I

106TH CONGRESS

1ST SESSION H. R. 750

To amend the Internal Revenue Code of 1986 to provide a 5-year extension

of the credit for producing electricity from wind, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

FEBRUARY 11, 1999

Mr. THOMAS (for himself, Ms. DUNN, Mr. SALMON, Mr. HINCHEY, Mr.

RAMSTAD, Mr. MINGE, Mr. MATSUI, Mr. BOYD, Mr. EHLERS, Mr.

KLECZKA, Mr. BEREUTER, Mr. POMEROY, Mr. GEORGE MILLER of California, Mr. LEACH, Mr. STUPAK, Mr. HASTINGS of Florida, Mrs. THURMAN, Mr. KUCINICH, Mr. LEVIN, Mr. DEUTSCH, Mr. FOLEY, Mr. DAVIS

of Florida, Mr. UDALL of Colorado, Mr. WELLER, Mr. EWING, Mr.

BOEHLERT, Mr. LEWIS of Georgia, Mrs. MEEK of Florida, Mr. HOUGHTON, Mr. MCDERMOTT, Mr. PALLONE, Mr. FROST, Mrs. BONO, Mr.

STEARNS, Mr. DEFAZIO, Mr. ABERCROMBIE, Mr. BALDACCI, Mr. NEAL

of Massachusetts, Mr. BROWN of Ohio, Mr. TAUZIN, Mr. PORTMAN, Mr.

SHAW, Mr. LATHAM, Mr. OBERSTAR, Mr. GORDON, Mr. CARDIN, Mr.

BECERRA, Mr. MCCRERY, Mr. WATKINS, Mr. HALL of Texas, Mr. SANDERS, Mr. SHAYS, Mr. SCOTT, Mrs. CAPPS, Ms. RIVERS, Ms. ROSLEHTINEN, Mr. WEXLER, Ms. WOOLSEY, Mr. EVANS, Mr. SCHAFFER,

and Mr. DIAZ-BALART) 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 provide

a 5-year extension of the credit for producing electricity

from wind, 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,
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1 SECTION 1. 5-YEAR EXTENSION OF CREDIT FOR PRODUC2 ING ELECTRICITY FROM WIND.

3 (a) IN GENERAL.—Paragraph (3) of section 45(c) of

4 the Internal Revenue Code of 1986 (defining qualified fa5 cility) is amended to read as follows:

6 ‘‘(3) QUALIFIED FACILITY.—The term ‘quali7 fied facility’ means any facility owned by the tax8 payer which is originally placed in service—

9 ‘‘(A) in the case of a facility using wind to

10 produce electricity, after December 31, 1993,

11 and before July 1, 2004, and

12 ‘‘(B) in the case of a facility using closed13 loop biomass to produce electricity, after De14 cember 31, 1992, and before July 1, 1999.’’.

15 (b) CREDIT NOT TO APPLY TO ELECTRICITY SOLD

16 TO UTILITIES UNDER CERTAIN CONTRACTS.—Subsection

17 (b) of section 45 of such Code is amended by adding at

18 the end the following new paragraph:

19 ‘‘(4) CREDIT NOT TO APPLY TO ELECTRICITY

20 SOLD TO UTILITIES UNDER CERTAIN CONTRACTS.—

21 ‘‘(A) IN GENERAL.—The credit determined

22 under subsection (a) shall not apply to

23 electricity—

24 ‘‘(i) produced at a qualified facility

25 placed in service by the taxpayer after

26 June 30, 1999, and
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1 ‘‘(ii) sold to a utility pursuant to a

2 contract originally entered into before Jan3 uary 1, 1987 (whether or not amended or

4 restated after that date).

5 ‘‘(B) EXCEPTION.—Subparagraph (A)

6 shall not apply if—

7 ‘‘(i) the prices for energy and capacity

8 from such facility are established pursuant

9 to an amendment to the contract referred

10 to in subparagraph (A)(ii);

11 ‘‘(ii) such amendment provides that

12 the prices set forth in the contract which

13 exceed avoided cost prices determined at

14 the time of delivery shall apply only to an15 nual quantities of electricity (prorated for

16 partial years) which do not exceed the

17 greater of—

18 ‘‘(I) the average annual quantity

19 of electricity sold to the utility under

20 the contract during calendar years

21 1994, 1995, 1996, 1997, and 1998,

22 or

23 ‘‘(II) the estimate of the annual

24 electricity production set forth in the

25 contract, or, if there is no such esti-
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1 mate, the greatest annual quantity of

2 electricity sold to the utility under the

3 contract in any of the calendar years

4 1996, 1997, or 1998; and

5 ‘‘(iii) such amendment provides that

6 energy and capacity in excess of the limita7 tion in clause (ii) may be—

8 ‘‘(I) sold to the utility only at

9 prices that do not exceed avoided cost

10 prices determined at the time of deliv11 ery, or

12 ‘‘(II) sold to a third party subject

13 to a mutually agreed upon advance

14 notice to the utility.

15 For purposes of this subparagraph, avoided cost

16 prices shall be determined as provided for in 18

17 CFR 292.304(d)(1) or any successor regula18 tion.’’.

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