II 

111TH CONGRESS 

2D SESSION H. R. 4168 

IN THE SENATE OF THE UNITED STATES 

SEPTEMBER 29, 2010 

Received; read the first time 

AN ACT 

To amend the Internal Revenue Code of 1986 to expand 

the definition of cellulosic biofuel to include algae-based 

biofuel for purposes of the cellulosic biofuel producer 

credit and the special allowance for cellulosic biofuel 

plant property. 

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. SHORT TITLE. 

2 This Act may be cited as the ‘‘Algae-based Renewable 

3 Fuel Promotion Act of 2010’’. 

4 SEC. 2. ALGAE TREATED AS A QUALIFIED FEEDSTOCK FOR 

5 PURPOSES OF THE CELLULOSIC BIOFUEL 

6 PRODUCER CREDIT, ETC. 

7 (a) IN GENERAL.—Subclause (I) of section 

8 40(b)(6)(E)(i) of the Internal Revenue Code of 1986 is 

9 amended to read as follows: 

10 ‘‘(I) is derived solely from quali11 fied feedstocks, and’’. 

12 (b) QUALIFIED FEEDSTOCK; SPECIAL RULES FOR

13 ALGAE.—Paragraph (6) of section 40(b) of such Code is 

14 amended by redesignating subparagraphs (F), (G), and 

15 (H) as subparagraphs (H), (I), and (J), respectively, and 

16 by inserting after subparagraph (E) the following new 

17 subparagraphs: 

18 ‘‘(F) QUALIFIED FEEDSTOCK.—For pur19 poses of this paragraph, the term ‘qualified 

20 feedstock’ means— 

21 ‘‘(i) any lignocellulosic or 

22 hemicellulosic matter that is available on a 

23 renewable or recurring basis, and 

24 ‘‘(ii) any cultivated algae, 

25 cyanobacteria, or lemna. 


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1 ‘‘(G) SPECIAL RULES FOR ALGAE.—In the 

2 case of fuel which is derived from feedstock de3 scribed in subparagraph (F)(ii) and which is 

4 sold by the taxpayer to another person for re5 fining by such other person into a fuel which 

6 meets the requirements of subparagraph 

7 (E)(i)(II)— 

8 ‘‘(i) such sale shall be treated as de9 scribed in subparagraph (C)(i), 

10 ‘‘(ii) such fuel shall be treated as 

11 meeting the requirements of subparagraph 

12 (E)(i)(II) in the hands of such taxpayer, 

13 and 

14 ‘‘(iii) except as provided in this sub15 paragraph, such fuel (and any fuel derived 

16 from such fuel) shall not be taken into ac17 count under subparagraph (C) with respect 

18 to the taxpayer or any other person.’’. 

19 (c) ALGAE TREATED AS A QUALIFIED FEEDSTOCK

20 FOR PURPOSES OF BONUS DEPRECIATION FOR BIOFUEL

21 PLANT PROPERTY.— 

22 (1) IN GENERAL.—Subparagraph (A) of section 

23 168(l)(2) of such Code is amended by striking ‘‘sole24 ly to produce cellulosic biofuel’’ and inserting ‘‘solely 


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1 to produce second generation biofuel (as defined in 

2 section 40(b)(6)(E)’’. 

3 (2) CONFORMING AMENDMENTS.—Subsection 

4 (l) of section 168 of such Code is amended— 

5 (A) by striking ‘‘cellulosic biofuel’’ each 

6 place it appears in the text thereof and insert7 ing ‘‘second generation biofuel’’, 

8 (B) by striking paragraph (3) and redesig9 nating paragraphs (4) through (8) as para10 graphs (3) through (7), respectively, 

11 (C) by striking ‘‘CELLULOSIC’’ in the 

12 heading of such subsection and inserting ‘‘SEC13 OND GENERATION’’, and 

14 (D) by striking ‘‘CELLULOSIC’’ in the head15 ing of paragraph (2) and inserting ‘‘SECOND

16 GENERATION’’. 

17 (d) CONFORMING AMENDMENTS.— 

18 (1) Section 40 of such Code, as amended by 

19 subsection (b), is amended— 

20 (A) by striking ‘‘cellulosic biofuel’’ each 

21 place it appears in the text thereof and insert22 ing ‘‘second generation biofuel’’, 

23 (B) by striking ‘‘CELLULOSIC’’ in the 

24 headings of subsections (b)(6), (b)(6)(E), and 


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1 (d)(3)(D) and inserting ‘‘SECOND GENERA2 TION’’, and 

3 (C) by striking ‘‘CELLULOSIC’’ in the head4 ings of subsections (b)(6)(C), (b)(6)(D), 

5 (b)(6)(H), (d)(6), and (e)(3) and inserting 

6 ‘‘SECOND GENERATION’’. 

7 (2) Clause (ii) of section 40(b)(6)(E) of such 

8 Code is amended by striking ‘‘Such term shall not’’ 

9 and inserting ‘‘The term ‘second generation biofuel’ 

10 shall not’’. 

11 (3) Paragraph (1) of section 4101(a) of such 

12 Code is amended by striking ‘‘cellulosic biofuel’’ and 

13 inserting ‘‘second generation biofuel’’. 

14 (e) EFFECTIVE DATE.— 

15 (1) IN GENERAL.—Except as provided in para16 graph (2), the amendments made by this section 

17 shall apply to fuels sold or used after the date of the 

18 enactment of this Act. 

19 (2) APPLICATION TO BONUS DEPRECIATION.— 

20 The amendments made by subsection (c) shall apply 

21 to property placed in service after the date of the en22 actment of this Act. 

23 SEC. 3. PAYGO COMPLIANCE. 

24 The budgetary effects of this Act, for the purpose of 

25 complying with the Statutory Pay-As-You-Go Act of 2010, 


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1 shall be determined by reference to the latest statement 

2 titled ‘‘Budgetary Effects of PAYGO Legislation’’ for this 

3 Act, submitted for printing in the Congressional Record 

4 by the Chairman of the House Budget Committee, pro5 vided that such statement has been submitted prior to the 

6 vote on passage. 

Passed the House of Representatives September 28, 

2010. 

Attest: LORRAINE C. MILLER, 

Clerk. 


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