II 

115TH CONGRESS 

1ST SESSION S. 2005 

To amend the Internal Revenue Code of 1986 to extend the publicly traded 

partnership ownership structure to energy power generation projects and 

transportation fuels, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

OCTOBER 25, 2017 

Mr. COONS (for himself, Mr. MORAN, Ms. STABENOW, Mr. GARDNER, Mr. 

BENNET, Ms. MURKOWSKI, Mr. KING, Ms. COLLINS, and Mr. HEINRICH) 

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 extend 

the publicly traded partnership ownership structure to 

energy power generation projects and transportation 

fuels, 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 ‘‘Master Limited Part5 nerships Parity Act’’. 


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1 SEC. 2. EXTENSION OF PUBLICLY TRADED PARTNERSHIP 

2 OWNERSHIP STRUCTURE TO ENERGY POWER 

3 GENERATION PROJECTS, TRANSPORTATION 

4 FUELS, AND RELATED ENERGY ACTIVITIES. 

5 (a) IN GENERAL.—Subparagraph (E) of section 

6 7704(d)(1) of the Internal Revenue Code of 1986 is 

7 amended— 

8 (1) by striking ‘‘income and gains derived from 

9 the exploration’’ and inserting ‘‘income and gains 

10 derived from the following: 

11 ‘‘(i) MINERALS, NATURAL RE12 SOURCES, ETC.—The exploration’’; 

13 (2) by inserting ‘‘or’’ before ‘‘industrial 

14 source’’; 

15 (3) by inserting a period after ‘‘carbon diox16 ide’’; and 

17 (4) by striking ‘‘, or the transportation or stor18 age’’ and all that follows and inserting the following: 

19 ‘‘(ii) RENEWABLE ENERGY.—The gen20 eration of electric power (including the 

21 leasing of tangible personal property used 

22 for such generation) exclusively utilizing 

23 any resource described in section 45(c)(1) 

24 or energy property described in section 48 

25 (determined without regard to any termi26 nation date), or in the case of a facility deVerDate Sep 11 2014 00:27 Oct 27, 2017 Jkt 079200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S2005.IS S2005

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1 scribed in paragraph (3) or (7) of section 

2 45(d) (determined without regard to any 

3 placed in service date or date by which 

4 construction of the facility is required to 

5 begin), the accepting or processing of such 

6 resource. 

7 ‘‘(iii) ENERGY STORAGE PROPERTY.— 

8 The sale of electric power, capacity, re9 source adequacy, demand response capa10 bilities, or ancillary services that is pro11 duced or made available from any equip12 ment or facility (operating as a single unit 

13 or as an aggregation of units) the principal 

14 function of which is to— 

15 ‘‘(I) use mechanical, chemical, 

16 electrochemical, hydroelectric, or ther17 mal processes to store energy that was 

18 generated at one time for conversion 

19 to electricity at a later time, or 

20 ‘‘(II) store thermal energy for di21 rect use for heating or cooling at a 

22 later time in a manner that avoids the 

23 need to use electricity at that later 

24 time. 


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1 ‘‘(iv) COMBINED HEAT AND POWER.— 

2 The generation, storage, or distribution of 

3 thermal energy exclusively utilizing prop4 erty described in section 48(c)(3) (deter5 mined without regard to subparagraphs 

6 (B) and (D) thereof and without regard to 

7 any placed in service date). 

8 ‘‘(v) RENEWABLE THERMAL EN9 ERGY.—The generation, storage, or dis10 tribution of thermal energy exclusively 

11 using any resource described in section 

12 45(c)(1) or energy property described in 

13 clause (i) or (iii) of section 48(a)(3)(A). 

14 ‘‘(vi) WASTE HEAT TO POWER.—The 

15 use of recoverable waste energy, as defined 

16 in section 371(5) of the Energy Policy and 

17 Conservation Act (42 U.S.C. 6341(5)) (as 

18 in effect on the date of the enactment of 

19 the Master Limited Partnerships Parity 

20 Act). 

21 ‘‘(vii) RENEWABLE FUEL INFRA22 STRUCTURE.—The storage or transpor23 tation of any fuel described in subsection 

24 (b), (c), (d), or (e) of section 6426. 


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1 ‘‘(viii) RENEWABLE FUELS.—The pro2 duction, storage, or transportation of any 

3 renewable fuel described in section 

4 211(o)(1)(J) of the Clean Air Act (42 

5 U.S.C. 7545(o)(1)(J)) (as in effect on the 

6 date of the enactment of the Master Lim7 ited Partnerships Parity Act) or section 

8 40A(d)(1). 

9 ‘‘(ix) FUEL DERIVED FROM CAP10 TURED CARBON DIOXIDE.—The produc11 tion, storage, or transportation of any fuel 

12 which— 

13 ‘‘(I) uses carbon dioxide captured 

14 from an anthropogenic source or the 

15 atmosphere as its primary feedstock, 

16 and 

17 ‘‘(II) is determined by the Sec18 retary, in consultation with the Sec19 retary of Energy and the Adminis20 trator of the Environmental Protec21 tion Agency, to achieve a reduction of 

22 not less than a 60 percent in lifecycle 

23 greenhouse gas emissions (as defined 

24 in section 211(o)(1)(H) of the Clean 

25 Air Act) compared to baseline lifecycle 


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1 greenhouse gas emissions (as defined 

2 in section 211(o)(1)(C) of such Act). 

3 This clause shall not apply to any fuel 

4 which uses as its primary feedstock carbon 

5 dioxide which is deliberately released from 

6 naturally-occurring subsurface springs. 

7 ‘‘(x) RENEWABLE CHEMICALS.—The 

8 production, storage, or transportation of 

9 any qualifying renewable chemical (as de10 fined in paragraph (6)). 

11 ‘‘(xi) ENERGY EFFICIENT BUILD12 INGS.—The audit and installation through 

13 contract or other agreement of any energy 

14 efficient building property described in sec15 tion 179D(c)(1). 

16 ‘‘(xii) GASIFICATION WITH SEQUES17 TRATION.—The production of any product 

18 or the generation of electric power from a 

19 project— 

20 ‘‘(I) which meets the require21 ments of subparagraphs (A) and (B) 

22 of section 48B(c)(1), and 

23 ‘‘(II) not less than 75 percent of 

24 the total carbon dioxide emissions of 

25 which is qualified carbon dioxide (as 


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1 defined in section 45Q(b)) which is 

2 disposed of or utilized as provided in 

3 paragraph (7). 

4 ‘‘(xiii) CARBON CAPTURE AND SE5 QUESTRATION.— 

6 ‘‘(I) POWER GENERATION FACILI7 TIES.—The generation or storage of 

8 electric power (including associated 

9 income from the sale or marketing of 

10 energy, capacity, resource adequacy, 

11 and ancillary services) produced from 

12 any power generation facility which is, 

13 or from any power generation unit 

14 within, a qualified facility which is de15 scribed in section 45Q(c) and not less 

16 than 50 percent (30 percent in the 

17 case of a facility or unit placed in 

18 service before January 1, 2017) of the 

19 total carbon dioxide emissions of 

20 which is qualified carbon dioxide 

21 which is disposed of or utilized as pro22 vided in paragraph (7). 

23 ‘‘(II) OTHER FACILITIES.—The 

24 sale of any good or service from any 

25 facility (other than a power generation 


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1 facility) which is a qualified facility 

2 described in section 45Q(c) and the 

3 captured qualified carbon dioxide (as 

4 so defined) of which is disposed of as 

5 provided in paragraph (7).’’. 

6 (b) RENEWABLE CHEMICAL.— 

7 (1) IN GENERAL.—Section 7704(d) of such 

8 Code is amended by adding at the end the following 

9 new paragraph: 

10 ‘‘(6) QUALIFYING RENEWABLE CHEMICAL.— 

11 ‘‘(A) IN GENERAL.—The term ‘qualifying 

12 renewable chemical’ means any renewable chem13 ical (as defined in section 9001 of the Agri14 culture Act of 2014)— 

15 ‘‘(i) which is produced by the taxpayer 

16 in the United States or in a territory or 

17 possession of the United States, 

18 ‘‘(ii) which is the product of, or reli19 ant upon, biological conversion, thermal 

20 conversion, or a combination of biological 

21 and thermal conversion, of renewable bio22 mass (as defined in section 9001(13) of 

23 the Farm Security and Rural Investment 

24 Act of 2002), 


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1 ‘‘(iii) the biobased content of which is 

2 95 percent or higher, 

3 ‘‘(iv) which is sold or used by the tax4 payer— 

5 ‘‘(I) for the production of chem6 ical products, polymers, plastics, or 

7 formulated products, or 

8 ‘‘(II) as chemicals, polymers, 

9 plastics, or formulated products, 

10 ‘‘(v) which is not sold or used for the 

11 production of any food, feed, or fuel, and 

12 ‘‘(vi) which is— 

13 ‘‘(I) acetic acid, acrylic acid, acyl 

14 glutamate, adipic acid, algae oils, 

15 algae sugars, 1,4-butanediol (BDO), 

16 iso-butanol, n-butanol, C10 and high17 er hydrocarbons produced from olefin 

18 metathesis, carboxylic acids produced 

19 from olefin metathesis, cellulosic 

20 sugar, diethyl methylene malonate, 

21 dodecanedioic acid (DDDA), esters 

22 produced from olefin metathesis, ethyl 

23 acetate, ethylene glycol, farnesene, 

24 2,5-furandicarboxylic acid, gamma-bu25 tyrolactone, glucaric acid, 


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1 hexamethylenediamine (HMD), 3-hy2 droxy propionic acid, iso-butene, iso3 prene, itaconic acid, lactide, levulinic 

4 acid, polyhydroxyalkonate (PHA), 

5 polylactic acid (PLA), polyethylene 

6 furanoate (PEF), polyethylene 

7 terephthalate (PET), polyitaconic 

8 acid, polyols from vegetable oils, 

9 poly(xylitan levulinate ketal), 1,3- 

10 propanediol, 1,2-propanediol, 

11 rhamnolipids, short and medium chain 

12 carboxylic acids produced from anaer13 obic digestion, succinic acid, tereph14 thalic acid, vegetable fatty acid de15 rived from ethyl esters containing veg16 etable oil, or p-Xylene, or 

17 ‘‘(II) any chemical not described 

18 in clause (i) which is a chemical listed 

19 by the Secretary for purposes of this 

20 paragraph. 

21 ‘‘(B) BIOBASED CONTENT.—For purposes 

22 of subparagraph (A)(iii), the term ‘biobased 

23 content percentage’ means, with respect to any 

24 renewable chemical, the biobased content of 

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1 termined by testing representative samples 

2 using the American Society for Testing and 

3 Materials (ASTM) D6866.’’. 

4 (2) LIST OF OTHER QUALIFYING RENEWABLE

5 CHEMICALS.—Not later than 180 days after the date 

6 of the enactment of this Act, the Secretary of the 

7 Treasury (or the Secretary’s delegate), in consulta8 tion with the Secretary of Agriculture, shall establish 

9 a program to consider applications from taxpayers 

10 for the listing of chemicals under section 

11 7874(d)(6)(A)(vi)(II) (as added by paragraph (1)). 

12 (c) DISPOSAL AND UTILIZATION OF CAPTURED CAR13 BON DIOXIDE.—Section 7704(d) of such Code, as amend14 ed by subsection (b), is amended by adding at the end 

15 the following new paragraph: 

16 ‘‘(7) DISPOSAL AND UTILIZATION OF CAPTURED

17 CARBON DIOXIDE.—For purposes of clauses 

18 (xii)(III) and (xiii)(I) of paragraph (1)(E), carbon 

19 dioxide is disposed of or utilized as provided in this 

20 paragraph if such carbon dioxide is— 

21 ‘‘(A) placed into secure geological storage 

22 (as determined under section 45Q(d)(2)), 

23 ‘‘(B) used as a tertiary injectant (as de24 fined in section 45Q(d)(3)) in a qualified en25 hanced oil or natural gas recovery project (as 


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1 defined in section 45Q(d)(4)) and placed into 

2 secure geological storage (as so determined), 

3 ‘‘(C) fixated through photosynthesis or 

4 chemosynthesis (such as through the growing of 

5 algae or bacteria), 

6 ‘‘(D) chemically converted to a material or 

7 chemical compound in which it is securely 

8 stored, or 

9 ‘‘(E) used for any other purpose which the 

10 Secretary determines has the potential to 

11 strengthen or significantly develop a competitive 

12 market for carbon dioxide captured from man13 made sources.’’. 

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

15 this section shall take effect on the date of the enactment 

16 of this Act, in taxable years ending after such date. 

Æ 


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