HR 66
112th CONGRESS
1st Session
H. R. 66
To amend the Internal Revenue Code of 1986 to provide for an investment
tax credit for waste-to-energy facilities.
IN THE HOUSE OF REPRESENTATIVES
January 5, 2011
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,
SECTION 1. SHORT TITLE.
This Act may be cited as the `Waste-to-Energy Technology Act of 2011'.
SEC. 2. INVESTMENT TAX CREDIT FOR WASTE-TO-ENERGY FACILITIES.
(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:
`(V) 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 property,'.
(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 which--
`(i) uses municipal solid waste or municipal sewage sludge as the feedstock
for producing solid, liquid, or gas fuel, or for producing energy, 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.
`(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 materials which are commonly recycled,
`(bb) will provide the greatest net impact in avoiding or reducing
air pollutants or anthropogenic emissions of greenhouse gases (including lifecycle
leakage of greenhouse gases),
`(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 (iv)(II)(bb)--
`(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 accomplished.
`(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, and
`(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 facility.'.
(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 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).
END
