[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[S. 3714 Introduced in Senate (IS)]

111th CONGRESS
  2d Session
                                S. 3714

 To amend the Internal Revenue Code of 1986 to provide tax incentives 
           for clean coal technology, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             August 5, 2010

 Mr. Conrad (for himself and Mr. Hatch) 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 tax incentives 
           for clean coal technology, 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; FINDINGS.

    (a) Short Title.--This Act may be cited as the ``Coal Energy Bridge 
Act of 2010''.
    (b) Findings.--The Congress finds the following:
            (1) Significantly reducing greenhouse gas emissions from 
        United States coal plants must be part of a strategy to address 
        climate change.
            (2) Carbon capture and sequestration is the key to 
        continued enjoyment of the energy security and economic 
        benefits associated with the use of the Nation's abundant 
        domestic coal resources for power generation.
            (3) Multiple technology demonstrations that increase the 
        efficiency of power plants and thereby reduce carbon dioxide 
        emissions and that demonstrate carbon dioxide capture and 
        sequestration are needed in the near-term as a bridge to a 
        reliable and affordable power system that can achieve future 
        greenhouse gas reduction goals.

SEC. 2. SEVEN-YEAR AMORTIZATION FOR CERTAIN SYSTEMS INSTALLED ON COAL-
              FIRED ELECTRIC GENERATION UNITS.

    (a) In General.--Subsection (d) of section 169 of the Internal 
Revenue Code of 1986 (relating to amortization of pollution control 
facilities) is amended by adding at the end the following new 
paragraph:
            ``(6) Special rule for systems installed on coal-fired 
        electric generation units.--
                    ``(A) In general.--Any mechanical or electronic 
                system--
                            ``(i) which is installed on a coal-fired 
                        electric generation unit after the date of the 
                        enactment of this paragraph, and
                            ``(ii) which reduces carbon dioxide 
                        emissions per net megawatt hour of electricity 
                        generation by 1 or more of the means described 
                        in subparagraph (B) or any other means,
                shall be treated for purposes of this section as a new 
                identifiable treatment facility which abates or 
                controls atmospheric pollution or contamination by 
                removing, altering, disposing, storing, or preventing 
                the creation or emission of pollutants, contaminants, 
                wastes, or heat. Paragraph (1)(C) of this subsection, 
                and subsection (e), shall not apply to any system which 
                is so treated.
                    ``(B) Means for reducing emissions.--The means 
                described in this subparagraph are--
                            ``(i) optimizing combustion,
                            ``(ii) optimizing sootblowing and heat 
                        transfer,
                            ``(iii) upgrading steam temperature control 
                        capabilities,
                            ``(iv) reducing exit gas temperatures (air 
                        heater modifications),
                            ``(v) predrying low rank coals using power 
                        plant waste heat,
                            ``(vi) modifying steam turbines or change 
                        the steam path/blading,
                            ``(vii) replacing single speed motors with 
                        variable speed drives for fans and pumps, and
                            ``(viii) improving operational controls, 
                        including neural networks.
                    ``(C) Special rule for minimum tax.--Section 
                56(a)(5) shall not apply to property to which this 
                paragraph applies.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to property placed in service after the date of the enactment of this 
Act.

SEC. 3. CREDIT FOR INVESTMENT IN CARBON DIOXIDE CAPTURE, TRANSPORT, AND 
              STORAGE EQUIPMENT.

    (a) In General.--Subpart E of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 (relating to rules for computing 
investment credit) is amended by inserting after section 48D the 
following new section:

``SEC. 48E. QUALIFYING CARBON DIOXIDE CAPTURE, TRANSPORT, AND STORAGE 
              EQUIPMENT CREDIT.

    ``(a) General Rule.--For purposes of section 46, the qualifying 
carbon dioxide capture, transport, and storage equipment credit for any 
taxable year is an amount equal to 30 percent of the qualified 
investment for such taxable year.
    ``(b) Qualified Investment.--
            ``(1) In general.--For purposes of subsection (a), the 
        qualified investment for any taxable year is the basis of 
        eligible carbon dioxide capture, transport, and storage 
        property placed in service by the taxpayer during such taxable 
        year which is part of a qualifying clean coal project--
                    ``(A)(i) the construction, reconstruction, or 
                erection of which is completed by the taxpayer, or
                    ``(ii) which is acquired by the taxpayer if the 
                original use of such property commences with the 
                taxpayer, and
                    ``(B) with respect to which depreciation (or 
                amortization in lieu of depreciation) is allowable.
            ``(2) Special rule for certain subsidized property.--Rules 
        similar to section 48(a)(4) shall apply for purposes of this 
        section.
            ``(3) Certain qualified progress expenditures rules made 
        applicable.--Rules similar to the rules of subsections (c)(4) 
        and (d) of section 46 (as in effect on the day before the 
        enactment of the Revenue Reconciliation Act of 1990) shall 
        apply for purposes of this section.
    ``(c) Definitions.--For purposes of this section--
            ``(1) Qualifying clean coal project.--
                    ``(A) In general.--The term `qualifying clean coal 
                project' means any project if such project--
                            ``(i) uses--
                                    ``(I) gasification technology (as 
                                defined in section 48B(c)(2)), or
                                    ``(II) the combustion of coal, 
                                biomass, or both
                        to produce electricity, qualified 
                        transportation fuels, or synthetic natural gas, 
                        and
                            ``(ii)(I) is a new project which is 
                        designed to meet the requirements of 
                        subparagraphs (B), (C), and (D), as applicable, 
                        or
                            ``(II) consists of retrofits to existing 
                        equipment such that the project meets the 
                        requirements of subparagraphs (B), (C), and 
                        (D), as applicable.
                    ``(B) Requirements for electricity production.--
                            ``(i) In general.--In the case of a 
                        qualifying clean coal project which is used to 
                        produce electricity, the project shall meet the 
                        emission requirement of clause (ii) and the 
                        carbon capture requirement of clause (iii).
                            ``(ii) Emission requirement.--The 
                        requirement of this clause is met if the 
                        project is designed--
                                    ``(I) to emit carbon dioxide at an 
                                average annual rate of less than 1,100 
                                pounds per net megawatt hour of 
                                electrical generation, or
                                    ``(II) such that the carbon dioxide 
                                emissions of such project are no 
                                greater than half of the average carbon 
                                dioxide emissions for facilities 
                                producing electricity during 2005 from 
                                the same coal rank as such project, as 
                                determined under regulations prescribed 
                                by the Secretary in consultation with 
                                the Secretary of Energy and the 
                                Administrator of the Environmental 
                                Protection Agency.
                            ``(iii) Carbon capture requirement.--The 
                        requirement of this clause is met--
                                    ``(I) if such unit is among the 
                                first 1,000 megawatts of electric 
                                generation units certified by the 
                                Secretary under subsection (e), to 
                                capture and sequester not less than 
                                500,000 metric tons per year of carbon 
                                dioxide,
                                    ``(II) if such unit is among the 
                                next 3,000 megawatts of electric 
                                generation units certified by the 
                                Secretary under subsection (e), to 
                                capture and sequester not less than 
                                1,000,000 metric tons per year of 
                                carbon dioxide, and
                                    ``(III) for any other unit, to 
                                capture and sequester not less than 
                                2,000,000 metric tons per year of 
                                carbon dioxide.
                    ``(C) Requirements for transportation fuels.--
                            ``(i) In general.--In the case of any 
                        qualifying clean coal project which is used to 
                        produce qualified transportation fuels, such 
                        project shall be designed such that the cycle-
                        wide carbon dioxide emissions for such fuels 
                        are no greater than half of the average cycle-
                        wide carbon dioxide emissions for comparable 
                        products during 2005, as determined under 
                        regulations prescribed by the Secretary in 
                        consultation with the Secretary of Energy and 
                        the Administrator of the Environmental 
                        Protection Agency.
                            ``(ii) Cycle-wide carbon dioxide 
                        emissions.--For purposes of this subparagraph, 
                        the term `cycle-wide carbon dioxide emissions' 
                        means the total emissions of carbon dioxide in 
                        production and consumption of a product.
                            ``(iii) Comparable products.--For purposes 
                        of this subparagraph, the term `comparable 
                        product' means any transportation fuel derived 
                        from crude oil or coal.
                    ``(D) Requirements for synthetic natural gas.--In 
                the case of any qualifying clean coal project which is 
                used to produce synthetic natural gas, such project 
                shall be designed such that the cycle-wide carbon 
                dioxide emissions for such gas is no greater than half 
                of the average cycle-wide carbon dioxide emissions for 
                such gas during 2005, as determined under regulations 
                prescribed by the Secretary in consultation with the 
                Secretary of Energy and the Administrator of the 
                Environmental Protection Agency. For purposes of this 
                subparagraph, the term `cycle-wide carbon dioxide 
                emissions' means the total emissions of carbon dioxide 
                in production and consumption of a product.
            ``(2) Eligible carbon dioxide capture, transport, and 
        storage property.--The term `eligible carbon dioxide capture, 
        transport, and storage property' means any property--
                    ``(A) which is used to capture, transport, or store 
                carbon dioxide emitted at a qualifying clean coal 
                project, including equipment used to separate and 
                pressurize carbon dioxide for transport (including 
                equipment to operate such equipment),
                    ``(B)(i) the construction, reconstruction, or 
                erection of which is completed by the taxpayer, or
                    ``(ii) which is acquired by the taxpayer if the 
                original use of such property commences with the 
                taxpayer, and
                    ``(C) with respect to which depreciation (or 
                amortization in lieu of depreciation) is allowable.
            ``(3) Qualified transportation fuel.--The term `qualified 
        transportation fuel' means any liquid fuel derived from the co-
        processing of coal and renewable biomass (as defined in section 
        9001(12) of the Food, Conservation, and Energy Act of 2008).
            ``(4) Coal.--The term `coal' means bituminous coal, 
        subbituminous coal, and lignite.
    ``(d) Aggregate Credits.--
            ``(1) In general.--No credit shall be allowed under this 
        section with respect to any qualifying clean coal project 
        unless such project is certified by the Secretary under 
        subsection (e).
            ``(2) Limitation on projects certified.--The Secretary may 
        certify under subsection (e) no more than--
                    ``(A) 20 projects described in subsection 
                (c)(1)(A)(ii)(I), and
                    ``(B) 20 projects described in subsection 
                (c)(1)(A)(ii)(II).
    ``(e) Certification.--
            ``(1) Certification process.--The Secretary, in 
        consultation with the Secretary of Energy and the Administrator 
        of the Environmental Protection Agency, shall establish a 
        certification process to determine if a project meets all 
        criteria and other requirements to be recognized as a 
        qualifying clean coal project.
            ``(2) Feedstock requirements.--After the date of 
        publication by the Secretary of the final certification process 
        referred to in paragraph (1), the Secretary shall allocate the 
        limitation in subsection (d)(2) in equal amounts among--
                    ``(A) projects using bituminous coal as a primary 
                feedstock,
                    ``(B) projects using subbituminous coal as a 
                primary feedstock, and
                    ``(C) projects using lignite as a primary 
                feedstock.
            ``(3) Redistribution.--The Secretary may reallocate credits 
        if the Secretary determines that there is an insufficient 
        quantity of qualifying applications for certification, pending 
        at the time of review, to comply with the feedstock 
        requirements of paragraph (2). The Secretary may conduct an 
        additional program for applications for certification and 
        reallocate available credits without regard to the feedstock 
        requirement which was not satisfied as a result of insufficient 
        applications for certification.
            ``(4) Requirements for applications for certification.--An 
        application for certification shall contain such information as 
        the Secretary may require in order to make a determination to 
        accept or reject the application and establish applicable 
        credit entitlement. Any information contained in the 
        application shall be protected as provided in section 552(b)(4) 
        of title 5, United States Code.
    ``(f) Denial of Double Benefit.--No credit shall be allowed under 
this section for any property for which credit is allowed under 
sections 48A, 48B, or 48C.''.
    (b) Conforming Amendments.--
            (1) Section 46 of such Code (relating to amount of credit) 
        is amended by striking ``and'' at the end of paragraph (5), by 
        striking the period at the end of paragraph (6) and inserting 
        ``, and'', and by adding at the end the following new 
        paragraph:
            ``(7) the qualifying carbon dioxide capture, transport, and 
        storage equipment credit.''.
            (2) Subparagraph (C) of section 49(a)(1) of such Code is 
        amended by striking ``and'' at the end of clause (v), by 
        striking the period at the end of clause (vi) and inserting ``, 
        and'', and by adding after clause (vi) the following new 
        clause:
                            ``(vii) the basis of any qualifying carbon 
                        dioxide capture, transport, and storage 
                        equipment under section 48E.''.
            (3) The table of sections for subpart E of part IV of 
        subchapter A of chapter 1 of such Code is amended by inserting 
        after the item relating to section 48D the following new item:

``Sec. 48E. Qualifying carbon dioxide capture, transport, and storage 
                            equipment credit.''.
    (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. MODIFICATIONS TO CREDIT FOR CARBON DIOXIDE SEQUESTRATION.

    (a) Credit Allowed for Uses Other Than Tertiary Injectants.--
            (1) In general.--Paragraph (2) of section 45Q(a) of the 
        Internal Revenue Code of 1986 is amended to read as follows:
            ``(2) $10 per metric ton of qualified carbon dioxide which 
        is--
                    ``(A) captured by the taxpayer at a qualified 
                facility, and
                    ``(B) either--
                            ``(i) used as a tertiary injectant in a 
                        qualified enhanced oil or natural gas recovery 
                        project and disposed of in secure geological 
                        storage, or
                            ``(ii) converted to a stable form in which 
                        such carbon dioxide is securely and permanently 
                        sequestered and used for a beneficial economic 
                        purpose.''.
            (2) Credit allowed for other secure storage.--Subparagraph 
        (B) of section 45Q(a)(1) of such Code is amended by inserting 
        ``or converted to a stable form in which it is securely and 
        permanently sequestered'' after ``secure geological storage''.
            (3) Securely and permanently sequestered.--Paragraph (2) of 
        section 45Q(c) is amended--
                    (A) by striking all that precedes ``in consultation 
                with the Administrator'' and inserting the following:
            ``(2) Secure geological storage and permanent 
        sequestration.--
                    ``(A) Secure geological storage.--The Secretary'',
                    (B) by striking ``(2)(C)'' and inserting 
                ``(2)(B)(i)'', and
                    (C) by adding at the end the following new 
                subparagraph:
                    ``(B) Secure permanent sequestration.--The 
                Secretary, in consultation with the Administrator of 
                the Environmental Protection Agency, shall establish 
                regulations for determining adequate security measures 
                for the permanent sequestration of carbon dioxide for 
                uses described in paragraph (1)(B) or (2)(B)(ii) of 
                subsection (a) such that the carbon dioxide does not 
                escape into the atmosphere.''.
            (4) Conforming amendment.--Subparagraph (B) of section 
        45Q(1) of such Code is amended by inserting ``or through secure 
        and permanent sequestration'' after ``secure geological 
        storage''.
    (b) Modification to Definition of Qualified Carbon Dioxide.--
Subparagraph (A) of section 45Q(b)(1) of the Internal Revenue Code of 
1986 is amended by striking ``otherwise'' and inserting ``, but for the 
capture and sequestration or conversion to a stable form,''.
    (c) Person Entitled to Credit.--
            (1) In general.--Paragraph (5) of section 45Q(d) of the 
        Internal Revenue Code of 1986 is amended to read as follows:
            ``(5) Credit attributable to taxpayer.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), any credit under this section shall 
                be attributable to the person that captures and 
                physically or contractually ensures the disposal of or 
                the use as a tertiary injectant of the qualified carbon 
                dioxide.
                    ``(B) Transfer of credit.--A taxpayer may transfer 
                the credit under subsection (a) to the person 
                responsible for disposing, converting, or using the 
                qualified carbon dioxide. Such transfer shall only be 
                effective if the taxpayer submits to the Secretary, at 
                such time and in such manner as the Secretary 
                prescribes, a statement concerning the transfer which 
                contains--
                            ``(i) the name, address, and taxpayer 
                        identification number of the taxpayer 
                        transferring the credit,
                            ``(ii) the name, address, and taxpayer 
                        identification number of the taxpayer receiving 
                        the transfer, and
                            ``(iii) such other information relating to 
                        such transfer as the Secretary may require.''.
            (2) Rules.--Not later than 180 days after the date of the 
        enactment of this Act, the Secretary of the Treasury shall 
        prescribe rules relating to the transfer of credits under 
        section 45Q of the Internal Revenue Code of 1986 pursuant to 
        subparagraph (B) section 45Q(d)(5) of such Code, as added by 
        paragraph (1).
    (d) Extension of Credit.--
            (1) Credit allowed for 10-year credit period.--Paragraphs 
        (1)(A) and (2)(A) of section 45Q(a) of the Internal Revenue 
        Code of 1986 are each amended by inserting ``during the 10-year 
        period beginning on the date the carbon capture equipment 
        described in subsection (c)(2) is placed in service'' before 
        the comma at the end.
            (2) Termination.--Paragraph (2) of section 45Q(c) of such 
        Code is amended by inserting ``by the taxpayer before January 
        1, 2018'' before the comma at the end.
            (3) Conforming amendment.--Section 45Q of such Code is 
        amended by striking subsection (e).
    (e) Effective Date.--The amendments made by this section shall 
apply to carbon dioxide captured after the date of the enactment of 
this Act.

SEC. 5. CLEAN ENERGY COAL BONDS.

    (a) In General.--
            (1) Treatment as tax credit bonds.--Subpart I of part IV of 
        subchapter A of chapter 1 of the Internal Revenue Code of 1986 
        (relating to qualified tax credit bonds) is amended by adding 
        at the end the following new section:

``SEC. 54G. CLEAN ENERGY COAL BONDS.

    ``(a) Clean Energy Coal Bond.--For purposes of this subchapter--
            ``(1) In general.--The term `clean energy coal bond' means 
        any bond issued as part of an issue if--
                    ``(A) the bond is issued by a qualified issuer 
                pursuant to an allocation by the Secretary to such 
                issuer of a portion of the national clean energy coal 
                bond limitation under subsection (b)(2),
                    ``(B) 100 percent of the available project proceeds 
                from the sale of such issue are to be used for capital 
                expenditures incurred by qualified borrowers for 1 or 
                more qualified projects,
                    ``(C) the qualified issuer designates such bond for 
                purposes of this section and the bond is in registered 
                form, and
                    ``(D) in lieu of the requirements of section 
                54A(d)(2), the issue meets the requirements of 
                subsection (c).
            ``(2) Qualified project; special use rules.--
                    ``(A) In general.--The term `qualified project' 
                means a qualified clean coal project (as defined in 
                subsection (f)(1)) placed in service by a qualified 
                borrower.
                    ``(B) Refinancing rules.--For purposes of paragraph 
                (1)(B), a qualified project may be refinanced with 
                proceeds of a clean energy coal bond only if the 
                indebtedness being refinanced (including any obligation 
                directly or indirectly refinanced by such indebtedness) 
                was originally incurred by a qualified borrower after 
                the date of the enactment of this section.
                    ``(C) Reimbursement.--For purposes of paragraph 
                (1)(B), a clean energy coal bond may be issued to 
                reimburse a qualified borrower for amounts paid after 
                the date of the enactment of this section with respect 
                to a qualified project, but only if--
                            ``(i) prior to the payment of the original 
                        expenditure, the qualified borrower declared 
                        its intent to reimburse such expenditure with 
                        the proceeds of a clean energy coal bond,
                            ``(ii) not later than 60 days after payment 
                        of the original expenditure, the qualified 
                        issuer adopts an official intent to reimburse 
                        the original expenditure with such proceeds, 
                        and
                            ``(iii) reimbursement is not made later 
                        than 18 months after the date the original 
                        expenditure is paid or the date the project is 
                        placed in service or abandoned, but in no event 
                        more than 3 years after the original 
                        expenditure is paid.
                    ``(D) Treatment of changes in use.--For purposes of 
                paragraph (1)(B), the proceeds of an issue shall not be 
                treated as used for a qualified project to the extent 
                that a qualified borrower takes any action within its 
                control which causes such proceeds not to be used for a 
                qualified project. The Secretary shall prescribe 
                regulations specifying remedial actions that may be 
                taken (including conditions to taking such remedial 
                actions) to prevent an action described in the 
                preceding sentence from causing a bond to fail to be a 
                clean energy coal bond.
    ``(b) Limitation on Amount of Bonds Designated.--
            ``(1) National limitation.--There is a national clean 
        energy coal bond limitation of $5,000,000,000.
            ``(2) Allocation by secretary.--The Secretary shall 
        allocate the amount described in paragraph (1) among qualified 
        projects in such manner as the Secretary determines 
        appropriate.
    ``(c) Special Rules Relating to Expenditures.--
            ``(1) In general.--An issue shall be treated as meeting the 
        requirements of this subsection if, as of the date of issuance, 
        the qualified issuer reasonably expects--
                    ``(A) 100 percent or more of the available project 
                proceeds from the sale of the issue are to be spent for 
                1 or more qualified projects within the 5-year period 
                beginning on the date of issuance of the clean energy 
                bond,
                    ``(B) a binding commitment with a third party to 
                spend at least 10 percent of such available project 
                proceeds from the sale of the issue will be incurred 
                within the 6-month period beginning on the date of 
                issuance of the clean energy bond or, in the case of a 
                clean energy bond the available project proceeds of 
                which are to be loaned to 2 or more qualified 
                borrowers, such binding commitment will be incurred 
                within the 6-month period beginning on the date of the 
                loan of such proceeds to a qualified borrower, and
                    ``(C) such projects will be completed with due 
                diligence and the available project proceeds from the 
                sale of the issue will be spent with due diligence.
            ``(2) Extension of period.--Upon submission of a request 
        prior to the expiration of the period described in paragraph 
        (1)(A), the Secretary may extend such period if the qualified 
        issuer establishes that the failure to satisfy the 5-year 
        requirement is due to reasonable cause and the related projects 
        will continue to proceed with due diligence.
            ``(3) Failure to spend required amount of bond proceeds 
        within 5 years.--To the extent that less than 100 percent of 
        the available project proceeds of such issue are expended by 
        the close of the 5-year period beginning on the date of 
        issuance (or if an extension has been obtained under paragraph 
        (2), by the close of the extended period), the qualified issuer 
        shall redeem all of the nonqualified bonds within 90 days after 
        the end of such period. For purposes of this paragraph, the 
        amount of the nonqualified bonds required to be redeemed shall 
        be determined in the same manner as under section 142.
    ``(d) Reduced Credit Amount.--The annual credit determined under 
section 54A(b) with respect to any clean coal energy bond shall be 70 
percent of the amount so determined without regard to this subsection.
    ``(e) Cooperative Electric Company; Qualified Energy Tax Credit 
Bond Lender; Governmental Body; Qualified Borrower.--For purposes of 
this section--
            ``(1) Cooperative electric company.--The term `cooperative 
        electric company' means a mutual or cooperative electric 
        company described in section 501(c)(12) or section 
        1381(a)(2)(C), or a not-for-profit electric utility which has 
        received a loan or loan guarantee under the Rural 
        Electrification Act.
            ``(2) Clean energy bond lender.--The term `clean energy 
        bond lender' means a lender which is a cooperative which is 
        owned by, or has outstanding loans to, 100 or more cooperative 
        electric companies and is in existence on February 1, 2002, and 
        shall include any affiliated entity which is controlled by such 
        lender.
            ``(3) Public power entity.--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 (as in 
        effect on the date of enactment of this paragraph).
            ``(4) Qualified issuer.--The term `qualified issuer' 
        means--
                    ``(A) a clean energy bond lender,
                    ``(B) a cooperative electric company, or
                    ``(C) a public power entity.
            ``(5) Qualified borrower.--The term `qualified borrower' 
        means--
                    ``(A) a mutual or cooperative electric company 
                described in section 501(c)(12) or 1381(a)(2)(C), or
                    ``(B) a public power entity.
    ``(f) Special Rules Relating to Pool Bonds.--No portion of a pooled 
financing bond may be allocable to any loan unless the borrower has 
entered into a written loan commitment for such portion prior to the 
issue date of such issue.
    ``(g) Other Definitions and Special Rules.--For purposes of this 
section--
            ``(1) Qualified clean coal project.--For purposes of this 
        section, the term `qualified clean coal project' means--
                    ``(A) an atmospheric pollution control facility 
                (within the meaning of section 169(d)(6)),
                    ``(B) a qualifying clean coal project (within the 
                meaning of section 48E(c)(1)), or
                    ``(C) a qualified facility (within the meaning of 
                section 45Q(c)).
            ``(2) Pooled financing bond.--The term `pooled financing 
        bond' shall have the meaning given such term by section 
        149(f)(4)(A).''.
            (2) Bonds not subject to maturity limitation.--Paragraph 
        (5) of section 54A(d) of such Code is amended by adding at the 
        end the following new subparagraph:
                    ``(C) Special rule for clean energy coal bonds.--
                The requirements of this paragraph shall not apply to a 
                clean energy coal bond under section 54G.''.
            (3) Conforming amendments.--
                    (A) Paragraph (1) of section 54A(d) of the Internal 
                Revenue Code of 1986 is amended by striking ``or'' at 
                the end of subparagraph (D), by inserting ``or'' at the 
                end of subparagraph (E), and by inserting after 
                subparagraph (E) the following new subparagraph:
                    ``(F) a clean energy coal bond,''.
                    (B) The table of sections for subpart I of part IV 
                of subchapter A of chapter 1 of the Internal Revenue 
                Code of 1986 is amended by adding at the end the 
                following new item:

``Sec. 54G. Clean energy coal bonds.''.
    (b) Bonds Treated as Specified Tax Credit Bonds.--
            (1) In general.--Section 6431(f)(3)(A) of the Internal 
        Revenue Code of 1986 is amended by striking ``or'' at the end 
        of clause (iii), by striking ``and'' at the end of clause (iv) 
        and inserting ``or'', and by adding at the end the following 
        new clause:
                            ``(v) a clean energy coal bond (as defined 
                        in section 54G), and''.
            (2) Special rule.--Paragraph (2) of section 6431(f) of such 
        Code is amended--
                    (A) by striking ``clause (i) or (ii)'' and 
                inserting ``clause (i), (ii), or (v)'', and
                    (B) by striking the heading and inserting ``Special 
                rule for certain bonds''.
    (c) Effective Date.--The amendments made by this section shall 
apply to bonds issued after the date of the enactment of this Act.
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