II 110th CONGRESS 1st Session S. 1291 IN THE SENATE OF THE UNITED STATES May 3, 2007 Mr. Thune 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 extend and modify the renewable energy production credit and to extend and modify the credit to holders of clean renewable energy bonds.

1.

Short title

This Act may be cited as the Wind Energy Development Act of 2007 or the WEnD Act.

2.

Extension and modification of renewable electricity production credit

(a)

Extension

Paragraphs (1), (2), (3), (4), (5), (6), (7), and (9) of section 45(d) of the Internal Revenue Code of 1986 (relating to qualified facilities) are each amended by striking January 1, 2009 each place it appears and inserting January 1, 2013. (b)

Modification of inflation adjustment

Paragraph (2) of section 45(b) of the Internal Revenue Code of 1986 is amended by adding at the end the following new sentence: No adjustment shall be made under this paragraph with respect to the 1.5 cent amount in subsection (a) and the 8 cent amount in paragraph (1) for any year after 2007.. (c)

Effective date

The amendments made by this section apply to energy produced and sold after the date of the enactment of this Act, in taxable years ending after such date.

3.

Extension and expansion of credit to holders of clean renewable energy bonds

(a)

Extension

Section 54(m) of the Internal Revenue Code of 1986 (relating to termination) is amended by striking 2008 and inserting 2012. (b)

Annual volume cap for bonds issued during extension period

Subsection (f) of section 54 of the Internal Revenue Code of 1986 (relating to limitation on amount of bonds designated) is amended to read as follows: (f)

Limitation on amount of bonds designated

(1)

Annual national limitation

There is a national clean renewable energy bond limitation for each calendar year of $2,250,000,000. (2)

Allocation by Secretary

(A)

In general

Subject to subparagraph (B), the Secretary shall allocate the amount described in paragraph (1) among qualified projects in such manner as the Secretary determines appropriate. (B)

Limitation on allocations

With respect to any calendar year, the Secretary may not allocate— (i)more than $750,000,000 of the amount described in paragraph (1) to finance qualified projects of qualified borrowers which are public power entities, (ii)more than $250,000,000 of the amount described in paragraph (1) to finance qualified projects of qualified borrowers which are Indian tribes, (iii)more than $500,000,000 of the amount described in paragraph (1) to finance qualified projects of qualified borrowers which are government entities (other than public power entities or Indian tribes), and (iv)more than $750,000,000 of the amount described in paragraph (1) to finance qualified projects of qualified borrowers which are cooperative electric companies or cooperative lenders. (C)

Public power entity

For purposes of subparagraph (B), the term public power entity means a State utility with a service obligation, as such terms are defined in section 217 of the Federal Power Act. . (c)

Effective date

The amendments made by this section shall apply to bonds issued after December 31, 2007.