Treatment of bonds issued to finance renewable energy resource facilities and conservation and efficiency facilities and other specified greenhouse gas emission technologies

(a)

In general

Section 142(a) of the Internal Revenue Code of 1986 is amended by striking or at the end of paragraph (14), by striking the period at the end of paragraph (15) and inserting a comma, and by inserting after paragraph (15) the following new paragraphs:

(16)renewable energy resource facilities, (17)conservation and efficiency facilities and projects, or (18)zero emission vehicles and related facilities or projects.

(b)

Renewable energy resource facility

Section 142 of such Code is further amended by adding at the end the following new subsection:

(n)

Renewable energy resource facilities

For purposes of subsection (a)(16)— (1)

In general

The term renewable energy resource facility means— (A)any facility used to produce electric or thermal energy (including a distributed generation facility) from— (i)solar, wind, or geothermal energy, (ii)marine and hydrokinetic renewable energy, (iii)incremental hydropower, (iv)biomass (as defined in section 203(b) of the Energy Policy Act of 2005 (42 U.S.C. 15852(b))), or (v)landfill gas, or (B)any facility or project used for the manufacture of facilities referred to in subparagraph (A). (2)

Definitions

For purposes of paragraph (1)— (A)

Geothermal energy

The term geothermal energy means energy derived from a geothermal deposit (within the meaning of section 613(e)(2)) or from geothermal heat pumps. (B)

Marine and hydrokinetic renewable energy

The term marine and hydrokinetic renewable energy has the meaning given such term in section 45(c)(10). (C)

Incremental hydropower

The term incremental hydropower means additional energy generated as a result of efficiency improvements or capacity additions to existing hydropower facilities made on or after the date of enactment of this subsection. The term incremental hydropower does not include additional energy generated as a result of operational changes not directly associated with efficiency improvements or capacity additions.

(c)

Conservation and efficiency

Section 142 of such Code is amended by adding at the end the following new subsection:

(o)

Conservation and efficiency facilities and projects

For purposes of subsection (a)(17), the term conservation and efficiency facility and project means— (1)any facility used for the conservation or the efficient use of energy, including energy efficient retrofitting of existing buildings, or for the efficient storage, transmission, or distribution of energy, including any facility or project designed to implement smart grid technologies (as described in title XIII of the Energy Independence and Security Act of 2007, or individual components of such technologies as listed in section 1301 of such Act), (2)any facility used for the conservation of or the efficient use of water, including— (A)any facility or project designed to— (i)reduce the demand for water, (ii)improve efficiency in use and reduce losses and waste of water, and (iii)improve land management practices to conserve water, or (B)any individual component of a facility or project referred to in subparagraph (A), or (3)any facility or project used for the manufacture of facilities referred to in paragraphs (1) and (2).

For purposes of paragraph (2)(A), facilities and projects does not include facilities or projects that store water.

(d)

Zero emission vehicles and related facilities or projects

Section 142 of such Code is amended by adding at the end the following new subsection:

(p)

Zero emission vehicles and related facilities or projects

(1)

Zero emission vehicles

The term zero emission vehicles means vehicles that have no tailpipe emissions, evaporative emissions, or onboard emission-control systems that can deteriorate over time. (2)

Facilities related to zero emission vehicles

A facility or project is related to a zero emission vehicle if the facility is any real or personal property to be used in the design, technology transfer, manufacture, production, assembly, distribution, or service of zero emission vehicles.

(e)

Coordination with section 45

Paragraph (3) of section 45(b) of such Code is amended by adding at the end the following new sentence: Clause (ii) of subparagraph (A) shall not apply with respect to (I) any qualified facility that is a renewable energy resource facility described in section 142(a)(16), (II) any qualified facility that is a conservation and efficiency facility described in section 142(a)(17), or (III) any qualified facility that is a zero emission vehicle and related facility or project described in section 142(a)(18).. (f)

Coordination with section 45K

Subparagraph (A) of section 45K(b)(3) of such Code is amended by adding at the end the following flush sentence: Clause (i)(II) shall not apply with respect to (aa) any qualified facility that is a renewable energy resource facility described in section 142(a)(16), (bb) any qualified facility that is a conservation and efficiency facility described section 142(a)(17), or (cc) any qualified facility that is a zero emission vehicle and related facility or project described in section 142(a)(18).. (g)

Coordination with section 146(g)(3)

Section 146(g)(3) is amended by striking or (15) and all that follows through the end of the paragraph and inserting (15), (16), (17), or (18). (h)

Effective date

The amendments made by this section shall apply to obligations issued after the date of the enactment of this Act.