II 111th CONGRESS 2d Session S. 3571 IN THE SENATE OF THE UNITED STATES July 13, 2010 Ms. Murkowski introduced the following bill; which was read twice and referred to the Committee on Finance A BILL To extend certain Federal benefits and income tax provisions to energy generated by hydropower resources.

1.

Short title

This Act may be cited as the Hydropower Renewable Energy Development Act of 2010.

2.

Hydroelectric energy treated as renewable energy

Notwithstanding any other provision of law or regulation, for purposes of any Federal program or standard, the term renewable energy shall include hydroelectric energy generated in the United States by a hydroelectric facility, including electric power produced by efficiency improvements and capacity additions, generation added to nonpower dams, conduits, pumped storage facilities, marine and hydrokinetic resources, and conventional hydropower.

3.

Production tax credit for hydropower resources

(a)

In general

Subparagraph (A) of section 45(c)(8) of the Internal Revenue Code of 1986 is amended— (1)by striking and at the end of clause (i), (2)by striking the period at the end of clause (ii) and inserting , and, and (3)by adding at the end the following new clause: (iii)in the case of any hydropower facility described in subparagraph (D), the hydropower production from the facility for the taxable year. . (b)

Production

Paragraph (8) of section 45(c) of the Internal Revenue Code of 1986 is amended by adding at the end the following new subparagraph: (D)

Other hydropower production facilities

For purposes of subparagraph (A), a facility is described in this subparagraph if such facility— (i)is a hydroelectric dam or nonhydroelectric dam— (I)which is placed in service after the date of the enactment of the Hydropower Renewable Energy Development Act of 2010, and (II)which would be described in subparagraph (A)(i) or (C) but for the placed in service date, (ii)is a hydroelectric facility not described in clause (i) which has a nameplate capacity rating of less than 50 megawatts, or (iii)is not described in clause (i) or (ii) and generates energy through the use of a lake tap or pumped storage. . (c)

Qualified facilities

Paragraph (9) of section 45(d) of the Internal Revenue Code of 1986 is amended to read as follows: (9)

Qualified hydropower facility

(A)

Incremental hydropower production

In the case of a facility described in subsection (c)(8), without regard to subparagraph (C) or (D) thereof, which produces incremental hydropower production, the term qualified facility means such facility but only to the extent of such incremental hydropower production attributable to efficiency improvements or additions to capacity described in subsection (c)(8)(B) placed in service after August 8, 2005, and before January 1, 2014. (B)

Production from certain nonhydroelectric dams

In the case of a facility described in subsection (c)(8)(C) which produces qualified hydropower production, the term qualified facility means any such facility placed in service after August 8, 2005, and before January 1, 2014. (C)

Production from other hydropower facilities

In the case of qualified hydropower production at a facility after the date of the enactment of the Hydropower Renewable Energy Development Act of 2010, the term qualified facility includes any such facility which is described in subsection (c)(8)(D). (D)

Credit period

In the case of a qualified facility described in subparagraph (A), the 10-year period referred to in subsection (a) shall be treated as beginning on the date the efficiency improvements or additions to capacity are placed in service. . (d)

Increase in credit rate

Subparagraph (A) of section 45(b)(4) of the Internal Revenue Code of 1986 is amended by striking (9),. (e)

Effective date

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