II 

112TH CONGRESS 

1ST SESSION S. 748 

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. 

IN THE SENATE OF THE UNITED STATES 

APRIL 6 (legislative day, APRIL 5), 2011 

Mr. NELSON of Florida (for himself, Mr. BINGAMAN, and Mr. KERRY) 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 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, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Algae-Based Renew5 able Fuel Promotion Act of 2011’’. 


smartinez on DSKB9S0YB1PROD with BILLS
2 

•S 748 IS

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

2 PURPOSES OF THE CELLULOSIC BIOFUEL 

3 PRODUCER CREDIT, ETC. 

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

5 40(b)(6)(E)(i) of the Internal Revenue Code of 1986 is 

6 amended to read as follows: 

7 ‘‘(I) is derived solely by, or from, 

8 qualified feedstocks, and’’. 

9 (b) QUALIFIED FEEDSTOCK; SPECIAL RULES FOR

10 ALGAE.—Paragraph (6) of section 40(b) of the Internal 

11 Revenue Code of 1986 is amended by redesignating sub12 paragraphs (F), (G), and (H) as subparagraphs (H), (I), 

13 and (J), respectively, and by inserting after subparagraph 

14 (E) the following new subparagraphs: 

15 ‘‘(F) QUALIFIED FEEDSTOCK.—For pur16 poses of this paragraph, the term ‘qualified 

17 feedstock’ means— 

18 ‘‘(i) any lignocellulosic or hemicellulos19 ic matter that is available on a renewable 

20 or recurring basis, and 

21 ‘‘(ii) any cultivated algae, cyanobacte22 ria, or lemna. 

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

24 case of fuel which is derived by, or from, feed25 stock described in subparagraph (F)(ii) and 

26 which is sold by the taxpayer to another person 


smartinez on DSKB9S0YB1PROD with BILLS
3 

•S 748 IS

1 for refining by such other person into a fuel 

2 which meets the requirements of subparagraph 

3 (E)(i)(II)— 

4 ‘‘(i) such sale shall be treated as de5 scribed in subparagraph (C)(i), 

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

7 meeting the requirements of subparagraph 

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

9 and 

10 ‘‘(iii) except as provided in this sub11 paragraph, such fuel (and any fuel derived 

12 from such fuel) shall not be taken into ac13 count under subparagraph (C) with respect 

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

15 (c) ALGAE TREATED AS A QUALIFIED FEEDSTOCK

16 FOR PURPOSES OF BONUS DEPRECIATION FOR BIOFUEL

17 PLANT PROPERTY.— 

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

19 168(l)(2) of the Internal Revenue Code of 1986 is 

20 amended by striking ‘‘solely to produce cellulosic 

21 biofuel’’ and inserting ‘‘solely to produce second gen22 eration biofuel (as defined in section 40(b)(6)(E))’’. 

23 (2) CONFORMING AMENDMENTS.—Subsection 

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


smartinez on DSKB9S0YB1PROD with BILLS
4 

•S 748 IS

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

2 place it appears in the text thereof and insert3 ing ‘‘second generation biofuel’’, 

4 (B) by striking paragraph (3) and redesig5 nating paragraphs (4) through (8) as para6 graphs (3) through (7), respectively, 

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

8 heading of such subsection and inserting ‘‘SEC9 OND GENERATION’’, and 

10 (D) by striking ‘‘CELLULOSIC’’ in the head11 ing of paragraph (2) and inserting ‘‘SECOND

12 GENERATION’’. 

13 (d) CONFORMING AMENDMENTS.— 

14 (1) Section 40 of the Internal Revenue Code of 

15 1986, as amended by subsection (b), is amended— 

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

17 place it appears in the text thereof and insert18 ing ‘‘second generation biofuel’’, 

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

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

21 (d)(3)(D) and inserting ‘‘SECOND GENERA22 TION’’, and 

23 (C) by striking ‘‘CELLULOSIC’’ in the head24 ings of subsections (b)(6)(C), (b)(6)(D), 


smartinez on DSKB9S0YB1PROD with BILLS
5 

•S 748 IS

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

2 ‘‘SECOND GENERATION’’. 

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

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

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

6 shall not’’. 

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

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

9 inserting ‘‘second generation biofuel’’. 

10 (e) EFFECTIVE DATE.— 

11 (1) IN GENERAL.—Except as provided in para12 graph (2), the amendments made by this section 

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

14 enactment of this Act. 

15 (2) APPLICATION TO BONUS DEPRECIATION.— 

16 The amendments made by subsection (c) shall apply 

17 to property placed in service after the date of the en18 actment of this Act. 

Æ 


smartinez on DSKB9S0YB1PROD with BILLS