[Congressional Record Volume 163, Number 195 (Thursday, November 30, 2017)]
[Senate]
[Pages S7578-S7579]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
SA 1680. Mr. MORAN submitted an amendment intended to be proposed by
him to the bill H.R. 1, to provide for reconciliation pursuant to
titles II and V of the concurrent resolution on the budget for fiscal
year 2018; which was ordered to lie on the table; as follows:
At the end of subpart A of part VI of subtitle C of title
I, add the following:
SEC. 1____. TREATMENT OF PUBLICLY TRADED PARTNERSHIPS.
(a) Extension of Publicly Traded Partnership Ownership
Structure to Energy Power Generation Projects, Transportation
Fuels, and Related Energy Activities.--
(1) In general.--Subparagraph (E) of section 7704(d)(1) is
amended--
(A) by striking ``income and gains derived from the
exploration'' and inserting ``income and gains derived from
the following:
``(i) Minerals, natural resources, etc.--The exploration'',
(B) by inserting ``or'' before ``industrial source'',
(C) by inserting a period after ``carbon dioxide'', and
(D) by striking ``, or the transportation or storage'' and
all that follows and inserting the following:
``(ii) Renewable energy.--The generation of electric power
(including the leasing of tangible personal property used for
such generation) exclusively utilizing any resource described
in section 45(c)(1) or energy property described in section
48 (determined without regard to any termination date), or in
the case of a facility described in paragraph (3) or (7) of
section 45(d) (determined without regard to any placed in
service date or date by which construction of the facility is
required to begin), the accepting or processing of such
resource.
``(iii) Energy storage property.--The sale of electric
power, capacity, resource adequacy, demand response
capabilities, or ancillary services that is produced or made
available from any equipment or facility (operating as a
single unit or as an aggregation of units) the principal
function of which is to--
``(I) use mechanical, chemical, electrochemical,
hydroelectric, or thermal processes to store energy that was
generated at one time for conversion to electricity at a
later time; or
``(II) store thermal energy for direct use for heating or
cooling at a later time in a manner that avoids the need to
use electricity at that later time.
``(iv) Combined heat and power.--The generation, storage,
or distribution of thermal energy exclusively utilizing
property described in section 48(c)(3) (determined without
regard to subparagraphs (B) and (D) thereof and without
regard to any placed in service date).
``(v) Renewable thermal energy.--The generation, storage,
or distribution of thermal energy exclusively using any
resource described in section 45(c)(1) or energy property
described in clause (i) or (iii) of section 48(a)(3)(A).
``(vi) Waste heat to power.--The use of recoverable waste
energy, as defined in section 371(5) of the Energy Policy and
Conservation Act (42 U.S.C. 6341(5)) (as in effect on the
date of the enactment of the Tax Cuts and Jobs Act).
``(vii) Renewable fuel infrastructure.--The storage or
transportation of any fuel described in subsection (b), (c),
(d), or (e) of section 6426.
``(viii) Renewable fuels.--The production, storage, or
transportation of any renewable fuel described in section
211(o)(1)(J) of the Clean Air Act (42 U.S.C. 7545(o)(1)(J))
(as in effect on the date of the enactment of the Tax Cuts
and Jobs Act) or section 40A(d)(1).
``(ix) Fuel derived from captured carbon dioxide.--The
production, storage, or transportation of any fuel which--
``(I) uses carbon dioxide captured from an anthropogenic
source or the atmosphere as its primary feedstock, and
``(II) is determined by the Secretary, in consultation with
the Secretary of Energy and the Administrator of the
Environmental Protection Agency, to achieve a reduction of
not less than a 60 percent in lifecycle greenhouse gas
emissions (as defined in section 211(o)(1)(H) of the Clean
Air Act) compared to baseline lifecycle greenhouse gas
emissions (as defined in section 211(o)(1)(C) of such Act).
This clause shall not apply to any fuel which uses as its
primary feedstock carbon dioxide which is deliberately
released from naturally-occurring subsurface springs.
``(x) Renewable chemicals.--The production, storage, or
transportation of any qualifying renewable chemical (as
defined in paragraph (6)).
``(xi) Energy efficient buildings.--The audit and
installation through contract or other agreement of any
energy efficient building property described in section
179D(c)(1).
``(xii) Gasification with sequestration.--The production of
any product or the generation of electric power from a
project--
``(I) which meets the requirements of subparagraphs (A) and
(B) of section 48B(c)(1), and
``(II) not less than 75 percent of the total carbon dioxide
emissions of which is qualified carbon dioxide (as defined in
section 45Q(b)) which is disposed of or utilized as provided
in paragraph (7).
``(xiii) Carbon capture and sequestration.--
``(I) Power generation facilities.--The generation or
storage of electric power (including associated income from
the sale or marketing of energy, capacity, resource adequacy,
and ancillary services) produced from any power generation
facility which is, or from any power generation unit within,
a qualified facility which is described in section 45Q(c) and
not less than 50 percent (30 percent in the case of a
facility or unit placed in service before January 1, 2017) of
the total carbon dioxide emissions of which is qualified
carbon dioxide which is disposed of or utilized as provided
in paragraph (7).
``(II) Other facilities.--The sale of any good or service
from any facility (other than a power generation facility)
which is a qualified facility described in section 45Q(c) and
the captured qualified carbon dioxide (as so defined) of
which is disposed of as provided in paragraph (7).''.
(2) Renewable chemical.--
(A) In general.--Section 7704(d) is amended by adding at
the end the following new paragraph:
``(6) Qualifying renewable chemical.--
``(A) In general.--The term `qualifying renewable chemical'
means any renewable chemical (as defined in section 9001 of
the Agriculture Act of 2014)--
``(i) which is produced by the taxpayer in the United
States or in a territory or possession of the United States,
``(ii) which is the product of, or reliant upon, biological
conversion, thermal conversion, or a combination of
biological and thermal conversion, of renewable biomass (as
defined in section 9001(13) of the Farm Security and Rural
Investment Act of 2002),
``(iii) the biobased content of which is 95 percent or
higher,
``(iv) which is sold or used by the taxpayer--
``(I) for the production of chemical products, polymers,
plastics, or formulated products, or
``(II) as chemicals, polymers, plastics, or formulated
products,
``(v) which is not sold or used for the production of any
food, feed, or fuel, and
``(vi) which is--
``(I) acetic acid, acrylic acid, acyl glutamate, adipic
acid, algae oils, algae sugars, 1,4-butanediol (BDO), iso-
butanol, n-butanol, C10 and higher hydrocarbons produced from
olefin metathesis, carboxylic acids produced from olefin
metathesis, cellulosic sugar, diethyl methylene malonate,
dodecanedioic acid (DDDA), esters produced from olefin
metathesis, ethyl acetate, ethylene glycol, farnesene, 2,5-
furandicarboxylic acid, gamma-butyrolactone, glucaric acid,
hexamethylenediamine (HMD), 3-hydroxy propionic acid, iso-
butene, isoprene, itaconic acid, lactide, levulinic acid,
polyhydroxyalkonate (PHA), polylactic acid (PLA),
polyethylene furanoate (PEF), polyethylene terephthalate
(PET), polyitaconic acid, polyols from vegetable oils,
poly(xylitan levulinate ketal), 1,3-propanediol, 1,2-
propanediol, rhamnolipids, short and medium chain carboxylic
acids produced from anaerobic digestion, succinic acid,
terephthalic acid, vegetable fatty acid
[[Page S7579]]
derived from ethyl esters containing vegetable oil, or p-
Xylene, or
``(II) any chemical not described in clause (i) which is a
chemical listed by the Secretary for purposes of this
paragraph.
``(B) Biobased content.--For purposes of subparagraph
(A)(iii), the term `biobased content percentage' means, with
respect to any renewable chemical, the biobased content of
such chemical (expressed as a percentage) determined by
testing representative samples using the American Society for
Testing and Materials (ASTM) D6866.''.
(B) List of other qualifying renewable chemicals.--Not
later than 180 days after the date of the enactment of this
Act, the Secretary of the Treasury (or the Secretary's
delegate), in consultation with the Secretary of Agriculture,
shall establish a program to consider applications from
taxpayers for the listing of chemicals under section
7874(d)(6)(A)(vi)(II) (as added by paragraph (1)).
(3) Disposal and utilization of of captured carbon
dioxide.--Section 7704(d), as amended by paragraph (2), is
amended by adding at the end the following new paragraph:
``(7) Disposal and utilization of captured carbon
dioxide.--For purposes of clauses (xii)(III) and (xiii)(I) of
paragraph (1)(E), carbon dioxide is disposed of or utilized
as provided in this paragraph if such carbon dioxide is--
``(A) placed into secure geological storage (as determined
under section 45Q(d)(2)),
``(B) used as a tertiary injectant (as defined in section
45Q(d)(3)) in a qualified enhanced oil or natural gas
recovery project (as defined in section 45Q(d)(4)) and placed
into secure geological storage (as so determined),
``(C) fixated through photosynthesis or chemosynthesis
(such as through the growing of algae or bacteria),
``(D) chemically converted to a material or chemical
compound in which it is securely stored, or
``(E) used for any other purpose which the Secretary
determines has the potential to strengthen or significantly
develop a competitive market for carbon dioxide captured from
man-made sources.''.
(4) Effective date.--The amendments made by this subsection
shall take effect on the date of the enactment of this Act,
in taxable years ending after such date.
(b) Application of Qualified Business Income Deduction to
Publicly Traded Partnerships.--
(1) In general.--Section 199A(b)(1)(B), as added by
subsection (a), is amended by striking ``and qualified
cooperative dividends'' and inserting ``, qualified
cooperative dividends, and qualified publicly traded
partnership income''.
(2) Qualified publicly traded partnership income.--Section
199A(e), as added by subsection (a), is amended by adding at
the end the following new paragraph:
``(5) Qualified publicly traded partnership income.--The
term `qualified publicly traded partnership income' means,
with respect to any taxpayer, the sum of--
``(A) the net amount of such taxpayer's allocable share of
each qualified item of income, gain, deduction, and loss (as
defined in subsection (c)(3) and determined after the
application of subsection (c)(4)) from a publicly traded
partnership (as defined in section 7704(a)) which is not
treated as a corporation under section 7704(c), plus
``(B) any gain recognized by such taxpayer upon disposition
of its interest in such partnership to the extent such gain
is treated as an amount realized from the sale or exchange of
property other than a capital asset under section 751(a).''.
(3) Conforming amendment.--Section 199A(c)(1), as added by
subsection (a), is amended by adding at the end the following
new sentence: ``Such term shall not include any qualified
publicly traded partnership income.''.
(4) Effective date.--The amendments made by this subsection
shall apply to taxable years beginning after December 31,
2017.
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