HR 2391 IHCommentsClose CommentsPermalink

112th CONGRESSCommentsClose CommentsPermalink

1st SessionCommentsClose CommentsPermalink

H. R. 2391CommentsClose CommentsPermalink

To amend the Internal Revenue Code of 1986 to provide a renewable electricity integration credit.CommentsClose CommentsPermalink

IN THE HOUSE OF REPRESENTATIVESCommentsClose CommentsPermalink

June 24, 2011CommentsClose CommentsPermalink

Mr. PAULSEN (for himself and Mr. KIND) introduced the following bill; which was referred to the Committee on Ways and Means, and in addition to the Committee on Energy and Commerce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concernedCommentsClose CommentsPermalink

A BILLCommentsClose CommentsPermalink

To amend the Internal Revenue Code of 1986 to provide a renewable electricity integration credit.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 ‘Renewable Energy for a Brighter Future Act’.CommentsClose CommentsPermalink

SEC. 2. RENEWABLE ELECTRICITY INTEGRATION CREDIT.

(a) Business Credit-CommentsClose CommentsPermalink





(1) IN GENERAL- Subpart D of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by adding at the end the following new section:CommentsClose CommentsPermalink

‘SEC. 45S. RENEWABLE ELECTRICITY INTEGRATION CREDIT.

‘(a) General Rule- For purposes of section 38, in the case of an eligible taxpayer, the renewable electricity integration credit for any taxable year is an amount equal to the product of--CommentsClose CommentsPermalink





‘(1) the intermittent renewable portfolio factor of such eligible taxpayer, andCommentsClose CommentsPermalink





‘(2) the number of kilowatt hours of renewable electricity--CommentsClose CommentsPermalink





‘(A) purchased or produced by such taxpayer, andCommentsClose CommentsPermalink





‘(B) sold by such taxpayer to a retail customer during the taxable year.CommentsClose CommentsPermalink





‘(b) Intermittent Renewable Portfolio Factor-CommentsClose CommentsPermalink





‘(1) YEARS BEFORE 2017- In the case of taxable years beginning before January 1, 2017, the intermittent renewable portfolio factor for an eligible taxpayer shall be determined as follows:CommentsClose CommentsPermalink

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Less than 4 percent                          zero cents zero cents CommentsClose CommentsPermalink

At least 4 percent but less than 8 percent    0.1 cents zero cents CommentsClose CommentsPermalink

At least 8 percent but less than 12 percent   0.2 cents  0.2 cents CommentsClose CommentsPermalink

At least 12 percent but less than 16 percent  0.3 cents  0.3 cents CommentsClose CommentsPermalink

At least 16 percent but less than 20 percent  0.4 cents  0.4 cents CommentsClose CommentsPermalink

At least 20 percent but less than 24 percent  0.5 cents  0.5 cents CommentsClose CommentsPermalink

Equal to or greater than 24 percent           0.6 cents 0.6 cents. CommentsClose CommentsPermalink

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‘(2) YEARS AFTER 2016- In the case of taxable years beginning after December 31, 2016, the intermittent renewable portfolio factor for an eligible taxpayer shall be determined as follows:CommentsClose CommentsPermalink

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Less than 10 percent                         zero cents zero cents CommentsClose CommentsPermalink

At least 10 percent but less than 12 percent  0.2 cents zero cents CommentsClose CommentsPermalink

At least 12 percent but less than 16 percent  0.3 cents 0.15 cents CommentsClose CommentsPermalink

At least 16 percent but less than 20 percent  0.4 cents  0.4 cents CommentsClose CommentsPermalink

At least 20 percent but less than 24 percent  0.5 cents  0.5 cents CommentsClose CommentsPermalink

Equal to or greater than 24 percent           0.6 cents 0.6 cents. CommentsClose CommentsPermalink

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





‘(1) ELIGIBLE TAXPAYER- The term ‘eligible taxpayer’ means an electric utility (as defined in section 3(22) of the Federal Power Act (16 U.S.C. 796(22)).CommentsClose CommentsPermalink





‘(2) RENEWABLE ELECTRICITY- The term ‘renewable electricity’ means electricity generated by--CommentsClose CommentsPermalink





‘(A) any facility using wind to generate such electricity;CommentsClose CommentsPermalink





‘(B) any facility using solar energy to generate such electricity; orCommentsClose CommentsPermalink





‘(C) any facility using any other intermittent renewable energy source which the Secretary of Energy determines has a capacity factor of less than 50 percent on an annual basis.CommentsClose CommentsPermalink





‘(3) INTERMITTENT RENEWABLE ELECTRICITY PERCENTAGE- The term ‘intermittent renewable electricity percentage’ means the percentage of an eligible taxpayer’s total sales of electricity to retail customers that is derived from renewable electricity (determine without regard to whether such electricity was produced by the taxpayer).CommentsClose CommentsPermalink





‘(4) APPLICATION OF OTHER RULES- For purposes of this section, rules similar to the rules of paragraphs (1), (3), and (5) of section 45(e) shall apply.CommentsClose CommentsPermalink





‘(5) CREDIT ALLOWED ONLY WITH RESPECT TO 1 ELIGIBLE ENTITY- No credit shall be allowed under subsection (a) with respect to renewable electricity purchased from another eligible entity if a credit has been allowed under this section or a payment has been made under section 6433 to such other eligible entity.CommentsClose CommentsPermalink





‘(d) Credit Disallowed Unless Credit Passed to Third Party Generators Charged for Integration Costs-CommentsClose CommentsPermalink





‘(1) IN GENERAL- In the case of renewable electricity eligible for the credit under subsection (a) that is purchased and not produced by an eligible taxpayer, no credit shall be allowed unless any charge the taxpayer has assessed the seller to recover the integration costs associated with such electricity has been reduced (but not below zero) to the extent of the credit received under subsection (a) associated with such electricity.CommentsClose CommentsPermalink





‘(2) DEFINITIONS- For purposes of paragraph (1), charges intended to recover integration costs do not include amounts paid by the producer of the electricity for interconnection facilities, distribution upgrades, network upgrades, or stand alone network upgrades as those terms have been defined by the Federal Energy Regulatory Commission in its Standard Interconnection Procedures.CommentsClose CommentsPermalink





‘(e) Coordination With Payments- The amount of the credit determined under this section with respect to any electricity shall be reduced to take into account any payment provided with respect to such electricity solely by reason of the application of section 6433.’.CommentsClose CommentsPermalink





(2) CREDIT MADE PART OF GENERAL BUSINESS CREDIT- Subsection (b) of section 38 of the Internal Revenue Code of 1986 is amended by striking ‘plus’ at the end of paragraph (35), by striking the period at the end of paragraph (36) and inserting ‘, plus’, and by adding at the end the following new paragraph:CommentsClose CommentsPermalink





‘(37) the renewable electricity integration credit determined under section 45S(a).’.CommentsClose CommentsPermalink





(3) SPECIFIED CREDIT- Subparagraph (B) of section 38(c)(4) of the Internal Revenue Code of 1986 is amended by redesignating clauses (vii) through (ix) as clauses (viii) through (x), respectively, and by inserting after clause (v) the following new clause:CommentsClose CommentsPermalink





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





(4) 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 adding at the end the following new item:CommentsClose CommentsPermalink





‘Sec. 45S. Renewable electricity integration credit.’.CommentsClose CommentsPermalink





(b) Payments in Lieu of Credit-CommentsClose CommentsPermalink





(1) IN GENERAL- Subchapter B of chapter 65 of the Internal Revenue Code of 1986 is amended by adding at the end the following new section:CommentsClose CommentsPermalink

‘SEC. 6433. RENEWABLE ELECTRICITY INTEGRATION PAYMENTS.

‘(a) In General- If any eligible person sells renewable electricity to a retail customer, the Secretary shall pay (without interest) to any such person who elects to receive a payment an amount equal to the product of--CommentsClose CommentsPermalink





‘(1) the intermittent renewable portfolio factor of such eligible person; andCommentsClose CommentsPermalink





‘(2) the number of kilowatt hours of renewable electricity--CommentsClose CommentsPermalink





‘(A) purchased or produced by such person; andCommentsClose CommentsPermalink





‘(B) sold by such person in the trade or business of such person to a retail customer.CommentsClose CommentsPermalink





‘(b) Timing of Payments-CommentsClose CommentsPermalink





‘(1) IN GENERAL- Except as provided in paragraph (2), rules similar to the rules of section 6427(i)(1) shall apply for purposes of this section.CommentsClose CommentsPermalink





‘(2) QUARTERLY PAYMENTS-CommentsClose CommentsPermalink





‘(A) IN GENERAL- If, at the close of any quarter of the taxable year of any person, at least $750 is payable in the aggregate under subsection (a), to such person with respect to electricity purchased or produced during--CommentsClose CommentsPermalink





‘(i) such quarter; orCommentsClose CommentsPermalink





‘(ii) any prior quarter (for which no other claim has been filed) during such taxable year, a claim may be filed under this section with respect to such electricity.CommentsClose CommentsPermalink





‘(B) TIME FOR FILING CLAIM- No claim filed under this paragraph shall be allowed unless filed on or before the last day of the first quarter following the earliest quarter included in the claim.CommentsClose CommentsPermalink





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





‘(1) ELIGIBLE PERSON- The term ‘eligible person’ means an electric utility (as defined in section 3(22) of the Federal Power Act (16 U.S.C. 796(22)).CommentsClose CommentsPermalink





‘(2) OTHER DEFINITIONS- Any term used in this section which is also used in section 45S shall have the meaning given such term under section 45S.CommentsClose CommentsPermalink





‘(3) APPLICATION OF OTHER RULES- For purposes of this section, rules similar to the rules of paragraphs (1) and (3) of section 45(e) shall apply.CommentsClose CommentsPermalink





‘(d) Payment Disallowed Unless Amount Passed to Third Party Generators Charged for Integration Costs-CommentsClose CommentsPermalink





‘(1) IN GENERAL- In the case of renewable electricity eligible for the payment under subsection (a) that is purchased and not produced by an eligible person, no payment shall be made under this section unless any charge the eligible person has assessed the seller to recover the integration costs associated with such electricity has been reduced (but not below zero) to the extent of the payment received under subsection (a) associated with such electricity.CommentsClose CommentsPermalink





‘(2) DEFINITIONS- For purposes of paragraph (1), charges intended to recover integration costs do not include amounts paid by the producer of the electricity for interconnection facilities, distribution upgrades, network upgrades, or stand alone network upgrades as those terms have been defined by the Federal Energy Regulatory Commission in its Standard Interconnection Procedures.’.CommentsClose CommentsPermalink





(2) CLERICAL AMENDMENT- The table of sections for subpart B of chapter 65 of the Internal Revenue Code of 1986 is amended by adding at the end the following new item:CommentsClose CommentsPermalink





‘Sec. 6433. Renewable electricity integration payments.’.CommentsClose CommentsPermalink





(c) Effective Date- The amendments made by this section shall apply to electricity produced or purchased after December 31, 2010.CommentsClose CommentsPermalink