II

107TH CONGRESS

1ST SESSION S. 1219

To amend the Internal Revenue Code of 1986 to include swine and bovine

waste nutrients as a renewable energy resource for the renewable electricity production credit, and for other purposes.

IN THE SENATE OF THE UNITED STATES

JULY 23, 2001

Mr. GRASSLEY 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 include

swine and bovine waste nutrients as a renewable energy

resource for the renewable electricity production 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 ‘‘Providing Opportuni5 ties With Effluent Renewables (POWER) Act’’.
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1 SEC. 2. MODIFICATIONS TO CREDIT FOR ELECTRICITY

2 PRODUCED FROM RENEWABLE RESOURCES.

3 (a) EXPANSION OF QUALIFIED ENERGY RE4 SOURCES.—

5 (1) IN GENERAL.—Section 45(c)(1) of the In6 ternal Revenue Code of 1986 (defining qualified en7 ergy resources) is amended by striking ‘‘and’’ at the

8 end of subparagraph (B), by striking the period at

9 the end of subparagraph (C) and inserting ‘‘, and’’,

10 and by adding at the end the following new subpara11 graph:

12 ‘‘(D) swine and bovine waste nutrients.’’.

13 (2) DEFINITION.—Section 45(c) of such Code

14 (relating to definitions) is amended by adding at the

15 end the following new paragraph:

16 ‘‘(5) SWINE AND BOVINE WASTE NUTRIENTS.—

17 The term ‘swine and bovine waste nutrients’ means

18 swine and bovine manure and litter, including bed19 ding material for the disposition of manure.’’.

20 (b) EXTENSION AND MODIFICATION OF

21 PLACED-IN-SERVICE RULES.—Section 45(c)(3) of

22 the Internal Revenue Code of 1986 (relating to

23 qualified facility is amended by adding at the end

24 the following new subparagraph:

25 ‘‘(D) SWINE AND BOVINE WASTE NUTRI26 ENTS FACILITY.—In the case of a facility using
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•S 1219 IS

1 swine and bovine waste nutrients to produce

2 electricity, the term ‘qualified facility’ means

3 any facility owned by the taxpayer which is

4 originally placed in service after December 31,

5 2001, and before January 1, 2007.’’.

6 (c) EXEMPTION FROM CREDIT REDUCTION.—Sec7 tion 45(b)(3) of the Internal Revenue Code of 1986 (relat8 ing to credit reduced for grants, tax-exempt bonds, sub9 sidized energy financing, and other credits) is amended

10 by adding at the end the following new sentence: ‘‘This

11 paragraph shall not apply to any project related to a quali12 fied facility described in subsection (c)(3)(D).’’.

13 (d) EFFECTIVE DATE.—The amendments made by

14 this section shall apply to electricity produced after De15 cember 31, 2001.

16 SEC. 3. ANAEROBIC DIGESTION SYSTEMS.

17 Section 1240G(c) of the Food Security Act of 1985

18 (16 U.S.C. 3839aa–7(c)) is amended by striking ‘‘until the

19 subsequent fiscal year.’’ and inserting the following:

20 ‘‘until—

21 ‘‘(1) the subsequent fiscal year; or

22 ‘‘(2) in the case of a contract to implement an

23 anaerobic digestion system implemented as a compo-
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1 nent of a nutrient management system, the 2 subse2 quent fiscal years.’’.

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