I 

111TH CONGRESS 

2D SESSION H. R. 6117 

To amend the Internal Revenue Code of 1986 to repeal the limitation on 

the issuance of new clean renewable energy bonds and to terminate 

eligibility of governmental bodies to issue such bonds, and for other 

purposes. 

IN THE HOUSE OF REPRESENTATIVES 

SEPTEMBER 14, 2010 

Mr. MCDERMOTT (for himself, Mr. BLUMENAUER, Mr. POMEROY, and Ms. 

LINDA T. SA ́NCHEZ of California) introduced the following bill; which was 

referred to the Committee on Ways and Means 

A BILL 

To amend the Internal Revenue Code of 1986 to repeal 

the limitation on the issuance of new clean renewable 

energy bonds and to terminate eligibility of governmental 

bodies to issue such bonds, 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 ‘‘Clean Renewable En5 ergy Investment Act of 2010’’. 


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1 SEC. 2. NEW CLEAN ENERGY RENEWABLE BONDS. 

2 (a) REPEAL OF LIMITATION ON AMOUNT OF BONDS

3 DESIGNATED.—Section 54C of the Internal Revenue Code 

4 of 1986 is amended by striking subsection (c). 

5 (b) TERMINATION.—Subsection (a) of section 54C of 

6 such Code is amended by striking ‘‘and’’ at the end of 

7 paragraph (2), by striking the period at the end of para8 graph (3), and by adding at the end the following new 

9 paragraph: 

10 ‘‘(4) such bond is issued before January 1, 

11 2014.’’. 

12 (c) RULES RELATING TO EXPENDITURES.— 

13 (1) IN GENERAL.—Paragraph (1) of section 

14 54C(a) of such Code is amended by inserting ‘‘and 

15 meet the requirements of subsection (c)’’ before the 

16 comma at the end. 

17 (2) REQUIREMENTS.—Section 54C of such 

18 Code (as amended by subsection (a) of this section) 

19 is amended by inserting after subsection (b) the fol20 lowing new subsection: 

21 ‘‘(c) RULES RELATING TO EXPENDITURES.—An 

22 issue shall be treated as meeting the requirements of this 

23 subsection if, as of the date of issuance of such issue, the 

24 issuer reasonably expects— 

25 ‘‘(1) 95 percent or more of the available project 

26 proceeds to be spent for 1 or more purposes speciVerDate Mar 15 2010 05:23 Sep 15, 2010 Jkt 089200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H6117.IH H6117

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1 fied in subsection (a)(1) within the 3-year period be2 ginning on such date of issuance, and 

3 ‘‘(2) a binding commitment with a third party 

4 to spend at least 10 percent of such available project 

5 proceeds will be incurred within the 6-month period 

6 beginning on such date of issuance.’’. 

7 (d) GOVERNMENTAL BODIES NOT ELIGIBLE.—Sec8 tion 54C of such Code, as amended by the preceding provi9 sions of this section, is amended— 

10 (1) in subsection (a) by striking ‘‘governmental 

11 bodies, public power providers, or cooperative electric 

12 companies’’ and inserting ‘‘public power providers, 

13 tribal utilities, or cooperative electric companies’’, 

14 (2) in subsection (d)(1) by striking ‘‘public 

15 power provider, a governmental body, or a coopera16 tive electric company’’ and inserting ‘‘public power 

17 provider, a tribal utility, or a cooperative electric 

18 company’’, 

19 (3) in subsection (d) by striking paragraph (3) 

20 and redesignating paragraphs (4), (5), and (6) as 

21 paragraphs (3), (4), and (5), respectively, and 

22 (4) in subsection (d)(6), by striking ‘‘a govern23 mental body,’’. 

24 (e) TRIBAL UTILITIES ELIGIBLE AS QUALIFIED

25 ISSUER.— 


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1 (1) IN GENERAL.—Paragraph (5) of section 

2 54C(d) of such Code (as amended by subsection 

3 (d)(3)) is amended by inserting ‘‘a tribal utility,’’ 

4 after ‘‘bond lender,’’. 

5 (2) TRIBAL UTILITY DEFINED.—Subsection (d) 

6 of section 54C of such Code (as so amended) is 

7 amended by adding at the end the following new 

8 paragraph: 

9 ‘‘(6) TRIBAL UTILITY.—The term ‘tribal utility’ 

10 means any enterprise, agency, authority, or instru11 mentality of any Indian tribe (as defined in section 

12 4 of the Indian Self-Determination and Education 

13 Assistance Act (25 U.S.C. 450b(e)) with a service 

14 obligation or right under tribal law and which pro15 vides electric service to end-users.’’. 

16 (f) REIMBURSEMENT WITH PROCEEDS OF TAX

17 CREDIT BONDS.—Subparagraph (D) of section 54A(d)(2) 

18 of such Code is amended by striking ‘‘for amounts paid’’ 

19 and all that follows and inserting ‘‘under rules governing 

20 obligations the interest on which is excluded from gross 

21 income by section 103.’’. 

22 (g) CONFORMING AMENDMENT.—Section 54A(d)(1) 

23 of such Code is amended by adding at the end the fol24 lowing flush sentence: ‘‘Subparagraphs (A) and (B) of 


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1 paragraph (2) shall not apply to an issue of new clean 

2 renewable energy bonds.’’. 

3 (h) EFFECTIVE DATE.— 

4 (1) IN GENERAL.—Except as provided by para5 graph (2), the amendments made by this section 

6 shall apply to obligations issued after the date of the 

7 enactment of this Act. 

8 (2) ALLOCATIONS MADE BEFORE DATE OF EN9 ACTMENT.—The amendments made by this section, 

10 other than by subsections (a), (c), and (g), shall not 

11 apply to bonds issued pursuant to any allocation of 

12 new clean renewable energy bond limitation made on 

13 or before the date of the enactment of this Act. 

Æ 


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