To amend the Internal Revenue Code of 1986 to modify the credit for the production of electricity to include electricity produced from municipal solid waste.

February 11, 2003

Mrs. LINCOLN (for herself and Mr. AKAKA) introduced the following bill; which was read twice and referred to the Committee on Finance

To amend the Internal Revenue Code of 1986 to modify the credit for the production of electricity to include electricity produced from municipal solid waste.

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 Utilization Act of 2003'.

SEC. 2. CREDIT FOR ELECTRICITY PRODUCED FROM MUNICIPAL SOLID WASTE.

(a) IN GENERAL- Section 45(c)(1) of the Internal Revenue Code of 1986 (defining qualified energy resources) is amended by striking `and' at the end of subparagraph (B), by striking the period at the end of subparagraph (C) and inserting `, and', and by adding at the end the following new subparagraph:

`(D) municipal solid waste.'.

(b) QUALIFIED FACILITY- Section 45(c)(3) of the Internal Revenue Code of 1986 (relating to qualified facility) is amended by adding at the end the following new subparagraph:

`(D) MUNICIPAL SOLID WASTE FACILITY-

`(i) IN GENERAL- In the case of a facility or unit using municipal solid waste to produce electricity, the term `qualified facility' means--

`(I) any facility owned by the taxpayer which is originally placed in service on or after date of the enactment of this subparagraph and before January 1, 2008, or

`(II) any unit owned by the taxpayer which is originally placed in service and added to another facility on or after such date of enactment and before January 1, 2008.

`(ii) SPECIAL RULE- In the case of a qualified facility described in clause (i)(II), the 10-year period referred to in subsection (a) shall be treated as beginning no earlier than the date of the enactment of this subparagraph.

`(iii) CREDIT ELIGIBILITY- In the case of any qualified facility described in clause (i), if the owner of such facility is not the producer of the electricity, the person eligible for the credit allowable under subsection (a) is the lessee or the operator of such facility.'.

(c) DEFINITION- Section 45(c) of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph:

`(5) MUNICIPAL SOLID WASTE- The term `municipal solid waste' has the meaning given the term `solid waste' under section 2(27) of the Solid Waste Disposal Act (42 U.S.C. 6903).'.

(d) NO CREDIT FOR CERTAIN PRODUCTION- Section 45(d) of the Internal Revenue Code of 1986 (relating to definitions and special rules) is amended by adding at the end the following new paragraph:

`(8) OPERATIONS INCONSISTENT WITH SOLID WASTE DISPOSAL ACT- In the case of a qualified facility described in subsection (c)(3)(D), subsection (a) shall not apply to electricity produced at such facility during any taxable year if, during a portion of such year, there is a certification in effect by the Administrator of the Environmental Protection Agency that such facility was permitted in a manner inconsistent with section 4003(d) of the Solid Waste Disposal Act (42 U.S.C. 6943(d)).'.

(e) EFFECTIVE DATE- The amendments made by this section shall apply to electricity sold after the date of the enactment of this Act, in taxable years ending after such date.

END