[Congressional Record Volume 147, Number 51 (Monday, April 23, 2001)]
[Senate]
[Pages S3791-S3792]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. GRASSLEY:
  S. 756. A bill to amend the Internal Revenue Code of 1986 to extend 
and modify the credit for electricity produced from biomass, and for 
other purposes; to the Committee on Finance.
  Mr. GRASSLEY. Mr. President, I rise today to introduce important tax 
legislation to help address the current energy shortage in our country. 
The legislation, entitled the ``Growing Renewable Energy for Emerging 
Needs [GREEN] Act,'' will extend and expand the tax credit for 
homegrown, clean-burning, renewable biomass.
  As many of my colleagues know, I authorized the section 45 credit in 
the Senate and it was included in the Energy Policy Act of 1992. 
However, the tax credit for the production of energy from biomass is 
set to expire on January 1, 2002. For this reason, I am introducing 
legislation to extend and expand the credit to help sustain the many 
benefits derived from biomass.
  Last month, I introduced S. 530 to extend the wind energy portion of 
section 45, which has been extremely successful. The purpose of today's 
bill is to extend and expand the biomass portion of section 45 to 
include technologies such as biomass combustion and cofiring biomass 
with coal-fired facilities. Formerly, section 45 only allowed the use 
of closed-loop biomass.
  The clean, controlled combustion of biomass, which consists of 
sawdust, tree trimmings, agricultural byproducts, and untreated 
construction debris, is another proven, effective technology that 
currently generates numerous pollution avoidance and waste management 
public benefits across the nation.
  In addition, biomass energy displaces more polluting forms of energy 
generation while decreasing our dependence on foreign oil. Our national 
security is currently threatened by a heavy reliance on foreign oil.
  Biomass can also produce enormous economic benefits for rural 
America. Rural economies will grow because of the development of a 
local industry to convert biomass to electricity. Moreover, studies 
show that biomass crops could produce between $2 to $5 billion in 
additional farm income.
  In order to retain the environmental, waste management, and the rural 
employment benefits that we could receive from the existing ``open-
loop'' biomass facilities, my bill rewrites section 45 to allow tax 
credits for clean combustion of wood waste and similar residues in 
these unique facilities.
  Importantly, we have also ensured that the definition of qualifying 
biomass materials is limited to organic, nonhazardous materials that 
are clearly proven to burn cleanly without any pollution risk. Also, to 
allay any concern that biomass plants might burn paper and thus 
possibly jeopardize the amount of paper that is available to be 
recycled, I have specifically excluded paper that is commonly recycled 
from the list of materials that would qualify for the credit.
  I believe this bill provides a common sense combination of current 
and new technologies to help maintain the economic, environmental and 
waste management benefits derived from biomass power. The current 
electricity shortage in California and the soaring prices of home 
heating fuel and natural gas this winter are reasons enough to support 
and accelerate this renewable energy.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

[[Page S3792]]

                                 S. 756

       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 ``Growing Renewable Energy for 
     Emerging Needs (GREEN) Act''.

     SEC. 2. CREDIT FOR ELECTRICITY PRODUCED FROM BIOMASS.

       (a) Extension and Modification of Placed-in-Service 
     Rules.--Paragraph (3) of section 45(c) of the Internal 
     Revenue Code of 1986 is amended--
       (1) by striking subparagraph (B) and inserting the 
     following new subparagraph:
       ``(B) Closed-loop biomass facility.--In the case of a 
     facility using closed-loop biomass to produce electricity, 
     the term `qualified facility' means any facility--
       ``(i) owned by the taxpayer which is originally placed in 
     service after December 31, 1992, and before January 1, 2007, 
     or
       ``(ii) of the taxpayer which is originally placed in 
     service before December 31, 1992, and modified to use closed-
     loop biomass to co-fire with coal before January 1, 2007.'',
       (2) by striking ``2002'' in subparagraph (C) and inserting 
     ``2007'', and
       (3) by adding at the end the following new subparagraphs:
       ``(D) Biomass facilities.--In the case of a facility using 
     biomass (other than closed-loop biomass) to produce 
     electricity, the term `qualified facility' means any facility 
     owned by the taxpayer which is originally placed in service 
     before January 1, 2007.
       ``(E) Special rules.--In the case of a qualified facility 
     described in subparagraph (B)(ii) or (D)--
       ``(i) the 10-year period referred to in subsection (a) 
     shall be treated as beginning no earlier than the date of the 
     enactment of this paragraph, and
       ``(ii) subsection (b)(3) shall not apply to any such 
     facility originally placed in service before January 1, 
     1997.''.
       (b) Biomass Facilities.--
       (1) In general.--Section 45(c)(1) of the Internal Revenue 
     Code of 1986 (defining qualified energy resources) is 
     amended--
       (A) by striking ``and'' at the end of subparagraph (B),
       (B) by striking the period at the end of subparagraph (C) 
     and inserting ``, and'', and
       (C) by adding at the end the following new subparagraph:
       ``(D) biomass (other than closed-loop biomass).''.
       (2) Biomass defined.--Section 45(c) of such Code (relating 
     to definitions) is amended by adding at the end the following 
     new paragraph:
       ``(5) Biomass.--The term `biomass' means any solid, 
     nonhazardous, cellulosic waste material which is segregated 
     from other waste materials and which is derived from--
       ``(A) any of the following forest-related resources: mill 
     residues, precommercial thinnings, slash, and brush, but not 
     including old-growth timber,
       ``(B) solid wood waste materials, including waste pallets, 
     crates, dunnage, manufacturing and construction wood wastes 
     (other than pressure-treated, chemically-treated, or painted 
     wood wastes), and landscape or right-of-way tree trimmings, 
     but not including municipal solid waste (garbage), gas 
     derived from the biodegradation of solid waste, or paper that 
     is commonly recycled, or
       ``(C) agriculture sources, including orchard tree crops, 
     vineyard, grain, legumes, sugar, and other crop by-products 
     or residues.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to electricity produced after the date of the 
     enactment of this Act.
                                 ______