[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[S. 2681 Introduced in Senate (IS)]

<DOC>






115th CONGRESS
  2d Session
                                S. 2681

 To amend the Internal Revenue Code of 1986 to allow a credit against 
            tax for coal-powered electric generation units.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             April 17, 2018

  Mr. Manchin 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 allow a credit against 
            tax for coal-powered electric generation units.

    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 ``Energy Reliability Act of 2018''.

SEC. 2. COAL-POWERED ELECTRIC GENERATION UNIT CREDIT.

    (a) Federal Tax Credit for Coal-Powered Electric Generation 
Units.--Subpart D 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 section:

``SEC. 45T. COAL-POWERED ELECTRIC GENERATION UNIT CREDIT.

    ``(a) In General.--For purposes of section 38, in the case of a 
taxpayer who owns or leases a coal-powered electric generation unit, 
the coal-powered electric generation unit credit determined under this 
section for a taxable year shall be an amount equal to the lesser of 30 
percent of qualified expenses paid or incurred by such taxpayer in such 
year or the product of--
            ``(1) $13, multiplied by
            ``(2) the nameplate capacity rating in kilowatts of such 
        unit.
    ``(b) Coal-Powered Electric Generation Unit.--For purposes of this 
section, the term `coal-powered electric generation unit' means an 
electric generation unit (as defined in section 48A(c)(6)) that--
            ``(1) uses coal to produce not less than 75 percent of the 
        electricity produced by such unit, and
            ``(2) has constructed and installed emissions controls 
        pursuant to--
                    ``(A) the final rule of the Environmental 
                Protection Agency entitled `Rule To Reduce Interstate 
                Transport of Fine Particulate Matter and Ozone (Clean 
                Air Interstate Rule); Revisions to Acid Rain Program; 
                Revisions to the NOX SIP Call' (70 Fed. Reg. 25162 (May 
                12, 2005)) (commonly known as the `Clean Air Interstate 
                Rule'),
                    ``(B) the final rule of the Environmental 
                Protection Agency entitled `Federal Implementation 
                Plans: Interstate Transport of Fine Particulate Matter 
                and Ozone and Correction of SIP Approvals' (76 Fed. 
                Reg. 48208 (August 8, 2011)) (commonly known as the 
                `Cross State Air Pollution Rule'),
                    ``(C) the final rule of the Environmental 
                Protection Agency entitled `National Emission Standards 
                for Hazardous Air Pollutants From Coal- and Oil-Fired 
                Electric Utility Steam Generating Units and Standards 
                of Performance for Fossil-Fuel-Fired Electric Utility, 
                Industrial-Commercial-Institutional, and Small 
                Industrial-Commercial-Institutional Steam Generating 
                Units' (77 Fed. Reg. 9304 (February 16, 2012)) 
                (commonly known as the `Mercury and Air Toxics 
                Standards Rule'),
                    ``(D) the final rule of the Environmental 
                Protection Agency entitled `Regional Haze Regulations 
                and Guidelines for Best Available Retrofit Technology 
                (BART) Determinations' (70 Fed. Reg. 39104 (July 6, 
                2005)) (commonly known as the `Regional Haze 
                regulations'), or
                    ``(E) any other Federal emissions control 
                requirements applicable to an electric generation plant 
                that are equal to or more stringent than the 
                requirements of a rule described in subparagraph (A), 
                (B), (C), or (D).
    ``(c) Qualified Expenses.--For purposes of this section, the term 
`qualified expenses' means amounts paid or incurred for the operation 
or maintenance of a coal-powered electric generation unit, other than 
amounts paid or incurred for coal.
    ``(d) Transfer of Credit.--
            ``(1) Transfer to eligible project partner.--
                    ``(A) In general.--With respect to a credit under 
                subsection (a) for any taxable year, a taxpayer may 
                elect to transfer all or any portion of such credit to 
                any eligible project partner as specified in such 
                election and such eligible project partner, not the 
                taxpayer, shall be entitled to claim the credit (or 
                portion thereof) for the taxable year.
                    ``(B) Election to transfer.--The taxpayer may elect 
                to transfer all or any portion of the credit to an 
                eligible project partner by attaching a statement to 
                the taxpayer's tax return for the taxable year in which 
                the qualified expenses were paid or incurred, providing 
                such information as is necessary for the Secretary to 
                adequately identify the eligible project partner and 
                the amount of the credit being transferred.
            ``(2) Eligible project partner.--For purposes of this 
        subsection, the term `eligible project partner' means, with 
        respect to any coal-powered electric generation unit, any 
        person who--
                    ``(A) is responsible for operating, maintaining, or 
                repairing such unit,
                    ``(B) participates in the provision, including 
                transportation, of coal or other materials and supplies 
                to such unit,
                    ``(C) provides financing for the construction, 
                repair, or operation of such unit, or
                    ``(D) leases such unit.
            ``(3) Special rules.--
                    ``(A) Application to partnerships.--In the case of 
                a credit under subsection (a) which is determined at 
                the partnership level, the term `eligible project 
                partner' shall include any partner of the partnership.
                    ``(B) Taxable year in which credit taken into 
                account.--In the case of any credit (or portion 
                thereof) with respect to which an election is made 
                under paragraph (1), such credit shall be taken into 
                account in the first taxable year of the eligible 
                project partner ending with, or after, the taxpayer's 
                taxable year with respect to which the credit was 
                determined.
    ``(e) Basis Adjustment.--For purposes of this subtitle, if a credit 
is allowed under this section with respect to any coal-powered electric 
generation unit, the basis of such property shall be reduced by the 
amount of the credit so allowed.
    ``(f) Termination.--This section shall apply to taxable years 
beginning after December 31, 2017, and ending before January 1, 
2023.''.
    (b) Assessment by Federal Energy Regulatory Commission.--
            (1) In general.--In the case of any coal-powered electric 
        generation unit which has claimed a credit under section 45T of 
        the Internal Revenue Code of 1986 (as added by subsection (a)), 
        the Federal Energy Regulatory Commission shall require the 
        applicable reliability coordinator to conduct an assessment 
        analyzing the reliability and resilience attributes offered by 
        such unit to the regional grid in which it is located, with 
        such assessment to be completed not later than April 1, 2023.
            (2) Reporting.--Not later than June 1, 2023, the Federal 
        Energy Regulatory Commission shall report to the relevant 
        Congressional committees--
                    (A) the results of the assessments described under 
                paragraph (1); and
                    (B) a recommendation as to whether the credit under 
                section 45T of the Internal Revenue Code of 1986 should 
                be amended so as to apply to taxable years beginning 
                after December 31, 2022.
            (3) Definitions.--In this subsection:
                    (A) Applicable reliability coordinator.--The term 
                ``applicable reliability coordinator'' means the 
                Reliability Coordinator of the Electric Reliability 
                Organization (as defined in section 215(a) of the 
                Federal Power Act (16 U.S.C. 2824o(a))) for the region 
                in which a coal-powered electric generation unit which 
                has claimed a credit under section 45T of the Internal 
                Revenue Code of 1986 is located.
                    (B) Relevant congressional committees.--The term 
                ``relevant Congressional committees'' means--
                            (i) the Committee on Finance of the Senate;
                            (ii) the Committee on Ways and Means of the 
                        House of Representatives;
                            (iii) the Committee on Energy and Natural 
                        Resources of the Senate; and
                            (iv) the Committee on Energy and Commerce 
                        of the House of Representatives.
    (c) Conforming Amendment.--Section 501(c)(12)(I) is amended by 
inserting ``or 45T(d)(1)'' after ``section 45J(e)(I)''.
    (d) Credit To Be Part of General Business Credit.--
            (1) In general.--Section 38(b) of the Internal Revenue Code 
        of 1986 is amended by striking ``plus'' at the end of paragraph 
        (36), by striking the period at the end of paragraph (37) and 
        inserting ``, plus'', and by adding at the end the following 
        new paragraph:
            ``(38) the coal-powered electric generation unit credit 
        determined under section 45T(a).''.
            (2) Credit allowed against alternative minimum tax.--
        Subparagraph (B) of section 38(c)(4) of the Internal Revenue 
        Code of 1986 is amended--
                    (A) by redesignating clauses (x), (xi), and (xii) 
                as clauses (xi), (xii), and (xiii), respectively; and
                    (B) by inserting after clause (ix) the following 
                new clause:
                            ``(x) the credit determined under section 
                        45T,''.
    (e) Clerical Amendment.--The table of sections for subpart D of 
part IV of subchapter A of chapter 1 is amended by adding at the end 
the following new item:

``Sec. 45T. Coal-powered electric generation unit credit.''.
                                 <all>