Text: H.R.5856 — 111th Congress (2009-2010)All Bill Information (Except Text)

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Introduced in House (07/26/2010)

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[Congressional Bills 111th Congress]
[From the U.S. Government Printing Office]
[H.R. 5856 Introduced in House (IH)]

  2d Session
                                H. R. 5856

To amend the Internal Revenue Code of 1986 to provide for an investment 
               tax credit for waste-to-energy facilities.



                             July 26, 2010

Mr. Doggett (for himself, Mr. Lewis of Georgia, Mr. Blumenauer, and Mr. 
    Holt) introduced the following bill; which was referred to the 
                      Committee on Ways and Means


                                 A BILL

To amend the Internal Revenue Code of 1986 to provide for an investment 
               tax credit for waste-to-energy facilities.

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


    This Act may be cited as the ``Waste-to-Energy Technology Act of 


    (a) 30 Percent Energy Percentage.--Clause (i) of section 
48(a)(2)(A) of the Internal Revenue Code of 1986 is amended by striking 
``and'' at the end of subparagraph (III) and by inserting after 
subparagraph (IV) the following new subparagraph:
                    ``(E) qualified waste-to-energy property, and''.
    (b) Energy Property.--Subparagraph (A) of section 48(a)(3) of such 
Code is amended by striking ``or'' at the end of clause (vi), by 
inserting ``or'' at the end of clause (vii), and by inserting after 
clause (vii) the following new clause:
                            ``(viii) qualified waste-to-energy 
    (c) Qualified Waste-to-Energy Property Defined.--Subsection (c) of 
section 48 of such Code is amended by adding at the end the following 
new paragraph:
            ``(5) Qualified waste-to-energy property.--
                    ``(A) In general.--The term `qualified waste-to-
                energy property' means property comprising a system 
                            ``(i) uses municipal solid waste or 
                        municipal sewage sludge as the feedstock for 
                        producing solid, liquid, or gas fuel, and
                            ``(ii) is certified by the Secretary under 
                        subparagraph (D)(iii) as eligible for a credit 
                        under this section.
                    ``(B) Exception.--Such term does not include any 
                landfill facility that recirculates leachate, regrades 
                landfill surfaces to encourage runoff to infiltrate the 
                cells, or delays installation of covers longer than 18 
                months following the cell reaching more than 90 percent 
                of its final grade.
                    ``(C) Limitation.--The amount allowed as a credit 
                for a qualified waste-to-energy property shall not 
                exceed the credit allocation to such project under 
                subparagraph (D)(ii).
                    ``(D) Competitive allocation of credit.--
                            ``(i) In general.--Not later than 180 days 
                        after the date of enactment of this section, 
                        the Secretary, in consultation with the 
                        Administrator of the Environmental Protection 
                        Agency, shall establish a qualifying waste-to-
                        energy project program to consider and award 
                        certifications for qualified investments 
                        eligible for credits under this section to 
                        qualifying waste-to-energy project sponsors.
                            ``(ii) Limitation.--The total amount of 
                        credits that may be allocated under the program 
                        shall not exceed $1,000,000,000.
                            ``(iii) Certification.--
                                    ``(I) Application period.--An 
                                application for certification under 
                                this paragraph may only be submitted 
                                during the 2-year period beginning on 
                                the date the Secretary establishes the 
                                program under clause (i) and shall 
                                contain such information as the 
                                Secretary may require.
                                    ``(II) Time to meet criteria for 
                                certification.--Each applicant for 
                                certification shall have 1 year from 
                                the date of acceptance by the Secretary 
                                of the application during which to 
                                provide to the Secretary evidence that 
                                the requirements of the certification 
                                have been met.
                            ``(iv) Selection criteria.--In determining 
                        which qualifying waste-to-energy projects to 
                        certify under this section, the Secretary--
                                    ``(I) shall take into consideration 
                                only those projects where there is a 
                                reasonable expectation of commercial 
                                viability, and
                                    ``(II) shall take into 
                                consideration those projects which--
                                            ``(aa) use the least amount 
                                        of post-consumer materials that 
                                        could otherwise enter the 
                                        recycling stream,
                                            ``(bb) will provide the 
                                        greatest net impact in avoiding 
                                        or reducing air pollutants or 
                                        anthropogenic emissions of 
                                        greenhouse gases (including 
                                        lifecycle leakage of greenhouse 
                                            ``(cc) have the lowest 
                                        levelized cost of generated or 
                                        stored energy, or of measured 
                                        reduction in energy consumption 
                                        or greenhouse gas emission 
                                        (based on costs of the full 
                                        supply chain), and
                                            ``(dd) pose the fewest 
                                        risks (other than climate 
                                        risks) to environmental and 
                                        human health.
                            ``(v) Limitation on allocation.--No credit 
                        shall be allocated with respect to any 
                        qualified waste-to-energy property for which 
                        there is no net benefit in cumulative lifecycle 
                        greenhouse gas emissions.
                            ``(vi) Greenhouse gas leakage from 
                        facility.--For purposes of clause 
                                    ``(I) In general.--The lifecycle 
                                leakage of greenhouse gases is, on a 
                                integrated basis, the leakage rate 
                                during each phase multiplied by the 
                                proportion of lifetime greenhouse gases 
                                that are released by the facility in 
                                that phase, which shall be based upon 
                                field data where that can be 
                                    ``(II) Matters included.--Included 
                                in the lifecycle analysis shall be an 
                                accounting of the leakage of greenhouse 
                                gases attendant upon the production of 
                                bio-based energy from the facility. 
                                Such leakage shall be determined over 
                                the longer of the entire lifetime the 
                                facility releases greenhouse gases into 
                                the atmosphere or the time the facility 
                                is capable of doing so by virtue of the 
                                quantity of any residual carbon 
                                remaining after energy production. 
                                Leakage shall be accounted for during 
                                each distinct phase of the facility's 
                                life, including the time before the gas 
                                collection system and the final cover 
                                is installed and the time after funds 
                                previously set aside to maintain the 
                                final cover after the facility is 
                                closed are no longer available. Leakage 
                                shall be counted for the entire time 
                                the facility generates, or is capable 
                                of generating, greenhouse gases.
                            ``(vii) Definitions relating to greenhouse 
                        gas leakage.--For purposes of clause (vi)--
                                    ``(I) Leakage.--The term `leakage' 
                                means the portion of the total 
                                greenhouse gases generated by 
                                decomposition of organic discards 
                                disposed of in the facility that are 
                                released into the atmosphere.
                                    ``(II) Facility.--A facility refers 
                                not only to the energy-producing 
                                machinery but also to the entire 
                                municipal solid waste landfill unit.
                                    ``(III) Phase.--The term `phase' 
                                means one of the time periods when 
                                greenhouse gases are generated at a 
                                facility at distinctly different rates 
                                of generation and rates of gas 
                                collection. For landfill facilities 
                                that produce biogas, the periods are--
                                            ``(aa) the time prior to 
                                        the installation of active gas 
                                        collection systems,
                                            ``(bb) the time after the 
                                        installation of the systems but 
                                        prior to installation of the 
                                        final cover,
                                            ``(cc) the time after 
                                        installation of the final cover 
                                        but prior to the time that 
                                        maintenance of the cover ends, 
                                            ``(dd) the time after 
                                        maintenance of the cover ends.
                                    ``(IV) Bio-based energy.--The term 
                                `bio-based energy' means energy 
                                produced from the current decomposition 
                                of plants or animals.
                                    ``(V) Integrated basis.--The term 
                                `integrated basis' means first 
                                multiplying the collection efficiency 
                                applicable for each phase of the life 
                                of a landfill facility by the 
                                proportion of the total gas over the 
                                landfill's life that is generated 
                                during that phase, and then summing the 
                                product of the two for each phase to 
                                determine the integrated collection 
                                efficiency that reflects the actual 
                                lifetime collection efficiency.
                    ``(E) Denial of double benefit.--
                            ``(i) In general.--A credit shall not be 
                        allowed under sections 40, 40A, 45, 48B, and 
                        6426 with respect to any fuel produced at a 
                        facility with respect to which a credit is 
                        allowed under this section.
                            ``(ii) Coordination with arra grant.--A 
                        credit shall not be allowed under this section 
                        for any facility if a grant is made under 
                        section 1603 of the American Recovery and 
                        Reinvestment Act with respect to such 
    (d) Conforming Amendment.--Subsection (e) of section 45 of such 
Code is amended by adding at the end the following new paragraph:
            ``(12) Coordination with energy credit for qualified waste-
        to-energy property.--The term `qualified facility' shall not 
        include any facility which produces electricity from solid, 
        gas, or liquid fuel produced by qualified waste-to-energy 
        property (as defined in section 48(c)(5)) if a credit is 
        determined under section 48 with respect to such property for 
        the taxable year or any prior taxable year.''.
    (e) Report.--After the Secretary of the Treasury, in consultation 
with the Administrator of the Environmental Protection Agency, has made 
all of the credit allocation under section 48(c)(5) of the Internal 
Revenue Code of 1986 (as added by subsection (a)), the Secretary, in 
consultation with the Administrator, shall submit to Congress a report 
on the recipients of the energy credit for qualified waste-to-energy 
property under section 48 of such Code and the effectiveness of the 
selection criteria under section 48(c)(5)(D)(iv) of such Code in 
selecting waste-to-energy projects these projects. The report shall 
also include recommendations (if any) for continuing the waste-to-
energy credit under section 48(c) of such Code and, if so, at what 
dollar amount. The Secretary shall, upon making a certification of such 
credit under section 48(c)(5)(D)(iii) of such Code, publicly disclose 
the identity of the applicant and the amount of the credit with respect 
to such applicant.
    (f) Effective Date.--The amendments made by this section shall 
apply to facilities placed in service in periods after the date of the 
enactment of this Act, in taxable years ending after such date, under 
rules similar to the rules of section 48(m) of the Internal Revenue 
Code of 1986 (as in effect on the day before the date of the enactment 
of the Revenue Reconciliation Act of 1990).