II 

116TH CONGRESS 

1ST SESSION S. 407 

To amend the Internal Revenue Code of 1986 to modify the qualifying 

advanced coal project credit, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

FEBRUARY 7, 2019 

Mr. HOEVEN (for himself, Ms. SMITH, Mr. CRAMER, Mr. MANCHIN, Mr. BARRASSO, Mr. TESTER, Mr. GRAHAM, and Mr. DAINES) introduced the following bill; which was read twice and referred to the Committee on Finance 

A BILL 

To amend the Internal Revenue Code of 1986 to modify 

the qualifying advanced coal project credit, and for other 

purposes. 

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

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Carbon Capture Mod5 ernization Act’’. 

6 SEC. 2. MODIFICATIONS OF QUALIFYING ADVANCED COAL 

7 PROJECT CREDIT. 

8 (a) SEQUESTRATION REQUIREMENT FOR CERTAIN

9 EQUIPMENT.—Section 48A(e)(1)(G) of the Internal RevVerDate Sep 11 2014 04:38 Feb 16, 2019 Jkt 089200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S407.IS S407

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1 enue Code of 1986 is amended by inserting ‘‘and 60 per2 cent in the case of an application for a reallocation of cred3 its under subsection (d)(4) with respect to an electrical 

4 generating unit in existence on October 3, 2008’’ after 

5 ‘‘under subsection (d)(4)’’. 

6 (b) NAMEPLATE GENERATING CAPACITY REQUIRE7 MENT.—Section 48A(e)(1)(C) of such Code is amended by 

8 striking ‘‘400 megawatts’’ and inserting ‘‘200 

9 megawatts’’. 

10 (c) ADVANCED COAL-BASED GENERATION TECH11 NOLOGY REQUIREMENTS.— 

12 (1) IN GENERAL.—Section 48A(f)(1) of such 

13 Code is amended by striking ‘‘generation technology 

14 if—’’ and all that follows through ‘‘the unit is de15 signed’’ and inserting ‘‘generation technology if the 

16 unit is designed’’. 

17 (2) CONFORMING AMENDMENTS.—Section 

18 48A(f) is amended— 

19 (A) by striking all that precedes ‘‘the pur20 pose of this section’’ and inserting the fol21 lowing: 

22 ‘‘(f) ADVANCED COAL-BASED GENERATION TECH23 NOLOGY.—For’’, 


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1 (B) by striking ‘‘in subparagraph (B)’’ in 

2 the second sentence and inserting ‘‘in this sub3 section’’, and 

4 (C) by striking paragraphs (2) and (3). 

5 (d) PERFORMANCE REQUIREMENTS IN CASE OF

6 BEST AVAILABLE CONTROL TECHNOLOGY.—Section 

7 48A(f) of such Code, as amended by this Act, is amended 

8 by adding at the end the following: ‘‘In the case of a ret9 rofit of a unit which has undergone a best available control 

10 technology analysis after August 8, 2005, with respect to 

11 the removal or emissions of any pollutant which is SO2

12 or NOx, the removal or emissions design level with respect 

13 to such pollutant shall be the level determined in such 

14 analysis.’’. 

15 (e) CLARIFICATION OF REALLOCATION AUTHOR16 ITY.—Section 48A(d)(4) of the Internal Revenue Code of 

17 1986 is amended— 

18 (1) in subparagraph (A)— 

19 (A) by striking ‘‘Not later than 6 years 

20 after the date of enactment of this section, the’’ 

21 and inserting ‘‘The’’, and 

22 (B) by inserting ‘‘and every 6 months 

23 thereafter until all credits available under this 

24 section have been allowed’’ after ‘‘the date 


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1 which is 6 years after the date of enactment of 

2 this section’’, 

3 (2) in subparagraph (B)— 

4 (A) by striking ‘‘may reallocate credits 

5 available under clauses (i) and (ii) of paragraph 

6 (3)(B)’’ and inserting ‘‘shall reallocate credits 

7 remaining available under paragraph (3)’’, 

8 (B) by striking ‘‘or’’ at the end of clause 

9 (i), and 

10 (C) by striking clause (ii) and inserting the 

11 following: 

12 ‘‘(ii) any applicant for certification 

13 which submitted an accepted application 

14 has subsequently failed to satisfy the re15 quirements under paragraph (2)(D), or 

16 ‘‘(iii) any certification made pursuant 

17 to paragraph (2) has been revoked pursu18 ant to paragraph (2)(E).’’, and 

19 (3) in subparagraph (C)— 

20 (A) by striking ‘‘clause (i) or (ii) of para21 graph (3)(B)’’ and inserting ‘‘paragraph (3)’’, 

22 (B) by striking ‘‘is authorized to’’ and in23 serting ‘‘shall’’, and 

24 (C) by striking ‘‘an additional program’’ 

25 and inserting ‘‘additional programs’’. 


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1 (f) EFFECTIVE DATE.— 

2 (1) IN GENERAL.—Except as provided in para3 graph (2), the amendments made by this section 

4 shall apply to allocations and reallocations after the 

5 date of the enactment of this Act. 

6 (2) REALLOCATION.—The amendments made 

7 by subsection (e) shall apply to credits remaining 

8 available under section 48A(d)(3) of the Internal 

9 Revenue Code of 1986 on the date of the enactment 

10 of this Act. 

Æ 


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