December 31, 2015.

   Inserted: "(2) Special rule for certain subsidized property.--Rules similar to the rules of section 48(a)(4) shall apply for purposes of this section.

   Inserted: "(3) Certain qualified progress expenditures rules made applicable.--Rules similar to the rules of subsections (c)(4) and (d) of section 46 (as in effect on the day before the enactment of the Revenue Reconciliation Act of 1990) shall apply for purposes of this section.

   Inserted: "(c) Qualifying Nuclear Power Manufacturing Project and Qualifying Nuclear Power Manufacturing Equipment Certification.--Not later than 180 days after the date of the enactment of this section, the Secretary, in consultation with the Secretary of Energy, shall establish a program to consider and award certifications for property eligible for credits under this section as part of either a qualifying nuclear power manufacturing project or as qualifying nuclear power manufacturing equipment. The total amounts of credit that may be allocated under the program shall not exceed $100,000,000.

   Inserted: "(d) Definitions.--For purposes of this section--

   Inserted: "(1) Qualifying nuclear power manufacturing project.--The term 'qualifying nuclear power manufacturing project' means any project which is designed primarily to enable the taxpayer to produce or test equipment necessary for the construction or operation of a nuclear power plant.

   Inserted: "(2) Qualifying nuclear power manufacturing equipment.--The term 'qualifying nuclear power manufacturing equipment' means machine tools and other similar equipment, including computers and other peripheral equipment, acquired or constructed primarily to enable the taxpayer to produce or test equipment necessary for the construction or operation of a nuclear power plant.

   Inserted: "(3) Project.--The term 'project' includes any building constructed to house qualifying nuclear power manufacturing equipment.".

   Inserted: (b) Conforming Amendments.--

   Inserted: (1) Additional investment credit.--Section 46 of the Internal Revenue Code of 1986, as amended by this Act, is amended--

   Inserted: (A) by striking "and" at the end of paragraph (4);

   Inserted: (B) by striking the period at the end of paragraph (5) and inserting ", and"; and

   Inserted: (C) by inserting after paragraph (5) the following new paragraph:

   Inserted: "(6) the qualifying nuclear power manufacturing credit.".

   Inserted: (2) Application of section 49.--Subparagraph (C) of section 49(a)(1) of such Code, as amended by this Act, is amended--

   Inserted: (A) by striking "and" at the end of clause (iv);

   Inserted: (B) by striking the period at the end of clause (v) and inserting ", and"; and

   Inserted: (C) by inserting after clause (v) the following new clause:

   Inserted: "(vi) the basis of any property which is part of a qualifying nuclear power manufacturing project or qualifying nuclear power manufacturing equipment under section 48D.".

   Inserted: (c) Clerical Amendment.--The table of sections for subpart E of part IV of subchapter A of chapter 1 of such Code, as amended by this Act, is amended by inserting after the item relating to section 48C the following new item:

   Inserted: "Sec. 48D. Qualifying nuclear power manufacturing credit.".

   Inserted: (d) Effective Date.--The amendments made by this section shall apply to property--

   Inserted: (1) the construction, reconstruction, or erection of which begins after the date of enactment of this Act; or

   Inserted: (2) which is acquired by the taxpayer on or after such date and not pursuant to a binding contract which was in effect on the day prior to such date.

   Inserted: SEC. __04. STANDBY SUPPORT FOR CERTAIN NUCLEAR PLANT DELAYS.

   Inserted: (a) Definitions.--Section 638(a) of the Energy Policy Act of 2005 (42 U.S.C. 16014(a)) is amended--

   Inserted: (1) by redesignating paragraph (4) as paragraph (7); and

   Inserted: (2) by inserting after paragraph (3) the following:

   Inserted: "(4) Full power operation.--The term 'full power operation', with respect to a facility, means the earlier of--

   Inserted: "(A) the commercial operation date (or the equivalent under the terms of the financing documents for the facility); and

   Inserted: "(B) the date on which the facility achieves operation at an average nameplate capacity of 50 percent or more during any consecutive 30-day period after the completion of startup testing for the facility.

   Inserted: "(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 contract, including costs of demobilization and remobilization, increased costs of equipment, materials and labor due to delay (including idle time), increased general and administrative costs, and escalation costs for completing construction.

   Inserted: "(6) Litigation.--The term 'litigation' means any--

   Inserted: "(A) adjudication in Federal, State, local, or tribal court; and

   Inserted: "(B) any administrative proceeding or hearing before a Federal, State, local, or tribal agency or administrative entity.".

   Inserted: (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 following:

   Inserted: "(1) Contracts.--

   Inserted: "(A) In general.--The Secretary may enter into contracts under this section with sponsors of an advanced nuclear facility that cover at any 1 time a total of not more than 12 reactors, which shall consist of not less than 2 nor more than 4 different reactor designs, in accordance with paragraph (2).

   Inserted: "(B) Replacement contracts.--If any contract entered into under this section terminates or expires without a claim being paid by the Secretary under the contract, the Secretary may enter into a new contract under this section in replacement of the contract.".

   Inserted: (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 following:

   Inserted: "(2) Coverage.--In the case of reactors that receive combined licenses and on which construction is commenced, the Secretary shall pay--

   Inserted: "(A) 100 percent of the covered costs of delay that occur after the initial 30-day period of covered delay; but

   Inserted: "(B) not more than $500,000,000 per contract.

   Inserted: "(3) Covered debt obligations.--Debt obligations covered under subparagraph (A) of paragraph (5) shall include debt obligations incurred to pay increased project costs.".

   Inserted: (d) Dispute Resolution.--Section 638 of the Energy Policy Act of 2005 (42 U.S.C. 16014) is amended--

   Inserted: (1) by redesignating subsections (f) through (h) as subsections (g) through (i), respectively; and

   Inserted: (2) by inserting after subsection (e) the following:

   Inserted: "(f) Dispute Resolution.--

   Inserted: "(1) In general.--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, in accordance with the applicable Commercial Arbitration Rules of the American Arbitration Association.

   Inserted: "(2) Treatment of decision.--A decision by an arbitrator shall be final and binding, and the United district court for Washington, DC, or the district in which the project is located shall have jurisdiction to enter judgment on the decision.".

   Inserted: SEC. __05. INCENTIVES FOR INNOVATIVE TECHNOLOGIES.

   Inserted: (a) Definition of Project Cost.--Section 1701(1) of the Energy Policy Act of 2005 (42 U.S.C. 16511(1)) is amended by adding at the end the following:

   Inserted: "(6) Project cost.--The term 'project cost' means all costs associated with the development, planning, design, engineering, permitting and licensing, construction, commissioning, startup, shakedown, and financing of a facility, including reasonable escalation and contingencies, the cost of and fees for the guarantee, reasonably required reserve funds, initial working capital, and interest during construction.".

   Inserted: (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 following:

   Inserted: "(b) Specific Appropriation or Contribution.--

   Inserted: "(1) In general.--No guarantee shall be made unless--

   Inserted: "(A) sufficient amounts have been appropriated to cover the cost of the guarantee;

   Inserted: "(B) the Secretary has--

   Inserted: "(i) received from the borrower payment in full for the cost of the obligation; and

   Inserted: "(ii) deposited the payment into the Treasury; or

   Inserted: "(C) any combination of subparagraphs (A) and (B) that is sufficient to cover the cost of the obligation.

   Inserted: "(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).

   Inserted: "(c) Amount.--

   Inserted: "(1) In general.--Subject to paragraph (2), the Secretary shall guarantee--

   Inserted: "(A) 100 percent of the obligation for a facility that is the subject of a guarantee; or

   Inserted: "(B) a lesser amount, if requested by the borrower.

   Inserted: "(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.".

   Inserted: (c) Fees.--Section 1702(h) of the Energy Policy Act of 2005 (42 U.S.C. 16512(h)) is amended by striking paragraph (2) and inserting the following:

   Inserted: "(2) Availability.--Fees collected under this subsection shall--

   Inserted: "(A) be deposited by the Secretary into a special fund in the Treasury to be known as the 'Incentives For Innovative Technologies Fund'; and

   Inserted: "(B) remain available to the Secretary for expenditure, without further appropriation or fiscal year limitation, for administrative expenses incurred in carrying out this title.".

   Inserted: Subtitle B--Other Programs SEC. __11. NUCLEAR POWER 2010 PROGRAM.

   Inserted: Section 952(c) of the Energy Policy Act of 2005 (42 U.S.C. 16272(c)) is amended by adding at the end the following:

   Inserted: "(3) Authorization of appropriations.--There are authorized to be appropriated to the Secretary to carry out the Nuclear Power 2010 Program--

   Inserted: "(A) $159,600,000 for fiscal year 2009;

   Inserted: "(B) $135,600,000 for fiscal year 2010;

   Inserted: "(C) $46,900,000 for fiscal year 2011; and

   Inserted: "(D) $2,200,000 for fiscal year 2012.".

   Inserted: SEC. __12. NEXT GENERATION NUCLEAR PLANT PROJECT MODIFICATIONS.

   Inserted: (a) Project Establishment.--Section 641 of the Energy Policy Act of 2005 (42 U.S.C. 16021) is amended--

   Inserted: (1) in subsection (a)--

   Inserted: (A) by striking the subsection designation and heading and all that follows through "The Secretary" and inserting the following:

   Inserted: "(a) Establishment and Objective.--

   Inserted: "(1) Establishment.--The Secretary"; and

   Inserted: (B) by adding at the end the following:

   Inserted: "(2) Objective.--

   Inserted: "(A) Definition of high-temperature, gas-cooled nuclear energy technology.--In this paragraph, the term 'high-temperature, gas-cooled nuclear energy technology' means any nongreenhouse gas-emitting nuclear energy technology that provides--

   Inserted: "(i) an alternative to the burning of fossil fuels for industrial applications; and

   Inserted: "(ii) process heat to generate, for example, electricity, steam, hydrogen, and oxygen for activities such as--

   Inserted: "(I) petroleum refining;

   Inserted: "(II) petrochemical processes;

   Inserted: "(III) converting coal to synfuels and other hydrocarbon feedstocks; and

   Inserted: "(IV) desalination.

   Inserted: "(B) Description of objective.--The objective of the Project shall be to carry out demonstration projects for the development, licensing, and operation of high-temperature, gas-cooled nuclear energy technologies to support commercialization of those technologies.

   Inserted: "(C) Requirements.--The functional, operational, and performance requirements for high-temperature, gas-cooled nuclear energy technologies shall be determined by the needs of marketplace industrial end-users (such as owners and operators of nuclear energy facilities, petrochemical entities, and petroleum entities), as projected for the 40-year period beginning on the date of enactment of this paragraph."; and

   Inserted: (2) in subsection (b)--

   Inserted: (A) in the matter preceding paragraph (1), by inserting "licensing," after "design,";

   Inserted: (B) in paragraph (1), by striking "942(d)" and inserting "952(d)"; and

   Inserted: (C) by striking paragraph (2) and inserting the following:

   Inserted: "(2) demonstrates the capability of the nuclear energy system to provide high-temperature process heat to produce--

   Inserted: "(A) electricity, steam, and other heat transport fluids; and

   Inserted: "(B) hydrogen and oxygen, separately or in combination.".

   Inserted: (b) Project Management.--Section 642 of the Energy Policy Act of 2005 (42 U.S.C. 16022) is amended to read as follows:

   Inserted: "SEC. 642. PROJECT MANAGEMENT.

   Inserted: "(a) Departmental Management.--

   Inserted: "(1) In general.--The Project shall be managed in the Department by the Office of Nuclear Energy.

   Inserted: "(2) Generation iv nuclear energy systems initiative.--

   Inserted: "(A) In general.--Subject to subparagraph (B), the Project may be carried out in coordination with the Generation IV Nuclear Energy Systems Initiative.

   Inserted: "(B) Requirement.--Regardless of whether the Project is carried out in coordination with the Generation IV Nuclear Energy Systems Initiative under subparagraph (A), the Secretary shall establish a separate budget line-item for the Project.

   Inserted: "(3) Interaction with industry.--Any activity to support the Project by an individual or entity in the private industry shall be carried out pursuant to a competitive cooperative agreement or other assistance agreement (such as a technology investment agreement) between the Department and the industry group established under subsection (c).

   Inserted: "(b) Laboratory Management.--

   Inserted: "(1) In general.--The Idaho National Laboratory shall be the lead National Laboratory for the Project.

   Inserted: "(2) Collaboration.--The Idaho National Laboratory shall collaborate regarding research and development activities with other National Laboratories, institutions of higher education, research institutes, representatives of industry, international organizations, and Federal agencies to support the Project.

   Inserted: "(c) Industry Group.--

   Inserted: "(1) Establishment.--The Secretary shall establish a group of appropriate industrial partners in the private sector to carry out cost-shared activities with the Department to support the Project.

   Inserted: "(2) Cooperative agreement.--

   Inserted: "(A) In general.--The Secretary shall offer to enter into a cooperative agreement or other assistance agreement with the industry group established under paragraph (1) to manage and support the development, licensing, construction, and initial operation of the Project.

   Inserted: "(B) Requirement.--The agreement under subparagraph (A) shall contain a provision under which the industry group may enter into contracts with entities in the public sector for the provision of services and products to that sector that reflect typical commercial practices regarding terms and conditions for risk, accountability, performance, and quality.

   Inserted: "(C) Project management.--

   Inserted: "(i) In general.--The industry group shall use commercial practices and project management processes and tools in carrying out activities to support the Project.

   Inserted: "(ii) Interface requirements.--The requirements for interface between the project management requirements of the Department (including the requirements contained in the document of the Department numbered DOE O 413.3A and entitled 'Program and Project Management for the Acquisition of Capital Assets') and the commercial practices and project management processes and tools described in clause (i) shall be defined in the agreement under subparagraph (A).

   Inserted: "(3) Cost sharing.--Activities of industrial partners funded by the Project shall be cost-shared in accordance with section 988.

   Inserted: "(4) Preference.--Preference in determining the final structure of industrial partnerships under this part shall be given to a structure (including designating as a lead industrial partner an entity incorporated in the United States) that retains United States technological leadership in the Project while maximizing cost sharing opportunities and minimizing Federal funding responsibilities.

   Inserted: "(d) Prototype Plant Siting.--The prototype nuclear reactor and associated plant shall be sited at the Idaho National Laboratory in Idaho.

   Inserted: "(e) Reactor Test Capabilities.--The Project shall use, if appropriate, reactor test capabilities at the Idaho National Laboratory.

   Inserted: "(f) Other Laboratory Capabilities.--The Project may use, if appropriate, facilities at other National Laboratories.".

   Inserted: (c) Project Organization.--Section 643 of the Energy Policy Act of 2005 (42 U.S.C. 16023) is amended--

   Inserted: (1) in subsection (a)(2), by inserting "transport and" before "conversion";

   Inserted: (2) in subsection (b)--

   Inserted: (A) in paragraph (1)--

   Inserted: (i) by striking subparagraph (C); and

   Inserted: (ii) by redesignating subparagraphs (A), (B), and (D) as clauses (i), (ii), and (iii), respectively, and indenting the clauses appropriately;

   Inserted: (B) in paragraph (2)--

   Inserted: (i) in subparagraph (B), by striking ", through a competitive process,";

   Inserted: (ii) in subparagraph (C), by striking "reactor" and inserting "energy system";

   Inserted: (iii) in subparagraph (D), by striking "hydrogen or electricity" and inserting "energy transportation, conversion, and"; and

   Inserted: (iv) by redesignating subparagraphs (A) through (D) as clauses (i) through (iv), respectively, and indenting the clauses appropriately;

   Inserted: (C) by redesignating paragraphs (1) and (2) as subparagraphs (A) and (B), respectively, and indenting the subparagraphs appropriately;

   Inserted: (D) by striking "The Project shall be" and inserting the following:

   Inserted: "(1) In general.--The Project shall be"; and

   Inserted: (E) by adding at the end the following:

   Inserted: "(2) Overlapping phases.--The phases described in paragraph (1) may overlap for the Project or any portion of the Project, as necessary."; and

   Inserted: (3) in subsection (c)--

   Inserted: (A) in paragraph (1)(A), by striking "powerplant" and inserting "power plant";

   Inserted: (B) in paragraph (2), by adding at the end the following:

   Inserted: "(E) Industry group.--The industry group established under section 642(c) may enter into any necessary contracts for services, support, or equipment in carrying out an agreement with the Department."; and

   Inserted: (C) in paragraph (3)--

   Inserted: (i) in the paragraph heading, by striking "research";

   Inserted: (ii) in the matter preceding subparagraph (A), by striking "Research";

   Inserted: (iii) by striking "NERAC" each place it appears and inserting "NEAC";

   Inserted: (iv) in subparagraph (A), by striking clause (i) and inserting the following:

   Inserted: "(i) review program plans for the Project prepared by the Office of Nuclear Energy and all progress under the Project on an ongoing basis; and";

   Inserted: (v) in subparagraph (B), by striking "or appoint" and inserting "by appointing"; and

   Inserted: (vi) in subparagraph (D)--

   Inserted: (I) by striking "On a determination" and inserting the following:

   Inserted: "(i) In general.--On a determination";

   Inserted: (II) in clause (i) (as designated by subclause (I))--

   Inserted: (aa) by striking "subsection (b)(1)" and inserting "subsection (b)(1)(A)"; and

   Inserted: (bb) by striking "subsection (b)(2)" and inserting "subsection (b)(1)(B)"; and

   Inserted: (III) by adding at the end the following:

   Inserted: "(ii) Scope.--The scope of the review conducted under clause (i) shall be in accordance with an applicable cooperative agreement or other assistance agreement (such as a technology investment agreement) between the Secretary and the industry group established under section 642(c).".

   Inserted: (d) Nuclear Regulatory Commission.--Section 644 of the Energy Policy Act of 2005 (42 U.S.C. 16024) is amended--

   Inserted: (1) in subsection (b)--

   Inserted: (A) by redesignating paragraphs (1) through (4) as subparagraphs (A) through (D), respectively, and indenting the subparagraphs appropriately;

   Inserted: (B) by striking "Not later than" and inserting the following:

   Inserted: "(1) In general.--Not later than"; and

   Inserted: (C) by adding at the end the following:

   Inserted: "(2) Requirement.--To the maximum extent practicable, in carrying out subparagraphs (B) and (C) of paragraph (1), the Nuclear Regulatory Commission shall independently review and, as appropriate, use the results of analyses conducted for or by the license applicant."; and

   Inserted: (2) by striking subsection (c) and inserting the following:

   Inserted: "(c) Ongoing Interaction.--The Nuclear Regulatory Commission shall establish a separate program office for advanced reactors--

   Inserted: "(1) to develop and implement regulatory requirements consistent with the safety bases of the type of nuclear reactor developed by the Project, with the specific objective that the requirements shall be applied to follow-on commercialized high-temperature, gas-cooled nuclear reactors;

   Inserted: "(2) to avoid conflicts in the availability of resources with licensing activities for light water reactors;

   Inserted: "(3) to focus and develop resources of the Nuclear Regulatory Commission for the review of advanced reactors;

   Inserted: "(4) to support the effective and timely review of preapplication activities and review of applications to support applicant needs; and

   Inserted: "(5) to provide for the timely development of regulatory requirements, including through the preapplication process, and review of applications for advanced technologies, such as high-temperature, gas-cooled nuclear technology systems.".

   Inserted: (e) Project Timelines and Authorization of Appropriations.--Section 645 of the Energy Policy Act of 2005 (42 U.S.C. 16025) is amended--

   Inserted: (1) by striking subsections (a) and (b) and inserting the following:

   Inserted: "(a) Summary of Agreement.--Not later than December 31, 2009, the Secretary shall submit to Congress a report that contains a summary of each cooperative agreement or other assistance agreement (such as a technology investment agreement) entered into between the Secretary and the industry group under section 642(a)(3), including a description of the means by which the agreement will provide for successful completion of the development, design, licensing, construction, and initial operation and demonstration period of the prototype facility of the Project.

   Inserted: "(b) Overall Project Plan.--

   Inserted: "(1) In general.--Not later than December 31, 2009, the Secretary shall submit to Congress an overall plan for the Project, to be prepared jointly by the Secretary and the industry group established under section 642(c), pursuant to a cooperative agreement or other assistance agreement (such as a technology investment agreement).

   Inserted: "(2) Inclusions.--The plan under paragraph (1) shall include--

   Inserted: "(A) a summary of the schedule for the design, licensing, construction, and initial operation and demonstration period for the nuclear energy system prototype facility and hydrogen production prototype facility of the Project;

   Inserted: "(B) the process by which a specific design for the prototype nuclear energy system facility and hydrogen production facility will be selected;

   Inserted: "(C) the specific licensing strategy for the Project, including--

   Inserted: "(i) resource requirements of the Nuclear Regulatory Commission; and

   Inserted: "(ii) the schedule for the submission of a preapplication, the submission of an application, and application review for the prototype nuclear energy system facility of the Project;

   Inserted: "(D) a summary of the schedule for each major event relating to the Project; and

   Inserted: "(E) a time-based cost and cost-sharing profile to support planning for appropriations."; and

   Inserted: (2) in subsection (d), in the matter preceding paragraph (1), by striking "research and construction activities" and inserting "research and development, design, licensing, construction, and initial operation and demonstration activities".

   Inserted: SEC. __13. NUCLEAR ENERGY WORKFORCE.

   Inserted: Section 1101 of the Energy Policy Act of 2005 (42 U.S.C. 16411) is amended--

   Inserted: (1) in subsection (b)(1)--

   Inserted: (A) in subparagraph (A), by striking "and" at the end;

   Inserted: (B) in subparagraph (B), by striking the period and inserting "; and"; and

   Inserted: (C) by adding at the end the following:

   Inserted: "(C) nuclear utility and nuclear energy product and service industries.";

   Inserted: (2) by redesignating subsection (d) as subsection (e); and

   Inserted: (3) by inserting after subsection (c) the following:

   Inserted: "(d) Workforce Training.--

   Inserted: "(1) In general.--The Secretary of Labor, in cooperation with the Secretary, shall promulgate regulations to implement a program to provide grants to enhance workforce training for any occupation in the workforce of the nuclear utility and nuclear energy products and services industries for which a shortage is identified or predicted in the report under subsection (b)(2).

   Inserted: "(2) Consultation.--In carrying out this subsection, the Secretary of Labor shall consult with representatives of the nuclear utility and nuclear energy products and services industries, including organized labor organizations and multiemployer associations that jointly sponsor apprenticeship programs that provide training for skills needed in those industries.

   Inserted: "(3) Authorization of appropriations.--There are authorized to be appropriated to the Secretary of Labor, working in coordination with the Secretary and the Secretary of Education, $20,000,000 for each of fiscal years 2008 through 2015 to carry out this subsection.".

   Inserted: SEC. __14. INTERAGENCY WORKING GROUP TO PROMOTE DOMESTIC MANUFACTURING BASE FOR NUCLEAR COMPONENTS AND EQUIPMENT.

   Inserted: (a) Purposes.--The purposes of this section are--

   Inserted: (1) to increase the competitiveness of the United States nuclear energy products and services industries;

   Inserted: (2) to identify the stimulus or incentives necessary to cause United States manufacturers of nuclear energy products to expand manufacturing capacity;

   Inserted: (3) to facilitate the export of United States nuclear energy products and services;

   Inserted: (4) to reduce the trade deficit of the United States through the export of United States nuclear energy products and services;

   Inserted: (5) to retain and create nuclear energy manufacturing and related service jobs in the United States;

   Inserted: (6) to integrate the objectives described in paragraphs (1) through (5), in a manner consistent with the interests of the United States, into the foreign policy of the United States; and

   Inserted: (7) to authorize funds for increasing United States capacity to manufacture nuclear energy products and supply nuclear energy services.

   Inserted: (b) Establishment.--

   Inserted: (1) In general.--There is established an interagency working group (referred to in this section as the "Working Group") that, in consultation with representative industry organizations and manufacturers of nuclear energy products, shall make recommendations to coordinate the actions and programs of the Federal Government in order to promote increasing domestic manufacturing capacity and export of domestic nuclear energy products and services.

   Inserted: (2) Composition.--The Working Group shall be composed of--

   Inserted: (A) the Secretary of Energy (or a designee), who shall serve as Chairperson of the Working Group; and

   Inserted: (B) representatives of--

   Inserted: (i) the Department of Energy;

   Inserted: (ii) the Department of Commerce;

   Inserted: (iii) the Department of Defense;

   Inserted: (iv) the Department of Treasury;

   Inserted: (v) the Department of State;

   Inserted: (vi) the Environmental Protection Agency;

   Inserted: (vii) the United States Agency for International Development;

   Inserted: (viii) the Export-Import Bank of the United States;

   Inserted: (ix) the Trade and Development Agency;

   Inserted: (x) the Small Business Administration;

   Inserted: (xi) the Office of the United States Trade Representative; and

   Inserted: (xii) other Federal agencies, as determined by the President.

   Inserted: (c) Duties of Working Group.--The Working Group shall--

   Inserted: (1) not later than 180 days after the date of enactment of this Act, identify the actions necessary to promote the safe development and application in foreign countries of nuclear energy products and services--

   Inserted: (A) to increase electricity generation from nuclear energy sources through development of new generation facilities;

   Inserted: (B) to improve the efficiency, safety, and reliability of existing nuclear generating facilities through modifications; and

   Inserted: (C) enhance the safe treatment, handling, storage, and disposal of used nuclear fuel;

   Inserted: (2) not later than 180 days after the date of enactment of this Act, identify--

   Inserted: (A) mechanisms (including tax stimuli for investment, loans and loan guarantees, and grants) necessary for United States companies to increase--

   Inserted: (i) the capacity of the companies to produce or provide nuclear energy products and services; and

   Inserted: (ii) exports of nuclear energy products and services; and

   Inserted: (B) administrative or legislative initiatives that are necessary --

   Inserted: (i) to encourage United States companies to increase the manufacturing capacity of the companies for nuclear energy products;

   Inserted: (ii) to provide technical and financial assistance and support to small and mid-sized businesses to establish quality assurance programs in accordance with domestic and international nuclear quality assurance code requirements;

   Inserted: (iii) to encourage, through financial incentives, private sector capital investment to expand manufacturing capacity; and

   Inserted: (iv) to provide technical assistance and financial incentives to small and mid-sized businesses to develop the workforce necessary to increase manufacturing capacity and meet domestic and international nuclear quality assurance code requirements;

   Inserted: (3) not later than 270 days after the date of enactment of this Act, submit to Congress a report that describes the findings of the Working Group under paragraphs (1) and (2), including recommendations for new legislative authority, as necessary; and

   Inserted: (4) encourage the agencies represented by membership in the Working Group--

   Inserted: (A) to provide technical training and education for international development personnel and local users in other countries;

   Inserted: (B) to provide financial and technical assistance to nonprofit institutions that support the marketing and export efforts of domestic companies that provide nuclear energy products and services;

   Inserted: (C) to develop nuclear energy projects in foreign countries;

   Inserted: (D) to provide technical assistance and training materials to loan officers of the World Bank, international lending institutions, commercial and energy attaches at embassies of the United States, and other appropriate personnel in order to provide information about nuclear energy products and services to foreign governments or other potential project sponsors;

   Inserted: (E) to support, through financial incentives, private sector efforts to commercialize and export nuclear energy products and services in accordance with the subsidy codes of the World Trade Organization; and

   Inserted: (F) to augment budgets for trade and development programs in order to support prefeasibility or feasibility studies for projects that use nuclear energy products and services.

   Inserted: (d) Personnel and Service Matters.--The Secretary of Energy and the heads of agencies represented by membership in the Working Group shall detail such personnel and furnish such services to the Working Group, with or without reimbursement, as are necessary to carry out the functions of the Working Group.

   Inserted: (e) Authorization of Appropriations.--There is authorized to be appropriated to the Secretary of Energy to carry out this section $20,000,000 for each of fiscal years 2009 through 2012.

   Inserted: SEC. __15. NUCLEAR POWER TECHNOLOGY FUND.

   Inserted: There is established in the Treasury of the United States a fund to be known as the "Nuclear Power Technology Fund" of which funds shall be made available to carry out the purposes of section __16 (relating to spent fuel recycling).

   Inserted: SEC. __16. SPENT FUEL RECYCLING PROGRAM.

   Inserted: (a) Purpose.--It is the policy of the United States to recycle spent nuclear fuel to advance energy independence by maximizing the energy potential of nuclear fuel in a proliferation-resistant manner that reduces the quantity of waste dedicated to a permanent Federal repository.

   Inserted: (b) Spent Fuel Recycling Research and Development Facility.--

   Inserted: (1) In general.--Not later than 1 year after the date of enactment of this Act, the Secretary shall begin construction of a spent fuel recycling research and development facility.

   Inserted: (2) Purpose.--The facility described in paragraph (1) shall serve as the lead site for continuing research and development of advanced nuclear fuel cycles and separation technologies.

   Inserted: (3) Site selection.--In selecting a site for the facility, the Secretary shall give preference to a site that has--

   Inserted: (A) the most technically sound bid;

   Inserted: (B) a demonstrated technical expertise in spent fuel recycling; and

   Inserted: (C) community support.

   Inserted: (c) Contracts.--The Secretary shall use amounts in the Nuclear Power Technology Fund, and such other amounts as are appropriated to carry out this section, to enter into long-term contracts with private sector entities for the recycling of spent nuclear fuel.

   Inserted: (d) Competitive Selection.--Contracts awarded under subsection (c) shall be awarded on the basis of a competitive bidding process that--

   Inserted: (1) maximizes the competitive efficiency of the projects funded;

   Inserted: (2) best serves the goal of reducing the amount of waste requiring disposal under this Act; and

   Inserted: (3) ensures adequate protection against the proliferation of nuclear materials that could be used in the manufacture of nuclear weapons.

   Inserted: (e) Regulatory Authority.--Not later than 1 year after the date of enactment of this Act, the Nuclear Regulatory Commission, in collaboration with the Secretary of Energy, shall promulgate regulations for the licensing of facilities for recovery and use of spent nuclear fuel that provide reasonable assurance that licenses issued for that purpose will not be counter to the defense, security, and national interests of the United States.

   The amendment doesn't say where this goes; the clerk decides.

   Original wording

   At the appropriate place, insert the following:

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As printed