[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[S. 414 Introduced in Senate (IS)]







106th CONGRESS
  1st Session
                                 S. 414

    To amend the Internal Revenue Code of 1986 to provide a 5-year 
 extension of the credit for producing electricity from wind, and for 
                            other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           February 11, 1999

  Mr. Grassley (for himself, Mr. Jeffords, Mr. Conrad, Mr. Leahy, Mr. 
Murkowski, Mr. Smith of Oregon, Mr. Wellstone, Mr. Chafee, Mr. Breaux, 
     Mr. Graham, Mr. Mack, Mr. Daschle, Mr. Dorgan, and Mr. Burns) 
introduced the following bill; which was read twice and referred to the 
                          Committee on Finance

_______________________________________________________________________

                                 A BILL


 
    To amend the Internal Revenue Code of 1986 to provide a 5-year 
 extension of the credit for producing electricity from wind, and for 
                            other purposes.

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

SECTION 1. 5-YEAR EXTENSION OF CREDIT FOR PRODUCING ELECTRICITY FROM 
              WIND.

    (a) In General.--Paragraph (3) of section 45(c) of the Internal 
Revenue Code of 1986 (defining qualified facility) is amended to read 
as follows:
            ``(3) Qualified facility.--The term `qualified facility' 
        means any facility owned by the taxpayer which is originally 
        placed in service--
                    ``(A) in the case of a facility using wind to 
                produce electricity, after December 31, 1993, and 
                before July 1, 2004, and
                    ``(B) in the case of a facility using closed-loop 
                biomass to produce electricity, after December 31, 
                1992, and before July 1, 1999.''.
    (b) Credit Not To Apply to Electricity Sold to Utilities Under 
Certain Contracts.--Subsection (b) of section 45 of such Code is 
amended by adding at the end the following new paragraph:
            ``(4) Credit not to apply to electricity sold to utilities 
        under certain contracts.--
                    ``(A) In general.--The credit determined under 
                subsection (a) shall not apply to electricity--
                            ``(i) produced at a qualified facility 
                        placed in service by the taxpayer after June 
                        30, 1999, and
                            ``(ii) sold to a utility pursuant to a 
                        contract originally entered into before January 
                        1, 1987 (whether or not amended or restated 
                        after that date).
                    ``(B) Exception.--Subparagraph (A) shall not apply 
                if--
                            ``(i) the prices for energy and capacity 
                        from such facility are established pursuant to 
                        an amendment to the contract referred to in 
                        subparagraph (A)(ii);
                            ``(ii) such amendment provides that the 
                        prices set forth in the contract which exceed 
                        avoided cost prices determined at the time of 
                        delivery shall apply only to annual quantities 
                        of electricity (prorated for partial years) 
                        which do not exceed the greater of--
                                    ``(I) the average annual quantity 
                                of electricity sold to the utility 
                                under the contract during calendar 
                                years 1994, 1995, 1996, 1997, and 1998, 
                                or
                                    ``(II) the estimate of the annual 
                                electricity production set forth in the 
                                contract, or, if there is no such 
                                estimate, the greatest annual quantity 
                                of electricity sold to the utility 
                                under the contract in any of the 
                                calendar years 1996, 1997, or 1998; and
                            ``(iii) such amendment provides that energy 
                        and capacity in excess of the limitation in 
                        clause (ii) may be--
                                    ``(I) sold to the utility only at 
                                prices that do not exceed avoided cost 
                                prices determined at the time of 
                                delivery, or
                                    ``(II) sold to a third party 
                                subject to a mutually agreed upon 
                                advance notice to the utility.
                For purposes of this subparagraph, avoided cost prices 
                shall be determined as provided for in 18 CFR 
                292.304(d)(1) or any successor regulation.''.
                                 <all>