[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[S. 2288 Introduced in Senate (IS)]
113th CONGRESS
2d Session
S. 2288
To amend the Internal Revenue Code of 1986 to expand existing tax
credits to encourage the capture, utilization, and sequestration of
carbon dioxide.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
May 5, 2014
Mr. Rockefeller 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 expand existing tax
credits to encourage the capture, utilization, and sequestration of
carbon dioxide.
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 ``Expanding Carbon Capture through
Enhanced Oil Recovery Act of 2014''.
SEC. 2. EXPANSION OF TAX CREDIT FOR CAPTURE, UTILIZATION, AND
SEQUESTRATION OF CARBON DIOXIDE.
(a) Technical Amendment.--Section 45Q of the Internal Revenue Code
of 1986 is amended by striking the section heading and inserting the
following:
``SEC. 45Q-1. STANDARD CARBON DIOXIDE SEQUESTRATION CREDIT.''.
(b) Expansion of Carbon Dioxide Sequestration Credit.--Subpart D of
part IV of subchapter A of chapter 1 of the Internal Revenue Code of
1986 is amended by inserting after section 45Q-1, as redesignated by
subsection (a), the following new section:
``SEC. 45Q-2. COMPETITIVELY BID CARBON DIOXIDE SEQUESTRATION CREDIT.
``(a) Allowance of Credit.--
``(1) In general.--For purposes of section 38, the carbon
dioxide sequestration credit determined under this section for
any taxable year is equal to the amount determined under
subsection (c)(2) that is allocated to the qualified facility
and certified for such year for the capture, compression, and
transport of qualified carbon dioxide.
``(2) Credit claimed by taxpayer who captures, uses, and
disposes of carbon dioxide.--Except as provided in paragraph
(3) and pursuant to such requirements as are determined
appropriate by the Secretary, the credit allowed under this
section shall be attributable to the taxpayer who captured,
used (or contracted for use), and disposed (or contracted for
disposal) of the qualified carbon dioxide.
``(3) Election to allow credit to be claimed by taxpayer
who uses and disposes of carbon dioxide.--A taxpayer described
in paragraph (2) may elect, pursuant to such requirements as
are determined appropriate by the Secretary, to permit the
credits allowed under this section to be attributable to the
person who used and disposed of the qualified carbon dioxide.
``(b) General Requirements.--
``(1) In general.--Not later than 12 months after the date
of the enactment of this section and after providing
opportunity for public notice and comment, the Secretary, in
consultation with the Secretary of Energy, shall establish a
process for annual competitive bidding for carbon dioxide
sequestration credits under this section that includes the
following:
``(A) Establishment of individual project tranches
for allocation of carbon dioxide sequestration credits
to different forms of qualified projects.
``(B) Annual solicitation of bids for allocation of
carbon dioxide sequestration credits for qualified
projects within each individual project tranche.
``(C) Allocation of credits, on a per project
basis, for the applicable crediting period.
``(D) Allocation of credits in a manner that
ensures a net increase in revenue for the Federal
Government over a reasonable period of time (as
determined by the Secretary).
``(E) Establishment of procedures for certifying
qualified projects that have received an allocation of
carbon dioxide sequestration credits.
``(2) Purpose.--The purpose of this section is--
``(A) to reduce the incremental cost of carbon
dioxide capture, compression, and transport,
``(B) to accelerate the deployment and advancement
of technologies that capture carbon dioxide,
``(C) to significantly increase domestic oil
production through expansion of enhanced oil recovery
using anthropogenic carbon dioxide,
``(D) to reduce the amount of anthropogenic carbon
dioxide that is released into the atmosphere and
contributing to climate change, and
``(E) to produce a net increase in revenues for the
Federal Government over a reasonable period of time
from additional tax revenue and royalties collected on
oil recovered through qualified enhanced oil recovery
projects.
``(c) Annual Competitive Bidding and Allocation of Credits.--
``(1) Application process.--
``(A) In general.--For purposes of the annual
competitive bidding process under this section, the
Secretary shall--
``(i) solicit bids for allocations of
carbon dioxide sequestration credits from
applications for qualified projects within each
individual project tranche (as described in
subparagraph (C)), and
``(ii) require that an applicant submitting
a bid for carbon dioxide sequestration credits
for a qualified project--
``(I) be limited to bidding within
a single project tranche for the
project, and
``(II) include as part of their
bid--
``(aa) subject to
subparagraph (D), the proposed
dollar amount of the carbon
dioxide sequestration credit
per metric ton of qualified
carbon dioxide, and
``(bb) the projected metric
tonnage of qualified carbon
dioxide associated with the
project over the crediting
period (as defined in
subsection (f)(4)).
``(B) Application requirements.--An application
under subparagraph (A) shall contain such information
as the Secretary may require in order to make a
determination regarding an allotment of carbon dioxide
sequestration credits. Any information contained in the
application shall be protected as provided in section
552(b)(4) of title 5, United States Code.
``(C) Project tranches.--The Secretary shall
establish 3 individual project tranches for qualified
projects in each of the following categories:
``(i) Electric power projects (as described
in subsection (f)(6)).
``(ii) First-tranche industrial projects
(as described in subsection (f)(8)).
``(iii) Second-tranche industrial projects
(as described in subsection (f)(15)).
``(D) Per ton minimum and maximum.--The Secretary,
in consultation with the Secretary of Energy, shall
establish minimum and maximum dollar amounts for the
proposed dollar amount of the carbon dioxide
sequestration credit per metric ton of qualified carbon
dioxide in each project tranche.
``(2) Allocation of credits.--
``(A) In general.--Following the receipt of bids
pursuant to the application process described in
paragraph (1), the Secretary, in consultation with the
Secretary of Energy, shall allocate carbon dioxide
sequestration credits to qualified projects with each
project tranche.
``(B) Allocation to lowest bidder.--The Secretary
shall allocate the carbon dioxide sequestration credits
to qualified projects on the basis of the proposed
dollar amount for the carbon dioxide sequestration
credit per metric ton of qualified carbon dioxide
contained in the bid submitted by the applicant, with
credits to be allocated in the order of the lowest
submitted bid.
``(C) Amount allocated per qualified project.--
``(i) In general.--Subject to clause (ii),
the amount of the carbon dioxide sequestration
credit allocated to a qualified project shall
be equal to the product of--
``(I) subject to paragraph (1)(D),
the proposed dollar amount of the
carbon dioxide sequestration credit per
metric ton of qualified carbon dioxide
(as proposed pursuant to paragraph
(1)(A)(ii)(II)(aa)), and
``(II) subject to clause (iii), the
projected metric tonnage of qualified
carbon dioxide associated with the
project over the crediting period (as
projected pursuant to paragraph
(1)(A)(ii)(II)(bb)).
``(ii) Readjustment of credit amount based
on crude oil price.--For each crediting year
during the crediting period, the amount of the
carbon dioxide sequestration credit shall be
equal to the product of--
``(I) the amount of the credit, as
determined under clause (i) in the
allocation year, and
``(II) the quotient of--
``(aa) the annual average
West Texas Intermediate Crude
Oil price (per 42-gallon
barrel) for the year in which
the bid for carbon dioxide
sequestration credits was made,
divided by
``(bb) the annual average
West Texas Intermediate Crude
Oil price (per 42-gallon
barrel) for the applicable
crediting year.
``(iii) Limitation for certain projects.--
For purposes of determining the amount of
carbon dioxide sequestration credits allocated
to a industrial project described in subsection
(f)(14)(B)(ii) or an electric power project
described in subsection (f)(14)(B)(iii), the
projected metric tonnage of qualified carbon
dioxide associated with the project over the
crediting period shall not be greater than the
product of--
``(I) 1,000,000 metric tons, and
``(II) the number of crediting
years in the crediting period.
``(D) Maximum level of credits.--
``(i) In general.--Subject to clause (ii),
the total amount of carbon dioxide
sequestration credits allocated to all
qualified projects within each project tranche
shall not exceed the maximum amount as
established for the applicable year, as
follows:
``(I) Electric power projects.--The
amount of carbon dioxide sequestration
credits allotted to electric power
projects shall not exceed--
``(aa) for any allocation
year during the period between
the first annual competitive
bidding process and the third
annual competitive bidding
process, $1,350,000,000,
``(bb) for any allocation
year during the period between
the fourth annual competitive
bidding process and the seventh
annual competitive bidding
process, $2,700,000,000,
``(cc) for the allocation
year in which the eighth annual
competitive bidding process
occurs, $4,050,000,000,
``(dd) for the allocation
year in which the ninth annual
competitive bidding process
occurs, $5,400,000,000, and
``(ee) for the allocation
year in which the tenth annual
competitive bidding process
occurs and each subsequent
allocation year,
$6,750,000,000.
``(II) First-tranche industrial
projects.--The amount of carbon dioxide
sequestration credits allotted to
first-tranche industrial projects for
any allocation year shall not exceed
$400,000,000.
``(III) Second-tranche industrial
projects.--The amount of carbon dioxide
sequestration credits allotted to
second-tranche industrial projects
shall not exceed--
``(aa) for any allocation
year during the period between
the first annual competitive
bidding process and the third
annual competitive bidding
process, $300,000,000, and
``(bb) for the allocation
year in which the fourth annual
competitive bidding process
occurs and each subsequent
allocation year, $600,000,000.
``(ii) Rollover of unallocated credit
amounts.--
``(I) In general.--For purposes of
clause (i), the maximum amount of
carbon dioxide sequestration credits
available to be allocated to all
qualified projects within each project
tranche for any applicable allocation
year shall be increased by the amount
of unallocated credits within such
tranche for the preceding year.
``(II) Unallocated credits.--For
purposes of this clause, the amount of
unallocated credits within a project
tranche for an applicable allocation
year shall be equal to the difference
between--
``(aa) the applicable
maximum amount of carbon
dioxide sequestration credits
available to be allocated to
all qualified projects within
the project tranche for such
year, and
``(bb) the total amount of
carbon dioxide sequestration
credits allocated to all
qualified projects within the
project tranche for such year.
``(iii) Total amount provided to qualified
project for crediting period to be counted in
allocation year.--For purposes of determining
the total amount of carbon dioxide
sequestration credits allocated in an
applicable allocation year under this
subparagraph, the total amount allocated to a
qualified project for all crediting years
during the crediting period shall be treated as
a single allocation for the allocation year.
``(d) Certification.--
``(1) Certification process.--Not later than 90 days after
a carbon dioxide sequestration credit has been allocated to a
qualified project, the Secretary shall certify the amount of
the credit that has been allocated and that the applicant has
provided sufficient documentation and qualifying evidence to
demonstrate that--
``(A) for a qualified project described in
subsection (f)(14)(B)(i), the project will be
constructed and operated in accordance with the
requirements under this section during the crediting
period, or
``(B) for a qualified project described in clause
(ii) or (iii) of subsection (f)(14)(B), the project
will operate in accordance with the requirements under
this section during the crediting period.
``(2) Documentation.--The Secretary, after providing
opportunity for public notice and comment, shall establish
specifications for documentation required under paragraph (1),
which shall include sufficient evidence that--
``(A) the applicant has established a plan or
entered into a binding contract for disposal of all
qualified carbon dioxide,
``(B) for a qualified project described in
subsection (f)(14)(B)(i), the applicant has established
a plan for timely construction, installation, and
operation of carbon capture equipment, and
``(C) for a qualified project described in clause
(ii) or (iii) of subsection (f)(14)(B), the project has
received assistance or has been allocated funding
pursuant to the requirements under such clauses.
``(3) Qualifying evidence.--For purposes of paragraph (1),
the term `qualifying evidence' means--
``(A) the execution of a binding commitment (which
may be subject to customary closing conditions) by an
appropriate entity (such as a lender or the board of
directors of the entity that owns the qualified
project) to provide adequate financing for construction
of the project and installation of the necessary carbon
capture equipment,
``(B) the execution of a binding commitment by the
applicant to execute a surety bond, in such amount as
is determined appropriate by the Secretary, not later
than 2 years after the date the Secretary certifies the
qualified project under this subsection, or
``(C) for purposes of an electric power project,
the execution of an authorization--
``(i) by the appropriate State agency or
regulatory authority to permit recovery of the
costs related to construction of the qualified
project and installation of the necessary
carbon capture equipment through imposition of
a surcharge on the retail consumers of the
electric utility that owns such project, or
``(ii) by the State legislature to permit
recovery of the costs related to construction
of the qualified project and installation of
the necessary carbon capture equipment through
imposition of a surcharge on the retail
consumers of any electric utility that is
required, pursuant to State law, to purchase
some or all of the net electrical output from
the qualified project.
``(4) Revocation of certification.--
``(A) Materially inaccurate representation.--The
Secretary may refuse to issue a certification or may
revoke a certification previously issued to a qualified
project if the Secretary determines that the applicant
made a materially inaccurate representation with
respect to the documentation or evidence submitted by
the applicant pursuant to the requirements under this
subsection.
``(B) Failure to begin construction or place
equipment in service.--The Secretary shall revoke a
certification previously issued to a qualified project
if--
``(i) construction of the project has not
begun within 2 years after the date of
certification, or
``(ii) subject to subparagraph (C), the
project has not placed in service the required
carbon capture equipment--
``(I) in the case of a project that
proposed to retrofit or upgrade its
existing carbon capture equipment to
increase carbon capture capacity,
within 3 years after the date of
certification, or
``(II) in the case of a project
that proposed construction of a new
facility, within 5 years after the date
of certification.
``(C) Extensions.--
``(i) First extension.--An applicant that
has failed to place in service the required
carbon capture equipment by the applicable
dates described in subparagraph (B)(ii) may
receive an extension of up to 180 days before
revocation of certification, provided--
``(I) that the applicant request an
extension not later than 90 days before
the applicable date under subparagraph
(B)(ii), and
``(II) barring construction
disruptions beyond the control of the
applicant, that the applicant maintains
a continuous program of construction
that involves continuing physical work
of a significant nature, as determined
by the Secretary.
``(ii) Second extension.--An applicant that
has failed to place in service the required
carbon capture equipment before expiration of
an extension granted under clause (i) may
receive an additional extension of up to 180
days before revocation of certification,
provided--
``(I) that the applicant request
the additional extension not later than
90 days before expiration of the
extension granted under clause (i), and
``(II) barring construction
disruptions beyond the control of the
applicant, that the applicant maintains
a continuous program of construction
that involves continuing physical work
of a significant nature, as determined
by the Secretary.
``(D) Begin construction.--For purposes of
subparagraph (B)(i), construction of a qualified
project begins when--
``(i) physical work of a significant nature
has begun, or
``(ii) the applicant pays or incurs 5
percent or more of the total cost of the
project.
``(5) Reallocation.--
``(A) In general.--Any carbon dioxide sequestration
credits that have been allocated to a qualified project
that does not receive certification, or has had its
certification revoked, shall be rescinded, with the
amount of such credits to be made available for
reallocation pursuant to the process described under
subsection (c) and any additional requirements as are
determined appropriate by the Secretary.
``(B) Recapture of credit.--The Secretary shall
provide for recapturing the benefit of any credit
allotted to a qualified project that does not receive
certification, or has had its certification revoked.
``(6) Public disclosure and annual reports.--
``(A) Disclosure of certification or revocation.--
Not later than 30 days after issuing a certification or
revocation under this subsection, the Secretary shall
publicly disclose--
``(i) the amount of the credit associated
with the certification or revocation, and
``(ii) a description of the qualified
projected associated with such certification or
revocation.
``(B) Annual report.--The Secretary shall annually
publish a report regarding the carbon dioxide
sequestration credits allowed under this section,
including the amount of credits that--
``(i) have been certified under this
subsection, and
``(ii) are available for allocation during
the next annual competitive bidding process
within each project tranche.
``(e) Review and Modification.--
``(1) External review.--The Secretary, through such methods
as are determined appropriate, shall establish an external
review of the annual competitive bidding process by a panel of
independent experts to--
``(A) propose recommendations to--
``(i) improve the annual competitive
bidding process,
``(ii) ensure the transparency,
effectiveness, and efficiency of such process,
and
``(iii) ensure that the purposes described
in subsection (b)(2) are being achieved through
such process, and
``(B) for purposes of a review described in
paragraph (2)(B), evaluate the impact of the annual
competitive bidding process on incremental oil
production and Federal revenues.
``(2) Requirements for external review.--The review process
described in paragraph (1) shall be completed not later than--
``(A) 180 days prior to the fourth annual
competitive bidding process after the date of the
enactment of this section, and
``(B) every four years after the previous review
under this subsection.
``(3) Modification.--Following any review completed under
this subsection, the Secretary, in consultation with the
Secretary of Energy, may modify the annual competitive bidding
process to adopt recommendations included in the review and
ensure that the purposes described in subsection (b)(2) are
being achieved through such process, including adjustment of
the minimum and maximum dollar amounts for the proposed dollar
amount of the carbon dioxide sequestration credit per metric
ton of qualified carbon dioxide, as established under
subsection (c)(1)(D).
``(4) Revenue determinations.--
``(A) In general.--Not later than 7 years after the
date of the enactment of this section, and every 4
years thereafter, the Secretary, in consultation with
the Chairman of the Securities and Exchange Commission
and the Secretary of Energy, shall conduct a study to
determine--
``(i) the actual and projected increase in
Federal revenues that is attributable to
increases in oil production from enhanced oil
recovery methods using qualified carbon dioxide
that is captured from qualified projects, and
``(ii) the actual and projected decrease in
Federal revenues that is attributable to the
credits allowed under this section.
``(B) Report to congress.--If the Secretary
determines that the projected decrease in revenues
described in clause (ii) of subparagraph (A) is greater
than the projected increase in revenues described in
clause (i) of such subparagraph, the Secretary shall
submit to Congress a report that provides a detailed
analysis of the projections and recommendations for
further legislative or administrative action.
``(f) Definitions.--In this section:
``(1) Allocation year.--The term `allocation year' means
the year in which the Secretary allocates carbon dioxide
sequestration credits to qualified projects.
``(2) Annual capture capacity.--The term `annual capture
capacity' means the average annual amount of qualified carbon
dioxide that is projected to be captured, compressed, and
transported over the crediting period.
``(3) Carbon capture equipment.--The term `carbon capture
equipment' means equipment to capture and pressurize qualified
carbon dioxide.
``(4) Crediting period.--The term `crediting period' means
the period, for up to 10 crediting years (as described in
paragraph (5)), subsequent to--
``(A) for a qualified project described in
paragraph (14)(B)(i), the date on which the carbon
capture equipment is placed into service, or
``(B) for a qualified project described in clause
(ii) or (iii) of paragraph (14)(B), the date on which
the project is certified under subsection (d).
``(5) Crediting year.--The term `crediting year' means a
year during the crediting period in which the taxpayer may
claim the carbon dioxide sequestration credit.
``(6) Electric power project.--
``(A) In general.--The term `electric power
project' means a project, including a polygeneration
project, that--
``(i) subject to subparagraph (B), uses
coal or petroleum residuals as feedstock and
has a post-carbon capture equivalent emissions
rate that is equal to or less than 780 pounds
per megawatt hour under normal operating
conditions, or
``(ii) subject to subparagraph (B), uses
natural gas for greater than 50 percent of its
feedstock and has a post-carbon capture
equivalent emissions rate that is equal to or
less than 400 pounds per megawatt hour under
normal operating conditions.
``(B) Emissions reductions.--Beginning with the
annual competitive bidding process that occurs 5 years
after the initial annual competitive bidding process,
and every 5 years thereafter, the applicable post-
carbon capture equivalent emissions rate under clauses
(i) and (ii) of subparagraph (A) shall be reduced by 15
percent from the applicable rate for the preceding 5-
year period, provided that the Secretary has
determined, in consultation with the Secretary of
Energy, that such reduction is both technologically and
economically feasible.
``(7) Energy output.--The term `energy output' means the
total amount of chemical and thermal energy generated by the
conversion of a feedstock.
``(8) First-tranche industrial project.--
``(A) In general.--The term `first-tranche
industrial project' means an industrial project that
employs 1 or more of the following processes:
``(i) Natural gas processing.
``(ii) Fermentation.
``(iii) Ammonia production.
``(iv) Existing gasification of--
``(I) coal,
``(II) petroleum residuals,
``(III) biomass, or
``(IV) waste streams.
``(B) Existing gasification.--For purposes of this
paragraph, the term `existing gasification' means a
gasification process used by an industrial project that
has been placed in service on or before the date on
which the applicant submits a bid for an allocation of
carbon dioxide sequestration credits.
``(9) Industrial project.--The term `industrial project'
means a project for which the electrical power output is 50
percent or less of the total energy output of such project.
``(10) Polygeneration project.--The term `polygeneration
project' means a project--
``(A) that produces both electricity and another
marketable product, such as chemicals or alternative
liquid or gaseous fuels,
``(B) that is able to supply not less than 150
megawatts of electricity for sale to a power
distribution system, and
``(C) for which greater than 50 percent of the
energy output from the gasification process is provided
to the power block.
``(11) Power block.--The term `power block' means a steam
turbine electric generating unit or a gas turbine combined
cycle unit in an electric power project (including a
polygeneration project).
``(12) Qualified carbon dioxide.--
``(A) In general.--The term `qualified carbon
dioxide' means carbon dioxide that is--
``(i) captured from a source described in
subparagraph (B),
``(ii) used, or contracted for use, by the
taxpayer as a tertiary injectant in a qualified
enhanced oil recovery project, and
``(iii) disposed of, or contracted for
disposal, by the taxpayer in secure geological
storage.
``(B) Sources of qualified carbon dioxide.--The
sources described in this subparagraph are as follows:
``(i) Electric power generation.
``(ii) Chemical production.
``(iii) Gasification of coal.
``(iv) Petroleum residuals.
``(v) Biomass and waste streams.
``(vi) Natural gas processing.
``(vii) Fermentation.
``(viii) Clinker production.
``(ix) Fluidized catalytic cracking and
other refinery processes.
``(x) Steel and aluminum production.
``(xi) Mining and manufacturing.
``(13) Qualified enhanced oil recovery project.--The term
`qualified enhanced oil recovery project' means any project--
``(A) which involves the use of qualified carbon
dioxide as a tertiary injectant (in accordance with
sound engineering principles) and which can reasonably
be expected to result in more than an insignificant
increase in the amount of crude oil which will
ultimately be recovered, and
``(B) which is located within the United States
(within the meaning of section 638(1)).
``(14) Qualified project.--
``(A) In general.--The term `qualified project'
means a project--
``(i) described in subparagraph (B), and
``(ii) at which carbon capture equipment is
placed in service to capture qualified carbon
dioxide from 1 or more sources described in
paragraph (12)(B) within a single project
tranche.
``(B) Categories of projects.--The projects
described in this subparagraph are as follows:
``(i) A project that captures qualified
carbon dioxide using carbon capture equipment
that is placed in service after December 31,
2014, including retrofits or upgrades of
existing carbon capture equipment that
increases carbon capture capacity.
``(ii) An electric power project that--
``(I) received assistance under
subtitle A of title IV of the Energy
Policy Act of 2005 (42 U.S.C. 15961 et
seq.), and
``(II) captures qualified carbon
dioxide using carbon capture equipment
that was placed in service before
December 31, 2014.
``(iii) An electric power project or an
industrial project that--
``(I) was allocated funding by the
Department of Energy for large-scale
carbon capture and sequestration
projects from the amount appropriated
for fossil energy research and
development under title IV of division
A of the American Recovery and
Reinvestment Act of 2009 (Public Law
111-5, 123 Stat. 139), and
``(II) captures qualified carbon
dioxide using carbon capture equipment
that was placed in service before
December 31, 2014.
``(15) Second-tranche industrial project.--
``(A) In general.--The term `second-tranche
industrial project' means an industrial project that
employs 1 or more of the following processes:
``(i) New-build gasification of--
``(I) coal,
``(II) petroleum residuals,
``(III) biomass, or
``(IV) waste streams.
``(ii) A refinery for production of cement,
steel, or iron.
``(iii) Hydrogen production.
``(B) New-build gasification.--For purposes of this
paragraph, the term `new-build gasification' means a
gasification process used by an industrial project that
is placed in service after the date on which the
applicant submits a bid for an allocation of carbon
dioxide sequestration credits.
``(16) Secure geological storage.--The term `secure
geological storage' has the same meaning given to such term
under section 45Q-1(d)(2).
``(g) Denial of Double Benefit.--A credit shall not be allowed
under this section for any carbon dioxide for which a credit is allowed
under section 45Q-1.''.
(c) Conforming Amendments.--
(1) Table of sections.--The table of sections for subpart D
of part IV of subchapter A of chapter 1 of such Code is amended
by striking the item relating to section 45Q and inserting the
following new items:
``Sec. 45Q-1. Standard carbon dioxide sequestration credit.
``Sec. 45Q-2. Competitively bid carbon dioxide sequestration credit.''.
(2) General business credit.--Section 38(b) of such Code is
amended--
(A) by striking paragraph (34),
(B) by redesignating paragraphs (35) and (36) as
paragraphs (36) and (37), and
(C) by inserting after paragraph (33) the following
new paragraphs:
``(34) the standard carbon dioxide sequestration credit
determined under section 45Q-1(a),
``(35) the competitively bid carbon dioxide sequestration
credit determined under section 45Q-2(a),''.
(3) Denial of double benefit.--Section 45Q-1(d) of such
Code is amended by adding at the end the following new
paragraph:
``(8) Denial of double benefit.--A credit shall not be
allowed under this section for any carbon dioxide for which a
credit is allowed under section 45Q-2.''.
(d) Effective Date.--The amendments made by this section shall
apply to carbon dioxide captured after December 31, 2014.
<all>