[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[S. 1094 Introduced in Senate (IS)]

111th CONGRESS
  1st Session
                                S. 1094

  To amend the Internal Revenue Code of 1986 to provide for an energy 
         carrier production tax credit, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              May 20, 2009

   Mr. Wyden 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 for an energy 
         carrier production tax credit, 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. SHORT TITLE.

    This Act may be cited as the ``Renewable Energy Alternative 
Production Act'' or the ``REAP Act''.

SEC. 2. CREDIT FOR PRODUCTION OF RENEWABLE ENERGY.

    (a) In General.--Section 45 of the Internal Revenue Code of 1986 is 
amended by adding at the end the following new subsection:
    ``(f) Credit Allowed for Production of Non-Electric Energy.--
            ``(1) In general.--The credit allowed under subsection (a) 
        shall be increased by an amount equal to the product of--
                    ``(A) the dollar amount determined under paragraph 
                (2), and
                    ``(B) each million British thermal units (mmBtu) of 
                qualified fuel which is--
                            ``(i) produced by the taxpayer--
                                    ``(I) from qualified energy 
                                resources, and
                                    ``(II) at any facility during the 
                                10-year period beginning on the date 
                                such facility was placed in service,
                            ``(ii) not used for the production of 
                        electricity, and
                            ``(iii) sold by the taxpayer to an 
                        unrelated person during the taxable year.
            ``(2) Dollar amount.--The dollar amount determined under 
        this paragraph shall be the amount determined by the Secretary 
        to be the equivalent, expressed in British thermal units, of 
        the credit allowed under subsection (a) for 1 kilowatt hour of 
        electricity.
            ``(3) Reduction for grants, tax exempt bonds, subsidized 
        energy financing, and other credits.--Rules similar to the 
        rules of subsection (b)(3) shall apply for purposes of 
        paragraph (1).
            ``(4) Definitions and special rules.--For purposes of this 
        subsection--
                    ``(A) Qualified fuel.--The term `qualified fuel' 
                means an energy product which is produced, extracted, 
                converted, or synthesized from a qualified energy 
                resource through a controlled process, including 
                pyrolysis, electrolysis, and anaerobic digestion, which 
                results in a product consisting of methane, synthesis 
                gas, hydrogen, steam, manufactured cellulosic fuels, or 
                any other form of energy provided under regulations by 
                the Secretary and which is used solely as a source of 
                energy.
                    ``(B) Allocation of credit to patrons of 
                agricultural cooperatives.--Rules similar to the rules 
                of subsection (e)(11) shall apply for purposes of 
                paragraph (1).''.
    (b) Conforming Amendments.--
            (1) The heading for section 45 of the Internal Revenue Code 
        of 1986 is amended by striking ``electricity'' and inserting 
        ``energy''.
            (2) The table of sections for subpart D of part IV of 
        subchapter A of chapter 1 of such Code is amended by striking 
        ``Electricity'' in the item relating to section 45 and 
        inserting ``Energy''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.

SEC. 3. ENERGY CREDIT FOR ONSITE RENEWABLE NON-ELECTRIC ENERGY 
              PRODUCTION FACILITIES.

    (a) Credit Allowed.--Clause (i) of section 48(a)(2)(A) of the 
Internal Revenue Code of 1986 is amended--
            (1) by striking ``and'' at the end of subclause (III), and
            (2) by adding at the end the following new subclause:
                                    ``(V) qualified onsite renewable 
                                non-electric energy production 
                                property,''.
    (b) Qualified Onsite Renewable Non-Electric Energy Production 
Property.--Subsection (c) of section 48 of the Internal Revenue Code of 
1986 is amended by adding at the end the following new paragraph:
            ``(5) Qualified onsite renewable non-electric energy 
        production property.--
                    ``(A) In general.--The term `qualified onsite 
                renewable non-electric energy production property' 
                means property which produces qualified fuel--
                            ``(i) from qualified energy resources,
                            ``(ii) not used for the production of 
                        electricity, and
                            ``(iii) used primarily on the same site 
                        where the production is located to replace an 
                        equivalent amount of non-renewable fuel 
                        (determined based on the number of British 
                        thermal units of non-renewable fuel consumed by 
                        the taxpayer in the prior taxable year) or to 
                        provide energy primarily on such site for a use 
                        that did not exist prior to the later of the 
                        date of the enactment of this paragraph or the 
                        date such property was placed in service.
                    ``(B) Definitions.--For purposes of this 
                paragraph--
                            ``(i) Qualified fuel.--The term `qualified 
                        fuel' means an energy product which is 
                        produced, extracted, converted, or synthesized 
                        from a qualified energy resource through a 
                        controlled process, including pyrolysis, 
                        electrolysis, and anaerobic digestion, which 
                        results in a product consisting of methane, 
                        synthesis gas, hydrogen, steam, manufactured 
                        cellulosic fuels, or any other form of energy 
                        provided under regulations by the Secretary and 
                        which is used solely as a source of energy.
                            ``(ii) Qualified energy resources.--The 
                        term `qualified energy resources' has the 
                        meaning given such term by paragraph (1) of 
                        section 45(c).
                            ``(iii) Termination.--The term `qualified 
                        onsite renewable non-electric energy production 
                        property' shall not include any property for 
                        any period after the date which is 10 years 
                        after the date of the enactment of the 
                        Renewable Energy Alternative Production Act.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to periods after the date of the enactment of this Act, under 
rules similar to the rules of section 48(m) of the Internal Revenue 
Code of 1986 (as in effect on the day before the date of the enactment 
of the Revenue Reconciliation Act of 1990).

SEC. 4. RENEWABLE NON-ELECTRIC ENERGY PRODUCTION FACILITIES ELIGIBLE 
              FOR NEW CLEAN RENEWABLE ENERGY BONDS.

    (a) In General.--Paragraph (1) of section 54C(d) of the Internal 
Revenue Code of 1986 is amended to read as follows:
            ``(1) Qualified renewable energy facility.--The term 
        `qualified renewable energy facility' means a facility which 
        is--
                    ``(A)(i) a qualified facility (as determined under 
                section 45(d) without regard to paragraphs (8) and (10) 
                thereof and to any placed in service date), or
                    ``(ii) a facility which produces qualified fuel (as 
                defined in section 45(f)(4)(A)) which is derived from 
                qualified energy resources (within the meaning of 
                section 45(f)(4)(B)) and not used for the production of 
                electricity, and
                    ``(B) owned by a public power provider, a 
                governmental body, or a cooperative electric 
                company.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to obligations issued after the date of the enactment of this Act.
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