[Congressional Record Volume 156, Number 103 (Tuesday, July 13, 2010)]
[Senate]
[Pages S5790-S5791]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Ms. MURKOWSKI:
  S. 3571. A bill to extend certain Federal benefits and income tax 
provisions to energy generated by hydropower resources; to the 
Committee on Finance.
  Ms. MURKOWSKI. Mr. President, today I introduce the Hydropower 
Renewable Energy Development Act of 2010. This is legislation to extend 
certain benefits and income tax provisions to energy generated by 
hydropower resources.
  We have an incredible amount of hydropower potential in my home State 
of Alaska. To date, we have almost 50 hydropower projects--in a range 
of sizes from the 126-megawatt Bradley Lake project to the 7-kilowatt 
Walsh Creek project--that produce about 24 percent of the State's 
electricity needs. Alaska is proof that the hydropower resource is not 
tapped out--not even close. Currently, there are 32 additional 
hydropower projects, just in Southeast, that are either under 
construction or on the drawing boards. Statewide there are another 200 
areas that have been identified as promising sites for lake taps, run 
of river, pumped storage and even new hydroelectric reservoirs. With 
the proper financing, we could keep a dozen hydro construction 
companies fully employed in the State for a decade or even longer. That 
is just in Alaska. There are tremendous opportunities in each and every 
State to further develop this clean energy alternative.
  Hydropower, by definition, is a renewable resource. It produces no 
carbon emissions and through rainfall and melting snowpacks it is able 
to be replenished. Yet there are some who would deny this important 
classification to the hydropower resource. The Hydropower Renewable 
Energy Development Act of 2010 directs that the generation of 
hydroelectric power be treated as a ``renewable'' resource for purposes 
of any Federal program or standard. This reclassification of 
hydroelectric generation should help to incent the further production 
of this important and often undervalued resource.
  Next, the bill provides parity treatment for hydropower resources in 
the Production Tax Credit, PTC. Currently, companies that generate 
wind, solar, geothermal, and ``closed-loop'' biomass systems are 
eligible for the PTC which provides a 2.1 cent per kilowatt-hour, kWh, 
benefit for the first 10 years of a renewable energy facility's 
operation. Other technologies, such as incremental hydropower, certain 
generation at non-power facilities, and wave and tidal receive a lesser 
value tax credit of 1.0 cent per kWh. The Hydropower Renewable Energy 
Development Act of 2010 eliminates the distinction between the two 
categories so that all qualified hydropower resources receive the full 
PTC credit. The bill further expands upon the types of hydropower 
resources that can qualify for the PTC, allowing new hydro generation, 
small hydropower under 50 megawatts, lake taps, and pumped storage to 
qualify as well.
  The Hydropower Renewable Energy Development Act of 2010 also carries 
this expanded qualification of hydropower to the Clean Renewable Energy 
Bonds, CREBS, program. Because non-profits like rural electric 
cooperatives and public power providers are not eligible for the PTC 
due to their tax-exempt status, CREBS was created to encourage these 
entities to undertake renewable energy development as well. This 
program has been wildly popular and has been oversubscribed since its 
inception. There are endless possibilities for increased hydropower 
production by electric cooperatives and public power providers and they 
should be given the proper financial incentive to do so.
  I ask my colleagues to support this hydropower tax legislation. The 
further development of this untapped renewable resource will help us 
meet our clean energy goals through the generation of carbon-free, 
baseload power. At a time of record unemployment, the addition of 
hydropower capacity throughout the Nation will lead to hundreds of 
thousands of good paying, domestic jobs.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 3571

       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 ``Hydropower Renewable Energy 
     Development Act of 2010''.

     SEC. 2. HYDROELECTRIC ENERGY TREATED AS RENEWABLE ENERGY.

       Notwithstanding any other provision of law or regulation, 
     for purposes of any Federal program or standard, the term 
     ``renewable energy'' shall include hydroelectric energy 
     generated in the United States by a hydroelectric facility, 
     including electric power produced by efficiency improvements 
     and capacity additions, generation added to nonpower dams, 
     conduits, pumped storage facilities, marine and hydrokinetic 
     resources, and conventional hydropower.

     SEC. 3. PRODUCTION TAX CREDIT FOR HYDROPOWER RESOURCES.

       (a) In General.--Subparagraph (A) of section 45(c)(8) of 
     the Internal Revenue Code of 1986 is amended--
       (1) by striking ``and'' at the end of clause (i),
       (2) by striking the period at the end of clause (ii) and 
     inserting ``, and'', and
       (3) by adding at the end the following new clause:
       ``(iii) in the case of any hydropower facility described in 
     subparagraph (D), the hydropower production from the facility 
     for the taxable year.''.
       (b) Production.--Paragraph (8) of section 45(c) of the 
     Internal Revenue Code of 1986 is amended by adding at the end 
     the following new subparagraph:
       ``(D) Other hydropower production facilities.--For purposes 
     of subparagraph (A), a facility is described in this 
     subparagraph if such facility--
       ``(i) is a hydroelectric dam or nonhydroelectric dam--

       ``(I) which is placed in service after the date of the 
     enactment of the Hydropower Renewable Energy Development Act 
     of 2010, and
       ``(II) which would be described in subparagraph (A)(i) or 
     (C) but for the placed in service date,

       ``(ii) is a hydroelectric facility not described in clause 
     (i) which has a nameplate capacity rating of less than 50 
     megawatts, or
       ``(iii) is not described in clause (i) or (ii) and 
     generates energy through the use of a lake tap or pumped 
     storage.''.
       (c) Qualified Facilities.--Paragraph (9) of section 45(d) 
     of the Internal Revenue Code of 1986 is amended to read as 
     follows:
       ``(9) Qualified hydropower facility.--
       ``(A) Incremental hydropower production.--In the case of a 
     facility described in subsection (c)(8), without regard to 
     subparagraph (C) or (D) thereof, which produces incremental 
     hydropower production, the term `qualified facility' means 
     such facility but only to the extent of such incremental 
     hydropower production attributable to efficiency improvements 
     or additions to capacity described in subsection (c)(8)(B) 
     placed in service after August 8, 2005, and before January 1, 
     2014.

[[Page S5791]]

       ``(B) Production from certain nonhydroelectric dams.--In 
     the case of a facility described in subsection (c)(8)(C) 
     which produces qualified hydropower production, the term 
     `qualified facility' means any such facility placed in 
     service after August 8, 2005, and before January 1, 2014.
       ``(C) Production from other hydropower facilities.--In the 
     case of qualified hydropower production at a facility after 
     the date of the enactment of the Hydropower Renewable Energy 
     Development Act of 2010, the term `qualified facility' 
     includes any such facility which is described in subsection 
     (c)(8)(D).
       ``(D) Credit period.--In the case of a qualified facility 
     described in subparagraph (A), the 10-year period referred to 
     in subsection (a) shall be treated as beginning on the date 
     the efficiency improvements or additions to capacity are 
     placed in service.''.
       (d) Increase in Credit Rate.--Subparagraph (A) of section 
     45(b)(4) of the Internal Revenue Code of 1986 is amended by 
     striking ``(9),''.
       (e) Effective Date.--The amendments made by this section 
     shall apply to electricity produced after the date of the 
     enactment of this Act.
                                 ______