Title I: Replacing Outdated Automobiles

The purpose of this section is to encourage Americans to turn in outdated, polluting and fuel inefficient vehicles through tax credits for the purchase of new, more fuel efficient automobiles. This section provides a tax credit of $1,500 if a taxpayer trades in a car over 15 years old and purchases a new vehicle in the same transaction.

The "Passenger Automobile Replacement Credit" will be subject to two limitations:

• The new vehicle must be produced by a company that was not in violation of federal CAFÉ rules in the previous year.
• The old car must have been owned by the recipient of the credit for the previous 2 years.

This provision will save nearly two million barrels of oil per day.

Title II: Server Efficiency

This section provides a business tax credit for the purchase qualified energy efficient computers. The credit will not exceed 20% of the price of the computer. The definition of a qualified computer is a computer server rated as energy efficient by the EPA Energy Star program.

Title III: Expanded Federal Loan Guarantees for R&D Funding of Alternative Transportation Fuels

This section creates a $20 billion loan guarantee program at the Department of Energy for domestic plant retooling, production, and commercialization of energy-efficient and gasoline-saving vehicles.

American automakers are on the verge of significant technological breakthroughs. Loan guarantees can help make sure that these breakthroughs are done here in the United States, creating and protecting jobs.

This provision will save nearly two million barrels of oil per day.

Title IV: Expanded Use of ITS Technology

This provision is designed to expand the use of Intelligent Transportation Systems (ITS) and Vehicle Infrastructure Integration (VII) technology, which can alleviate road congestion.

Specifically, this section allows all states to use federal Congestion Mitigation and Air Quality Improvement (CMAQ) funds for qualified ITS projects without time limitations.

The State of Michigan already has a waiver to use these funds; this section would expand it nationwide. This allows states to use CMAQ money to fund ongoing ITS projects instead of using CMAQ to build only new roads, which are one-time expenditures.

This provision is intended to cut congestion by ten percent, and will save at least 30,000 barrels of oil per day.

Title V: Transition Coal-To-Liquid Fuels into a Viable Commercial Alternative to Traditional Aviation Fuels

The purpose of this section is to transition from jet fuel to Coal-to-Liquids (CTL). Specifically, this section directs the Department of Transportation (DOT) and other agencies, in coordination with Universities, to establish programs to develop jet fuel made from coal and other domestic feed stocks.

This section grants the Department of Defense (DOD) and other agencies the authority to sign long-term contracts with fuel manufacturers, which will make it much easier for CTL companies to obtain private financing. This provision requires that all contracts:

• Be competitively bid;
• Have prices that are market competitive;
• Are no longer than 25 years; and
• Use fuel with a life-cycle green house gas emission equal to or less than the green house gas emissions of the fuel it will replace

This section also directs the Federal Aviation Administration (FAA) to designate a University as a “Center of Excellence for Coal-to-Liquid Fuels.”

It also creates a new tax credit of 50 cents per gallon for alternative and unconventional aviation fuel mixtures, further improving the cost competitiveness of CTL. This tax credit expires in 2016.

This provision will save 1.6 million barrels of oil a day.

Title VI: Expanding Nuclear Energy in the United States

In total, these provisions will serve as a catalyst for at least 30 new nuclear plants. Each new nuclear plant will create 4,400 new American jobs (2,000 at the plant and 2,400 spinoff jobs) for a total of 72,000 American jobs. 

Section 1 – Enhanced Loan Guarantees:

This section expands an existing federal program that provides loan guarantees for technologies that reduce emissions.

Specifically, this section would:

• Provide a definition of project costs, which is currently missing from federal law. The definition clarifies that “project cost” includes credit subsidy cost, front-end development costs, working capital, etc.
• Exempts self-pay guarantees from further authorization
• Mandates 100 percent coverage of the loan amount, unless a project sponsor requests a lesser amount, and maintains the original statutory limitation of 80 percent of project costs.
• Make administrative fees collected by DOE available to pay administrative expenses without any additional taxpayer money.

Section 2 – Improved “Standby Support”:

This section provides some insurance against nuclear plant delays during construction and in commercial operation caused by the licensing process and/or litigation.

“Standby Support” is already implemented by the DOE, but it is too limited to provide the investment protection necessary to spur new nuclear power development.

Specifically, this section would:

• Retains the existing six-plant limit in the Energy Policy Act, but allows the coverage to roll over to new plants
• Increase the coverage on all six contracts to $500 million.
• Allow coverage of all delay costs (not just debt service) incurred by a project developer due to licensing, litigation or political factors beyond the project developer’s control.
• Eliminate the requirement that a project sponsor must absorb six months of delay costs before coverage begins.

Section 3 – Nuclear Power 2010 Program:

This section expands on recent efforts to encourage more Nuclear Power by 2010 by:

• Streamlining the licensing process for Nuclear Power plants, without jeopardizing safety
• Conducting first-of-a-kind design and engineering work on at least two advanced nuclear reactor designs so that we can make accurate cost and construction time estimates.

This section also provides sufficient authorization for appropriations to cover the expanded program scope. Specifically, it authorizes:

• $182.8 million in FY 2008
• $159.6 million in FY 2009
• $135.6 million in FY 2010
• $46.9 million in FY 2011
• $2.2 million in FY 2012.

Sections 4 and 5 - Expansion of Domestic Manufacturing for Nuclear Components and Equipment:

As we build new nuclear power plants, new job opportunities will be created. But because we have not constructed a nuclear plant in the United States in decades, few Americans are prepared to take advantage of this opportunity. That is why this section would establish an Interagency Working Group to identify incentives (e.g., tax stimulus, loans and loan guarantees, grants) necessary to increase U.S. manufacturing capacity for nuclear energy products and components. These incentives could include:

• Assistance to small and mid-sized businesses to establish quality assurance programs to comply with domestic and international nuclear requirements.
• Financial incentives to expand manufacturing capacity.
• Assistance 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

This section would also provide a 20 percent investment tax credit to companies that expand nuclear manufacturing capability.

Section 5 would also require the Secretary of Labor to implement a program providing workforce training to meet the high demand for workers skilled in the nuclear utility and nuclear energy products and services industries.

Section 6 - Licensing of New Nuclear Power Plants:

This section would amend the Atomic Energy Act (AEA) to achieve greater efficiencies in the licensing process for new nuclear power plants, by eliminating the mandatory hearing required by the AEA. Specifically, this section would amend AEA Section 189a(1)(A) to eliminate the requirement to conduct a hearing and make findings on uncontested issues for every COL and ESP application.

Section 7 – Investment Tax Credit for New Nuclear Plant Construction:

This section would provide an investment tax credit of 10 percent for any new nuclear plant, as long as construction of the facility was approved by the Nuclear Regulatory Commission on or before December 31, 2013.

Section 8 – National Nuclear Energy Council:

This section would require the Secretary of Energy to establish a National Nuclear Energy Council as a federally chartered privately funded advisory body to the Secretary of Energy. The Council would, at the request of the Secretary of Energy, prepare reports and analyses and provide recommendations on key nuclear energy issues.

Sections 9 through 11 – Management of Spent Nuclear Fuel:

These sections would authorize the Secretary of Energy to negotiate spent fuel storage agreements with communities willing to host temporary spent nuclear fuel storage facilities.

The agreements would go into force only if:

• The Governor of the state in which the facility is located submits written notice of support.
• Legislation to implement the agreement has been enacted by Congress

Legislation implementing the agreement between the Secretary of Energy and the willing community would be considered by Congress pursuant to a “fast-track” process.

Section 12 – Contracting and Nuclear Waste Fund:

This section directs the Secretary of Energy to enter into contracts with any entity that submit a license application for a new nuclear power reactor.

This section also directs the Secretary of Energy to settle any actions pending on the date of enactment of this Act resulting from failure to commence accepting spent nuclear fuel or high-level radioactive waste on or before January 31, 1998.

Section 13 – Waste Confidence

This section provides a Congressional determination that there is reasonable assurance that high-level radioactive waste and spent nuclear fuel will be managed in a safe manner without significant environmental impact until capacity for eventual disposal is available.

Title VII: Extending Tax Credits for Renewable Energy Sources and Energy Efficiency Projects:

This section extends through 2009 the tax credit for the production of electricity from renewable resources (e.g., biomass, geothermal energy, landfill gas, and trash combustion). It also includes marine and hydrokinetic renewable energy as a renewable resource eligible for such credit. Finally, it allows sales of electricity produced from renewable resources to regulated public utilities.

This section also extends:

• The energy investment tax credit for solar energy, fuel cell, and microturbine property through 2016. This repeals the dollar per kilowatt limitation for fuel cell property under the energy investment tax credit. It also allows public electric utilities to qualify for such credit.
• The tax credit for residential energy efficient property expenditures through 2009. It repeals the $2,000 limitation on the tax credit for solar electric property. It also allows an offset against the alternative minimum tax (AMT) of tax credit amounts.
• The tax credit for investment in clean renewable energy bonds through 2009. It increases the national limitation amount for such bonds.
• Deferral provisions relating to the recognition of gain by certain electric utilities through 2009.
• The tax credit for non-business energy property through 2009. This includes residential biomass fuel stoves (pellet stoves) as eligible energy property.
• The tax credit for energy efficient new homes through 2010.
• The tax deduction for energy efficient commercial buildings through 2009. It also increases the allowable amount of this deduction.
• Extends the tax credit for energy efficient appliances to include appliances produced in 2008, 2009, and 2010. This revises and updates energy efficiency standards for appliances in accordance with the Energy Independence and Security Act of 2007.

According to the Solar Energy Industry Association the extension of these tax credits will protect 112,000 American jobs.

Section VIII: Expansion of Tax Credits for Energy Efficient Windows

This provision removes the current $200 cap on the value of tax credits homeowners can use to install energy efficient windows. Allowing homeowners to use the entire $500 tax credit on energy efficient windows if they so choose.

Section IX: Creating New Domestic Supplies of Oil and Gas

Subtitle A:

This section directs the Secretary of the Interior to establish a competitive oil and gas leasing program for the exploration, development, and production of the oil and gas resources on the Coastal Plain of Alaska. It also repeals the prohibition against production or leasing of oil and gas resources from the Arctic National Wildlife Refuge (ANWR).

Specifically, this section states that the Secretary: (1) is not required to identify nonbearing alternative courses of action or to analyze the environmental effects of such courses of action; and (2) is only required to identify a preferred action for such leasing and a single leasing alternative, and to analyze the environmental effects and potential mitigation measures for those two alternatives.

Next, this section authorizes the Secretary to designate up 45,000 acres of the Coastal Plain as a Special Area after consultation with the state of Alaska, the city of Kaktovik, and the North Slope Borough. It also directs the Secretary to designate the Sadlerochit Spring area as a Special Area.

In addition, this section prohibits surface occupancy of the Special Area lands if the Secretary leases any part for oil and gas exploration, development, or production. It also permits directional drilling in such Special Areas. This section also states that the Secretary's sole authority to close lands within the Coastal Plain to oil and gas leasing, exploration, development, and production is that set forth in this Act.

Finally, this section:

• Prescribes guidelines for lease sales grants, including a minimum of 200,000 acres for the first lease sale.
• Creates a "no significant adverse effect" standard to govern Coastal Plain activities and a plan for federal and state distribution of revenues that pays semiannually to the State of Alaska 50% of revenues from the operations authorized under this Act.
• Directs the Secretary to issue rights-of-way and easements across the Coastal Plain for the transportation of oil and gas without regard to specified provisions of the Alaska National Interest Lands Conservation Act.
• Directs the Secretary to convey: (1) to the Kaktovik Inupiat Corporation the surface estate of certain lands to the extent necessary to fulfill the Corporation's entitlement in accordance with a specified Agreement; and (2) to the Arctic Slope Regional Corporation the remaining subsurface estate to which it is entitled pursuant to a specified agreement between such Corporation and the United States of America.
• Authorizes financial assistance for entities directly impacted by oil and gas exploration or production, including the North Slope Borough and the City of Kaktovik.
• Establishes in the Treasury the Coastal Plain Local Government Impact Aid Assistance Fund.

In total, these provisions would produce over 3 million barrels of oil per day.

Subtitle B:

This section repeals current executive order banning production off of the OCS. This would produce over two million barrels of oil per day.

Title X: $2 Billion for University R&D of Future Fuels

This section would redirect the funding for FY08 identified by the Office of Management and Budget (OMB) in its annual report to Congress titled “Federal Climate Change Expenditures Report to Congress” and “Climate Change Science” to be eligible as grants to Universities to research and develop climate change technologies, also as defined by OMB.