[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[S. 3855 Introduced in Senate (IS)]

111th CONGRESS
  2d Session
                                S. 3855

To amend the Internal Revenue Code of 1986 to repeal the limitation on 
   the issuance of new clean renewable energy bonds and to terminate 
 eligibility of governmental bodies to issue such bonds, and for other 
                               purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           September 28, 2010

Ms. Cantwell (for herself, Mr. Nelson of Nebraska, Mrs. Murray, and Mr. 
   Sanders) 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 repeal the limitation on 
   the issuance of new clean renewable energy bonds and to terminate 
 eligibility of governmental bodies to issue such bonds, 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 ``Clean Renewable Energy Investment 
Act of 2010''.

SEC. 2. NEW CLEAN ENERGY RENEWABLE BONDS.

    (a) Repeal of Limitation on Amount of Bonds Designated.--Section 
54C of the Internal Revenue Code of 1986 is amended by striking 
subsection (c).
    (b) Termination.--Subsection (a) of section 54C of such Code is 
amended by striking ``and'' at the end of paragraph (2), by striking 
the period at the end of paragraph (3), and by adding at the end the 
following new paragraph:
            ``(4) such bond is issued before January 1, 2014.''.
    (c) Rules Relating to Expenditures.--
            (1) In general.--Paragraph (1) of section 54C(a) of such 
        Code is amended by inserting ``and meet the requirements of 
        subsection (c)'' before the comma at the end.
            (2) Requirements.--Section 54C of such Code (as amended by 
        subsection (a) of this section) is amended by inserting after 
        subsection (b) the following new subsection:
    ``(c) Rules Relating to Expenditures.--An issue shall be treated as 
meeting the requirements of this subsection if, as of the date of 
issuance of such issue, the issuer reasonably expects--
            ``(1) 95 percent or more of the available project proceeds 
        to be spent for 1 or more purposes specified in subsection 
        (a)(1) within the 3-year period beginning on such date of 
        issuance, and
            ``(2) a binding commitment with a third party to spend at 
        least 10 percent of such available project proceeds will be 
        incurred within the 6-month period beginning on such date of 
        issuance.''.
    (d) Governmental Bodies Not Eligible.--Section 54C of such Code, as 
amended by the preceding provisions of this section, is amended--
            (1) in subsection (a) by striking ``governmental bodies, 
        public power providers, or cooperative electric companies'' and 
        inserting ``public power providers, tribal utilities, or 
        cooperative electric companies'',
            (2) in subsection (d)(1) by striking ``public power 
        provider, a governmental body, or a cooperative electric 
        company'' and inserting ``public power provider, a tribal 
        utility, or a cooperative electric company'',
            (3) in subsection (d) by striking paragraph (3) and 
        redesignating paragraphs (4), (5), and (6) as paragraphs (3), 
        (4), and (5), respectively, and
            (4) in subsection (d)(6), by striking ``a governmental 
        body,''.
    (e) Tribal Utilities Eligible as Qualified Issuer.--
            (1) In general.--Paragraph (5) of section 54C(d) of such 
        Code (as amended by subsection (d)(3)) is amended by inserting 
        ``a tribal utility,'' after ``bond lender,''.
            (2) Tribal utility defined.--Subsection (d) of section 54C 
        of such Code (as so amended) is amended by adding at the end 
        the following new paragraph:
            ``(6) Tribal utility.--The term `tribal utility' means any 
        enterprise, agency, authority, or instrumentality of any Indian 
        tribe (as defined in section 4 of the Indian Self-Determination 
        and Education Assistance Act (25 U.S.C. 450b(e)) with a service 
        obligation or right under tribal law and which provides 
        electric service to end-users.''.
    (f) Reimbursement With Proceeds of Tax Credit Bonds.--Subparagraph 
(D) of section 54A(d)(2) of such Code is amended by striking ``for 
amounts paid'' and all that follows and inserting ``under rules 
governing obligations the interest on which is excluded from gross 
income by section 103.''.
    (g) Conforming Amendment.--Section 54A(d)(1) of such Code is 
amended by adding at the end the following flush sentence: 
``Subparagraphs (A) and (B) of paragraph (2) shall not apply to an 
issue of new clean renewable energy bonds.''.
    (h) Effective Dates.--
            (1) In general.--Except as provided by paragraph (2), the 
        amendments made by this section shall apply to obligations 
        issued after the date of the enactment of this Act.
            (2) Allocations made before date of enactment.--The 
        amendments made by subsections (b), (d), and (e) of this 
        section shall not apply to bonds issued after the date of the 
        enactment of this Act pursuant to any allocation of new clean 
        renewable energy bond limitation made on or before such date.
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