I 

110TH CONGRESS 

1ST SESSION H. R. 1976 

To amend the Internal Revenue Code of 1986 to modify the refined coal 

credit to include qualified coal waste sludge recycling. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 20, 2007 

Mr. DOYLE (for himself, Mr. TIM MURPHY of Pennsylvania, Mr. ENGLISH of 

Pennsylvania, Mrs. CAPITO, Mr. MOLLOHAN, Mr. DINGELL, Mr. RAHALL, 

Mr. HOLDEN, and Mr. CARNEY) 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 modify 

the refined coal credit to include qualified coal waste 

sludge recycling. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. MODIFICATION OF REFINED COAL CREDIT TO 

4 INCLUDE QUALIFIED COAL WASTE SLUDGE 

5 RECYCLING. 

6 (a) IN GENERAL.—Section 45 of the Internal Rev7 enue Code of 1986 (relating to electricity produced from 

8 certain renewable resources, etc.) is amended— 


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1 (1) in subsection (b)(2) by inserting ‘‘the $3.00 

2 amount in subsection (e)(8)(B),’’ after ‘‘the $4.375 

3 amount in subsection (e)(8)(A),’’, 

4 (2) in subsection (b)(2) by striking ‘‘subsection 

5 (e)(8)(B)(i)’’ and inserting ‘‘subsection (e)(8)(C)(i)’’, 

6 (3) in subsection (c)(7) by adding at the end 

7 the following: 

8 ‘‘(C) REFINED COAL FROM A QUALIFIED

9 COAL WASTE SLUDGE RECYCLING PROCESS.— 

10 Refined coal shall also include, without regard 

11 to subparagraphs (A) and (B) hereof, a solid 

12 fuel produced from a qualified coal waste sludge 

13 recycling process.’’, 

14 (4) in subsection (d)(8) by striking ‘‘2009.’’ 

15 and inserting ‘‘2009, or in the case of a facility that 

16 uses a qualified coal waste sludge recycling process, 

17 a facility that was placed in service not later than 

18 one year after the date of enactment of the credit 

19 under this section for refined coal from a qualified 

20 coal waste sludge recycling process. For purposes of 

21 this subsection, a qualified coal waste sludge recy22 cling facility shall be treated as placed in service 

23 when such facility is in place and functioning to 

24 process coal with coal waste sludge. A ‘qualified coal 

25 waste sludge recycling facility’ includes a plant, comVerDate Aug 31 2005 16:10 Apr 22, 2007 Jkt 059200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H1976.IH H1976

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1 prised of one or more batch tanks and/or one or 

2 more storage tanks, steam and spray pipes, proc3 essing pumps, variable speed drives, a flowmeter and 

4 related electrical equipment, that processes coal and 

5 liquefied coal waste sludge.’’, 

6 (5) in subsection (e)(8)(A) by inserting ‘‘(other 

7 than refined coal from a qualified coal waste sludge 

8 recycling process)’’ after ‘‘refined coal’’ the first 

9 place it appears, 

10 (6) in subsection (e)(8) by redesignating sub11 paragraphs (B) and (C) as subparagraphs (C) and 

12 (D), respectively, and by inserting after subpara13 graph (A) the following new subparagraph: 

14 ‘‘(B) AVAILABILITY AND DETERMINATION

15 OF CREDIT AMOUNT FOR REFINED COAL FROM

16 A QUALIFIED COAL WASTE SLUDGE RECYCLING

17 PROCESS.—In the case of a producer of refined 

18 coal from a qualified coal waste sludge recycling 

19 process, there shall be allowed a credit for the 

20 taxable year under this section of $3.00 per 

21 barrel-of-oil equivalent of refined coal from a 

22 qualified coal waste sludge recycling process— 

23 ‘‘(i) produced by the taxpayer at a fa24 cility using a refined coal from qualified 

25 coal waste sludge recycling process during 


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1 the period beginning on the date of enact2 ment of this subparagraph and ending on 

3 the date that is four years from the later 

4 of the first day of the fifth full month after 

5 the date of enactment of this subparagraph 

6 or its placed-in-service date, and 

7 ‘‘(ii) sold by the taxpayer— 

8 ‘‘(I) to an unrelated person, and 

9 ‘‘(II) during such period and tax10 able year. 

11 For purposes of the preceding sentence, 

12 barrel-of-oil equivalent is the amount of re13 fined coal from a qualified coal waste 

14 sludge recycling process that has a Btu 

15 content of 5.8 million.’’, 

16 (7) in subsection (e)(8)(C), as redesignated by 

17 paragraph (6), by striking ‘‘The amount’’ and in18 serting ‘‘Except for a facility producing refined coal 

19 from a qualified coal waste sludge recycling process, 

20 the amount’’, 

21 (8) in subsection (e)(8), as amended by para22 graph (6), by adding at the end the following new 

23 subparagraph: 

24 ‘‘(E) QUALIFIED COAL WASTE SLUDGE RE25 CYCLING PROCESS.— 


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1 ‘‘(i) DEFINITION.—For purposes of 

2 this section, a ‘qualified coal waste sludge 

3 recycling process’ means a process using a 

4 facility to liquefy coal waste sludge and 

5 distribute the liquefied coal waste sludge 

6 on the coal to create a feedstock for the 

7 manufacture of coke. The term ‘coal waste 

8 sludge’ means the tar decanter sludge and 

9 related byproducts of the coking process, 

10 including such materials that have been 

11 stored in ground, in tanks and in lagoons, 

12 that have been treated as hazardous wastes 

13 under applicable Federal environmental 

14 rules absent liquefaction and processing 

15 with coal into a feedstock for the manufac16 ture of coke. The process liquefies coal 

17 waste sludge and distributes approximately 

18 one-quarter to one-half gallon of liquefied 

19 coal waste sludge per each ton of metallur20 gical coal. Liquefied coal waste sludge in 

21 excess of such amounts would have adverse 

22 effects on the operations and equipment of 

23 the coke batteries that use refined coal 

24 from a qualified coal waste sludge recy25 cling process as a feedstock for coke. Coal 


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1 waste sludge has an energy content rang2 ing from 7,000 to 16,000 Btus per pound. 

3 ‘‘(ii) INTERACTION BETWEEN SEC4 TION 45 AND SECTION 45k; CROSS REF5 ERENCE.—A taxpayer selling refined coal 

6 from a qualified coal waste sludge recy7 cling process shall be entitled to a credit 

8 under this section for all such refined coal 

9 that meets the requirements of this sec10 tion. The credit under this section shall be 

11 available notwithstanding the fact that 

12 such refined coal is purchased for use as a 

13 feedstock for coke by a taxpayer that has 

14 previously claimed credits under section 

15 45K for the production of coke or coke 

16 gas. For rules applicable to taxpayers pro17 ducing coke or coke gas from refined coal 

18 from a qualified coal waste sludge recy19 cling process, see section 45K(h).’’, and 

20 (9) in subsection (e)(9)(B) by striking ‘‘The 

21 term’’ and inserting ‘‘Except for a facility producing 

22 refined coal from a qualified coal waste sludge recy23 cling process, the term’’. 


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1 (b) NO DOUBLE BENEFIT; CROSS REFERENCE.— 

2 Section 45K of such Code is amended by adding at the 

3 end the following new subsection: 

4 ‘‘(h) NO DOUBLE BENEFIT; CROSS REFERENCE.— 

5 No credit shall be allowed under this section for coke or 

6 coke gas manufactured from refined coal from a qualified 

7 coal waste sludge recycling process (as defined by section 

8 45(e)(8)(E)(i)) for which credits have been claimed under 

9 section 45; provided that taxpayers may claim the credit 

10 under this section for coke or coke gas produced from 

11 feedstocks for which a refined coal credit under section 

12 45 has not been claimed. For rules governing the inter13 action of section 45 and this section that are applicable 

14 to taxpayers producing refined coal from a qualified coal 

15 waste sludge recycling process, see section 

16 45(e)(8)(E)(ii).’’. 

17 (c) EFFECTIVE DATE.—The amendments made by 

18 this Act shall apply to refined coal produced after the date 

19 of enactment of this Act. 

Æ 


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