S.Amdt. 2364

SA 2364. Mr. CARDIN (for himself and Mr. Cramer) submitted an
amendment intended to be proposed to amendment SA 2137 proposed by Mr.
Schumer (for Ms. Sinema (for herself, Mr. Portman, Mr. Manchin, Mr.
Cassidy, Mrs. Shaheen, Ms. Collins, Mr. Tester, Ms. Murkowski, Mr.
Warner, and Mr. Romney)) to the bill H.R. 3684, to authorize funds for
Federal-aid highways, highway safety programs, and transit programs,
and for other purposes; which was ordered to lie on the table; as
follows:

Beginning on page 1579, strike line 21 and all that
follows through page 1589, line 15, and insert the following:

SEC. 40323. ZERO-EMISSION NUCLEAR POWER PRODUCTION CREDIT.

(a) In General.--Subpart D of part IV of subchapter A of
chapter 1 of the Internal Revenue Code of 1986 is amended by
adding at the end the following new section:

``SEC. 45U. ZERO-EMISSION NUCLEAR POWER PRODUCTION CREDIT.

``(a) Amount of Credit.--For purposes of section 38, the
zero-emission nuclear power production credit for any taxable
year is an amount equal to the amount by which--
``(1) the product of--
``(A) 1.5 cents, multiplied by
``(B) the kilowatt hours of electricity--
``(i) produced by the taxpayer at a qualified nuclear power
facility, and
``(ii) sold by the taxpayer or an affiliate of the taxpayer
to an unrelated person during the taxable year, exceeds
``(2) the reduction amount for such taxable year.
``(b) Definitions.--
``(1) Qualified nuclear power facility.--For purposes of
this section, the term `qualified nuclear power facility'
means any nuclear facility--
``(A) which is owned by the taxpayer and which uses nuclear
energy to produce electricity, and
``(B) which is not an advanced nuclear power facility, as
defined in subsection (d)(1) of section 45J, or which has not
received an allocation under subsection (b) of such section.
``(2) Reduction amount.--

[[Page S5749]]

``(A) In general.--For purposes of this section, the term
`reduction amount' means, with respect to any qualified
nuclear power facility for any taxable year, the amount equal
to the lesser of--
``(i) the amount determined under subsection (a)(1), or
``(ii) the amount equal to 80 percent of the excess of--

``(I) subject to subparagraph (B), the gross receipts from
any electricity produced by such facility and sold to an
unrelated person during such taxable year (at rates
established or approved by a State or political subdivision
thereof, any agency or instrumentality of the United States,
or a public service or public utility commission or other
similar body of any State or political subdivision thereof,
in the case of any property described in section 168(i)(10)),
over
``(II) the amount equal to the product of--

``(aa) 2.5 cents, multiplied by
``(bb) the amount determined under subsection (a)(1)(B).
``(B) Treatment of certain receipts.--
``(i) In general.--The amount determined under subparagraph
(A)(ii)(I) shall include any amount received by the taxpayer
during the taxable year with respect to the qualified nuclear
power facility from a zero-emission credit program unless the
amount received by the taxpayer is subject to reduction--

``(I) by the full amount of the credit determined under
this section, or
``(II) by any lesser amount if such amount entirely offsets
the amount received from a zero-emission credit program.

``(ii) Zero-emission credit program.--For purposes of this
subparagraph, the term `zero-emission credit program' means
any State or local government program that provides payments
to a qualified nuclear power facility for, in whole or in
part, the zero-emission, zero-carbon, or air quality
attributes of any portion of the electricity produced by such
facility.
``(3) Electricity.--For purposes of this section (with the
exception of subsection (d)(3)), the term `electricity' means
the energy produced by a qualified nuclear power facility
from the conversion of nuclear fuel into electric power.
``(c) Election for Direct Payment.--
``(1) In general.--In the case of a taxpayer making an
election (at such time and in such manner as the Secretary
may provide) under this subsection with respect to any
portion of the credit which would (without regard to this
subsection) be determined under subsection (a) with respect
to such taxpayer, such taxpayer shall be treated as making a
payment against the tax imposed by subtitle A for the taxable
year equal to the amount of such portion.
``(2) Certain entities treated as taxpayers.--For purposes
of the credit under subsection (a)--
``(A) any State utility with a service obligation, as such
terms are defined in section 217 of the Federal Power Act (as
in effect on the date of the enactment of this subsection),
``(B) any mutual or cooperative electric company described
in section 501(c)(12) or section 1381(a)(2)(C), and
``(C) an Indian tribal government (as defined in section
139E(c)(1)),

shall be treated as a taxpayer, but only if such entity makes
the election under this subsection.
``(3) Timing.--The payment described in paragraph (1) shall
be treated as made on the later of the due date of the return
of tax for the taxable year or the date on which such return
is filed.
``(4) Exclusion from gross income.--Gross income of the
taxpayer shall be determined without regard to this
subsection.
``(5) Denial of double benefit.--Solely for purposes of
section 38, in the case of a taxpayer making an election
under this subsection, the credit determined under subsection
(a) shall be reduced by the amount of the portion of such
credit with respect to which the taxpayer makes such
election.
``(d) Other Rules.--
``(1) Inflation adjustment.--The 1.5 cent amount in
subsection (a)(1)(A) and the 2.5 cent amount in subsection
(b)(2)(A)(ii)(II)(aa) shall each be adjusted by multiplying
such amount by the inflation adjustment factor (as determined
under section 45(e)(2) by substituting `calendar year 2020'
for `calendar year 1992' in subparagraph (B) thereof ) for
the calendar year in which the sale occurs. If any amount as
increased under the preceding sentence is not a multiple of
0.1 cent, such amount shall be rounded to the nearest
multiple of 0.1 cent.
``(2) Special rules.--Rules similar to the rules of
paragraphs (1), (3), (4), and (5) of section 45(e) shall
apply for purposes of this section.
``(3) Phaseout of credit.--If the Secretary, in
consultation with the Secretary of Energy and the
Administrator of the Environmental Protection Agency,
determines that the annual greenhouse gas emissions from
electricity production in the United States for a calendar
year are equal to or less than 50 percent of the annual
greenhouse gas emissions from electricity production in the
United States for calendar year 2020, the amount of the
credit determined under the subsection (a) shall be reduced
by an amount equal to the product of--
``(A) the amount of credit determined under the subsection
(a), as determined before application of this paragraph,
multiplied by
``(B) an amount (expressed as a percentage) equal to twice
the percentage amount that the percentage determined by the
Secretary pursuant to this paragraph exceeds 50 percent.
``(e) Recapture.--
``(1) In general.--The Secretary, in consultation with the
Secretary of Energy and the Secretary of Labor, shall, by
regulations, provide for recapturing the benefit of any
credit allowable under subsection (a) for any taxable year if
the Secretary determines that--
``(A) any contractor or subcontractor has failed to pay a
laborer or mechanic employed by the contractor or
subcontractor in the performance of any construction, repair,
alteration, or maintenance with respect to the qualified
nuclear power facility during such taxable year wages at
rates not less than the rates prevailing on projects of a
similar character in the locality as determined by the
Secretary of Labor in accordance with subchapter IV of
chapter 31 of title 40, United States Code,
``(B) any such contractor or subcontractor has failed to
make the records required under paragraph (2) available to
the Secretary for the purposes described in such paragraph,
or
``(C) any contractor or subcontractor has failed to satisfy
the requirements under subsection (f) during such taxable
year.
``(2) Investigation.--Upon receipt of a complaint or its
own initiative, the Secretary, in consultation with the
Secretary of Energy and the Secretary of Labor, shall request
and review the payroll records of contractors and
subcontractors engaged in the performance of any
construction, repair, alteration, or maintenance with respect
to a qualified nuclear power facility, and interview
individuals employed by such contractors and subcontractors,
to determine whether the requirements of paragraph (1)(A) and
(1)(C) have been met.
``(3) Administration and enforcement.--With respect to the
administration and enforcement of the standards in paragraph
(1)(A) and (1)(C), the Secretary of Labor shall have the
authority and functions set forth in Reorganization Plan
Numbered 14 of 1950 (64 Stat. 1267; 5 U.S.C. App.) and
section 3145 of title 40, United States Code.
``(f) Use of Qualified Apprentices.--
``(1) In general.--All contractors and subcontractors
engaged in the performance of construction, repair,
alteration, or maintenance with respect to the qualified
nuclear power facility shall, subject to paragraph (2),
ensure that not less than 15 percent of the total labor hours
of such work be performed by qualified apprentices.
``(2) Apprentice-to-journeyworker ratio.--The requirement
under paragraph (1) shall be subject to any applicable
requirements for apprentice-to-journeyworker ratios of the
Department of Labor or the applicable State apprenticeship
agency.
``(3) Participation.--Each contractor and subcontractor who
employs 4 or more individuals to perform construction,
repair, alteration, or maintenance with respect to the
qualified nuclear power facility shall employ 1 or more
qualified apprentices to perform such work.
``(4) Exception.--Notwithstanding any other provision in
this subsection, this section shall not apply in the case of
a taxpayer who--
``(A) demonstrates a lack of availability of qualified
apprentices in the geographic area of the construction,
repair, alteration, or maintenance; and
``(B) makes a good faith effort, and its contractors and
subcontractors make a good faith effort, to comply with the
requirements of this subsection.
``(5) Definitions.--In this subsection:
``(A) Labor hours.--The term `labor hours'--
``(i) means the total number of hours devoted to the
performance of construction, repair, alteration, or
maintenance by employees of the contractor or subcontractor;
and
``(ii) excludes any hours worked by--

``(I) foremen;
``(II) superintendents;
``(III) owners; or
``(IV) persons employed in a bona fide executive,
administrative, or professional capacity (within the meaning
of those terms in part 541 of title 29, Code of Federal
Regulations).

``(B) Qualified apprentice.--The term `qualified
apprentice' means an individual who is an employee of the
contractor or subcontractor and who is participating in a
registered apprenticeship program, as defined in section
3131(e)(3)(B).
``(g) Termination.--This section shall not apply to taxable
years beginning after the earlier of--
``(1) the date as of which the Secretary determines that
the aggregate of the credits allowed under subsection (a) to
all taxpayers in all taxable years exceeds $6,000,000,000, or
``(2) December 31, 2030.''.
(b) Conforming Amendments.--
(1) Section 38(b) of the Internal Revenue Code of 1986 is
amended--
(A) in paragraph (32), by striking ``plus'' at the end,
(B) in paragraph (33), by striking the period at the end
and inserting ``, plus'', and
(C) by adding at the end the following new paragraph:
``(34) the zero-emission nuclear power production credit
determined under section 45U(a).''.
(2) The table of sections for subpart D of part IV of
subchapter A of chapter 1 of such Code is amended by adding
at the end the following new item:

[[Page S5750]]

``Sec. 45U. Zero-emission nuclear power production credit.''.
(c) Report.--Not later than January 1, 2024, the
Comptroller General of the United States shall submit to
Congress a report with respect to the credits allowed for
qualified nuclear power facilities under section 45U of the
Internal Revenue Code of 1986 (as added by subsection (a)),
which shall include--
(1) an evaluation of the effectiveness of the credits
allowed under such section in regards to ensuring grid
reliability while avoiding emissions of carbon dioxide,
nitrogen oxides, sulfur oxides, particulate matter, and
hazardous air pollutants;
(2) a quantification of the ratepayer savings achieved as a
result of the credits allowed under such section; and
(3) any recommendations to renew or expand the credits
allowed under such section.
(d) Effective Date.--This section shall apply to
electricity produced and sold after December 31, 2020, in
taxable years beginning after such date.
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