[Congressional Record Volume 147, Number 62 (Tuesday, May 8, 2001)]
[Senate]
[Pages S4515-S4516]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. CRAPO (for himself, Mr. Hutchinson, and Mr. Helms):
  S. 845. A bill to amend the Internal Revenue Code of 1986 to include 
agricultural and animal waste sources as a renewable energy resource; 
to the committee on Finance.
  Mr. CRAPO. Mr. President, I rise to introduce legislation that will 
encourage the expansion of an often overlooked domestic energy resource 
that offers a source of revenue for our rural communities and an avenue 
for cleanup of agricultural waste. I am pleased to be joined by co-
sponsors Senator Hutchinson and Senator Helms.
  It has been well-publicized that our country faces mounting 
uncertainty in meeting our energy demands. After years of getting 
little attention, we are now in a period where the development of 
domestic energy resources has reached a crucial point. I support our 
efforts to diversify our energy supply resources to ensure our nation's 
energy security, support our business and agricultural economies, and 
protect our individual consumers. This time of challenge also offers 
great opportunities. One of those is the opportunity to encourage a 
largely untapped resource to provide domestic energy, while also 
promoting the protection of the environment and rural development. I am 
speaking about energy derived from agricultural and animal waste 
sources.
  Electricity from biomass and waste sources using modern technology is 
a renewable resource that can add to our domestic energy supply. The 
process uses manure and waste products that are heated and converted 
into biogas that is burned to generate electricity, which is sold into 
the power grid. This technology is widely accepted in Europe where over 
600 systems are in operation today. In this country, the technology is 
gaining acceptance following numerous successful case studies. This 
process offers farmers an option for cleaning agricultural waste that 
is a known source of groundwater contamination and air pollution. The 
revenue generated from the sale of electricity provides a source of 
income to offset the cleanup costs, while providing important kilowatts 
to the power grid.
  The bill I am introducing today would extend the 1.5 cent per 
kilowatt hour production tax credit that is currently available to 
wind, closed-loop biomass, and poultry waste by making it available to 
all agricultural and animal waste sources.
  There have been other bills introduced that would extend the tax 
credit to additional renewable sources such as solar energy. I 
encourage efforts to broaden the definition of renewable sources and, 
for that reason, I am also proposing an amendment to S. 388, the 
comprehensive national energy bill introduced by Senator Murkowski. The 
amendment would add agricultural and animal waste as a renewable energy 
resource listed under that bill.
  The use of modern technology to generate electricity from waste 
should not be overlooked. The tax credit is a important incentive to 
encourage its wider use. I encourage my colleagues to join me in this 
important initiative. I ask unanimous consent that the text of the bill 
and the amendment be printed in the Record.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

                                 S. 845

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. MODIFICATIONS TO CREDIT FOR ELECTRICITY PRODUCED 
                   FROM RENEWABLE RESOURCES AND EXTENSION TO WASTE 
                   ENERGY.

       (a) Expansion of Qualified Energy Resources.--
       (1) In general.--Section 45(c)(1) of the Internal Revenue 
     Code of 1986 (defining qualified energy resources) is amended 
     by striking subparagraph (C) and inserting the following:
       ``(C) agricultural and animal waste sources.''.
       (2) Definitions.--Section 45(c) of such Code (relating to 
     definitions) is amended by adding at the end the following 
     new paragraph:
       ``(5) Agricultural and animal waste sources.--The term 
     `agricultural and animal waste sources' means all waste heat, 
     steam, and fuels produced from the conversion of agricultural 
     and animal wastes, including by-products, packaging, and any 
     materials associated with the processing, feeding, selling, 
     transporting, and disposal of agricultural and animal 
     products or wastes (such as wood shavings, straw, rice hulls, 
     and other bedding material for the disposition of manure).''.
       (b) Extension and Modification of Placed-In-Service 
     Rules.--Section 45(c)(3) of the Internal Revenue Code of 1986 
     (defining qualified facility) is amended by striking 
     subparagraph (C) and inserting the following:
       ``(C) Agricultural and animal waste facility.--In the case 
     of a facility using agricultural and animal waste to produce 
     electricity, the term `qualified facility' means any facility 
     of the taxpayer which is originally placed in service--
       ``(i) in the case of a facility using poultry waste, after 
     December 31, 1999, and before January 1, 2002, and
       ``(ii) in the case of any other facility, after the date of 
     the enactment of this subparagraph and before July 1, 2011.
       ``(D) Combined production facilities included.--For 
     purposes of this paragraph, the term `qualified facility' 
     shall include a facility using agricultural and animal waste 
     to produce electricity and other biobased products such as 
     chemicals and fuels from renewable resources.
       ``(E) Special rules.--In the case of a qualified facility 
     described in subparagraph (C)--
       ``(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.''.
       (c) Conforming Amendments.--
       (1) The heading for section 45 of the Internal Revenue Code 
     of 1986 is amended by inserting ``and waste energy'' after 
     ``renewable''.
       (2) The item relating to section 45 in the table of 
     sections subpart D of part IV of subchapter A of chapter 1 of 
     such Code is

[[Page S4516]]

     amended by inserting ``and waste energy'' after 
     ``renewable''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to electricity produced after the date of the 
     enactment of this Act.

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