II 

114TH CONGRESS 

1ST SESSION S. 1656 

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 

JUNE 24, 2015 

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

COLLINS, Mr. BENNET, Mr. GARDNER, and Mr. KING) 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 21:21 Jun 26, 2015 Jkt 049200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S1656.IS S1656

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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) ELECTRICITY STORAGE DE8 VICES.—The receipt and sale of electric 

9 power that has been stored in a device di10 rectly connected to the grid. 

11 ‘‘(iv) COMBINED HEAT AND POWER.— 

12 The generation, storage, or distribution of 

13 thermal energy exclusively utilizing prop14 erty described in section 48(c)(3) (deter15 mined without regard to subparagraphs 

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

17 any placed in service date). 

18 ‘‘(v) RENEWABLE THERMAL EN19 ERGY.—The generation, storage, or dis20 tribution of thermal energy exclusively 

21 using any resource described in section 

22 45(c)(1) or energy property described in 

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

24 ‘‘(vi) WASTE HEAT TO POWER.—The 

25 use of recoverable waste energy, as defined 


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

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

3 in effect on the date of the enactment of 

4 the Master Limited Partnerships Parity 

5 Act). 

6 ‘‘(vii) RENEWABLE FUEL INFRA7 STRUCTURE.—The storage or transpor8 tation of any fuel described in subsection 

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

10 ‘‘(viii) RENEWABLE FUELS.—The pro11 duction, storage, or transportation of any 

12 renewable fuel described in section 

13 211(o)(1)(J) of the Clean Air Act (42 

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

15 date of the enactment of the Master Lim16 ited Partnerships Parity Act) or section 

17 40A(d)(1). 

18 ‘‘(ix) RENEWABLE CHEMICALS.—The 

19 production, storage, or transportation of 

20 any qualifying renewable chemical (as de21 fined in paragraph (6)). 

22 ‘‘(x) ENERGY EFFICIENT BUILD23 INGS.—The audit and installation through 

24 contract or other agreement of any energy 


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1 efficient building property described in sec2 tion 179D(c)(1). 

3 ‘‘(xi) GASIFICATION WITH SEQUES4 TRATION.—The production of any product 

5 or the generation of electric power from a 

6 project that meets the requirements of sub7 paragraphs (A) and (B) of section 

8 48B(c)(1) and that separates and seques9 ters in secure geological storage (as deter10 mined under section 45Q(d)(2)) at least 75 

11 percent of such project’s total qualified 

12 carbon dioxide (as defined in section 

13 45Q(b)). 

14 ‘‘(xii) CARBON CAPTURE AND SEQUES15 TRATION.— 

16 ‘‘(I) POWER GENERATION FACILI17 TIES.—The generation or storage of 

18 electric power (including associated 

19 income from the sale or marketing of 

20 energy, capacity, resource adequacy, 

21 and ancillary services) produced from 

22 any power generation facility which is, 

23 or from any power generation unit 

24 within, a qualified facility described in 

25 section 45Q(c) which— 


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1 ‘‘(aa) in the case of a power 

2 generation facility or power gen3 eration unit placed in service 

4 after January 8, 2013, captures 

5 50 percent or more of the quali6 fied carbon dioxide (as defined in 

7 section 45Q(b)) of such facility 

8 and disposes of such captured 

9 qualified carbon dioxide in secure 

10 geological storage (as determined 

11 under section 45Q(d)(2)), and 

12 ‘‘(bb) in the case of a power 

13 generation facility or power gen14 eration unit placed in service be15 fore January 9, 2013, captures 

16 30 percent or more of the quali17 fied carbon dioxide (as defined in 

18 section 45Q(b)) of such facility 

19 and disposes of such captured 

20 qualified carbon dioxide in secure 

21 geological storage (as determined 

22 under section 45Q(d)(2)). 

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 in 

5 secure geological storage (as deter6 mined under section 45Q(d)(2)).’’. 

7 (b) RENEWABLE CHEMICAL.— 

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

9 Code is amended by adding at the end the following 

10 new paragraph: 

11 ‘‘(6) QUALIFYING RENEWABLE CHEMICAL.— 

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

13 renewable chemical’ means any renewable chem14 ical (as defined in section 9001 of the Agri15 culture Act of 2014)— 

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

17 in the United States or in a territory or 

18 possession of the United States, 

19 ‘‘(ii) which is the product of, or reli20 ant upon, biological conversion, thermal 

21 conversion, or a combination of biological 

22 and thermal conversion, of renewable bio23 mass (as defined in section 9001(12) of 

24 the Farm Security and Rural Investment 

25 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, aromatics, 1,4- 

16 butanediol, iso-butanol, n-butanol, 

17 carboxylic acids, cellulosic sugar, 

18 diethyl methylene malonate, ethyl ace19 tate, farnesene, gamma-butyrolactone, 

20 glucaric acid, hexamethylenediamine, 

21 3-hydroxy propionic acid, C10 hydro22 carbons, isoprene, itaconic acid, 

23 ketals, levulinic acid, olefins, 

24 polyhydroxyalkonate, polylactic acid, 

25 polyitaconic acid, polyols from vegeVerDate Sep 11 2014 21:21 Jun 26, 2015 Jkt 049200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\S1656.IS S1656

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1 table oils, poly(xylitan levulinate 

2 ketal), 1,3-propanediol, 1,2- 

3 propanediol, succinic acid, terpenes, 

4 thiols, or p-Xylene, or 

5 ‘‘(II) any chemical not described 

6 in clause (i) which is a chemical listed 

7 by the Secretary for purposes of this 

8 paragraph. 

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

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

11 content percentage’ means, with respect to any 

12 renewable chemical, the biobased content of 

13 such chemical (expressed as a percentage) de14 termined by testing representative samples 

15 using the American Society for Testing and 

16 Materials (ASTM) D6866.’’. 

17 (2) LIST OF OTHER QUALIFYING RENEWABLE

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

19 of the enactment of this Act, the Secretary of the 

20 Treasury (or the Secretary’s delegate), in consulta21 tion with the Secretary of Agriculture, shall establish 

22 a program to consider applications from taxpayers 

23 for the listing of chemicals under section 

24 7874(d)(6)(A)(vi)(II) (as added by paragraph (1)). 


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

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

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

Æ 


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