S 306 ISCommentsClose CommentsPermalink

To promote biogas production, and for other purposes.CommentsClose CommentsPermalink

January 22, 2009CommentsClose CommentsPermalink

Mr. NELSON of Nebraska (for himself, Mr. CRAPO, Mr. WYDEN, Mr. THUNE, Mr. BROWN, Mr. JOHANNS, and Ms. STABENOW) introduced the following bill; which was read twice and referred to the Committee on FinanceCommentsClose CommentsPermalink

To promote biogas production, and for other purposes.CommentsClose CommentsPermalink

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

SECTION 1. SHORT TITLE.

This Act may be cited as the ‘Biogas Production Incentive Act of 2009’.CommentsClose CommentsPermalink

SEC. 2. CREDIT FOR PRODUCTION OF BIOGAS FROM CERTAIN RENEWABLE FEEDSTOCKS.

(a) In General- Subpart D of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after section 45Q the following new section:CommentsClose CommentsPermalink

‘SEC. 45R. BIOGAS PRODUCED FROM CERTAIN RENEWABLE FEEDSTOCKS.

‘(a) General Rule- For purposes of section 38, the qualified biogas production credit for any taxable year is an amount equal to the product of--CommentsClose CommentsPermalink





‘(1) $4.27, andCommentsClose CommentsPermalink





‘(2) each million British thermal unit (mmBtu) of biogas--CommentsClose CommentsPermalink





‘(A) produced by the taxpayer--CommentsClose CommentsPermalink





‘(i) from qualified energy feedstock, andCommentsClose CommentsPermalink





‘(ii) at a qualified facility during the 10-year period beginning on the date the facility was originally placed in service, andCommentsClose CommentsPermalink





‘(B) either--CommentsClose CommentsPermalink





‘(i) sold by the taxpayer to an unrelated person during the taxable year, orCommentsClose CommentsPermalink





‘(ii) used by the taxpayer during the taxable year.CommentsClose CommentsPermalink





‘(b) Definitions-CommentsClose CommentsPermalink





‘(1) BIOGAS- The term ‘biogas’ means a gas that--CommentsClose CommentsPermalink





‘(A) is derived by processing qualified energy feedstock, andCommentsClose CommentsPermalink





‘(B) contains at least 50 percent methane.CommentsClose CommentsPermalink





‘(2) QUALIFIED ENERGY FEEDSTOCK-CommentsClose CommentsPermalink





‘(A) IN GENERAL- The term ‘qualified energy feedstock’ means--CommentsClose CommentsPermalink





‘(i) manure of agricultural livestock, including litter, wood shavings, straw, rice hulls, bedding material, and other materials incidentally collected with the manure,CommentsClose CommentsPermalink





‘(ii) any nonhazardous, cellulosic, or other organic agricultural or food industry by-product or waste material that is derived from--CommentsClose CommentsPermalink





‘(I) renewable biomass,CommentsClose CommentsPermalink





‘(II) harvesting residues,CommentsClose CommentsPermalink





‘(III) wastes or byproducts from fermentation processes, ethanol production, biodiesel production, slaughter of agricultural livestock, food production, food processing, or food service, orCommentsClose CommentsPermalink





‘(IV) other organic wastes, byproducts, or sources,CommentsClose CommentsPermalink





‘(iii) solid wood waste materials, including waste pallets, crates, dunnage, manufacturing and construction wood wastes, and landscape or right-of-way tree trimmings, orCommentsClose CommentsPermalink





‘(iv) landfill waste, sewage waste treatment materials, or other organic materials.CommentsClose CommentsPermalink





‘(B) RENEWABLE BIOMASS- The term ‘renewable biomass’ means--CommentsClose CommentsPermalink





‘(i) materials from pre-commercial thinning or invasive species from National Forest System land and public lands (as defined in section 103 of the Federal Land Policy and Management Act of 1976 (43 U.S.C. 1702)) that--CommentsClose CommentsPermalink





‘(I) are byproducts of preventive treatments that are removed to reduce or contain disease or insect infestation to restore ecosystem health,CommentsClose CommentsPermalink





‘(II) would not otherwise be used for higher-value products, andCommentsClose CommentsPermalink





‘(III) are harvested in accordance with applicable law and land management plans and the requirements for old-growth maintenance, restoration, and management direction of paragraphs (2), (3), and (4) of subsection (e) of section 102 of the Healthy Forests Restoration Act of 2003 (16 U.S.C. 6512) and large tree retention of subsection (f) of that section, orCommentsClose CommentsPermalink





‘(ii) any organic matter that is available on a renewable or recurring basis from non-Federal land or land belonging to an Indian or Indian tribe that is held in trust by the United States or subject to a restriction against alienation imposed by the United States, including--CommentsClose CommentsPermalink





‘(I) renewable plant material (such as feed grains, other agricultural commodities, other plants and trees, and algae), andCommentsClose CommentsPermalink





‘(II) waste material (such as crop residue, other vegetative waste material (including wood waste and wood residues), animal waste and byproducts (including fats, oils, greases, and manure), food waste, and yard waste).CommentsClose CommentsPermalink





‘(C) AGRICULTURAL LIVESTOCK- The term ‘agricultural livestock’ means poultry, cattle, sheep, swine, goats, horses, mules, and other equines.CommentsClose CommentsPermalink





‘(3) QUALIFIED FACILITY- The term ‘qualified facility’ means a facility that--CommentsClose CommentsPermalink





‘(A) uses anaerobic digesters, gasification, or other biological, chemical, or thermal processes to convert qualified energy feedstock into biogas,CommentsClose CommentsPermalink





‘(B) is owned by the taxpayer,CommentsClose CommentsPermalink





‘(C) is located in the United States,CommentsClose CommentsPermalink





‘(D) is originally placed in service before January 1, 2017, andCommentsClose CommentsPermalink





‘(E) the biogas output of which is--CommentsClose CommentsPermalink





‘(i) marketed through interconnection with a gas distribution or transmission pipeline, orCommentsClose CommentsPermalink





‘(ii) reasonably expected to be used in a quantity sufficient to offset the consumption of 5,000 mmBtu annually of commercially marketed fuel derived from coal, crude oil, natural gas, propane, or other fossil fuels.CommentsClose CommentsPermalink





‘(c) Special Rules- For purposes of this section--CommentsClose CommentsPermalink





‘(1) PRODUCTION ATTRIBUTABLE TO THE TAXPAYER- In the case of a facility in which more than 1 person has an ownership interest, except to the extent provided in regulations prescribed by the Secretary, production from the qualified facility shall be allocated among such persons in proportion to their respective ownership interests in the gross sales from such qualified facility.CommentsClose CommentsPermalink





‘(2) RELATED PERSONS- Persons shall be treated as related to each other if such persons would be treated as a single employer under the regulations prescribed under section 52(b). In the case of a corporation which is a member of an affiliated group of corporations filing a consolidated return, such corporation shall be treated as selling biogas to an unrelated person if such biogas is sold to such a person by another member of such group.CommentsClose CommentsPermalink





‘(3) PASS-THRU IN THE CASE OF ESTATES AND TRUSTS- Under regulations prescribed by the Secretary, rules similar to the rules of subsection (d) of section 52 shall apply.CommentsClose CommentsPermalink





‘(4) COORDINATION WITH CREDIT FROM PRODUCING FUEL FROM A NONCONVENTIONAL SOURCE- The amount of biogas produced and sold or used by the taxpayer during any taxable year which is taken into account under this section shall be reduced by the amount of biogas produced and sold by the taxpayer in such taxable year which is taken into account under section 45K.CommentsClose CommentsPermalink





‘(5) CREDIT ELIGIBILITY IN THE CASE OF GOVERNMENT-OWNED FACILITIES- In the case of any facility which produce biogas and which is owned by a governmental unit, subparagraph (B) of subsection (b)(3) shall be applied by substituting ‘is leased or operated by the taxpayer’ for ‘is owned by the taxpayer’.CommentsClose CommentsPermalink





‘(d) Special Rule for Public-Private Partnerships-CommentsClose CommentsPermalink





‘(1) IN GENERAL- In the case of facility which is owned by a public-private partnership, any qualified public entity which is a member of such partnership may transfer such entity’s allocation of the credit under subsection (a) to any non-public entity which is a member of such partnership, except that the aggregate allocations of such credit claimed by such non-public entity shall be subject to the limitations under subsections (b) and (c) and section 38(c).CommentsClose CommentsPermalink





‘(2) QUALIFIED PUBLIC ENTITY- For purposes of this subsection, the term ‘qualified public entity’ means a Federal, State, or local government entity, or any political subdivision thereof, or a cooperative organization described in section 1381(a).CommentsClose CommentsPermalink





‘(3) VERIFICATION OF TRANSFER OF ALLOCATION- A qualified public entity that makes a transfer under paragraph (1), and a non-public entity that receives an allocation under such a transfer, shall provide verification of such transfer in such manner and at such time as the Secretary shall prescribe.CommentsClose CommentsPermalink





‘(e) Adjustment Based on Inflation-CommentsClose CommentsPermalink





‘(1) IN GENERAL- The $4.27 amount under subsection (b)(1) shall be adjusted by multiplying such amount by the inflation adjustment factor for the calendar year in which the sale occurs. If any amount as increased under the preceding sentence is not a multiple of 0.1 cent, such amount shall be rounded to the nearest multiple of 0.1 cent.CommentsClose CommentsPermalink





‘(2) COMPUTATION OF INFLATION ADJUSTMENT FACTOR-CommentsClose CommentsPermalink





‘(A) IN GENERAL- The Secretary shall, not later than April 1 of each calendar year, determine and publish in the Federal Register the inflation adjustment factor in accordance with this paragraph.CommentsClose CommentsPermalink





‘(B) INFLATION ADJUSTMENT FACTOR- The term ‘inflation adjustment factor’ means, with respect to a calendar year, a fraction the numerator of which is the GDP implicit price deflator for the preceding calendar year and the denominator of which is the GDP implicit price deflator for calendar year 2008. The term ‘GDP implicit price deflator’ means the most recent revision of the implicit price deflator for the gross domestic product as computed and published by the Department of Commerce before March 15 of the calendar year.’.CommentsClose CommentsPermalink





(b) Credit Treated as Business Credit- Section 38(b) of the Internal Revenue Code of 1986 is amended by striking ‘plus’ at the end of paragraph (34), by striking the period at the end of paragraph (35) and inserting ‘, plus’, and by adding at the end the following new paragraph:CommentsClose CommentsPermalink





‘(36) the qualified biogas production credit under section 45R(a).’.CommentsClose CommentsPermalink





(c) Coordination With Credit for Production Electricity From a Renewable Resource- Section 45(e) of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph:CommentsClose CommentsPermalink





‘(12) COORDINATION WITH CREDIT FOR PRODUCTION OF BIOGAS- The term ‘qualified facility’ shall not include any facility which produces electricity from biogas the production from which is allowed a credit under section 45R for such taxable year or any prior taxable year.’.CommentsClose CommentsPermalink





(d) Credit Allowed Against AMT- Section 38(c)(4)(B) of the Internal Revenue Code of 1986 is amended by redesignating clauses (vi) through (viii) as clauses (vii) through (ix), respectively, and by inserting after clause (v) the following new clause:CommentsClose CommentsPermalink





‘(vi) the credit determined under section 45R.’.CommentsClose CommentsPermalink





(e) Clerical Amendment- The table of sections for subpart D of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after the item relating to section 45Q the following new item:CommentsClose CommentsPermalink





‘Sec. 45R. Biogas produced from certain renewable feedstocks.’.CommentsClose CommentsPermalink





(f) Effective Date- The amendments made by this section shall apply to biogas produced and sold or used in taxable years beginning after the date of the enactment of this Act.CommentsClose CommentsPermalink