II 

116TH CONGRESS 

1ST SESSION S. 1841 

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 13, 2019 

Mr. COONS (for himself, Mr. MORAN, Mr. KING, Ms. COLLINS, Mr. CARPER, 

Ms. MURKOWSKI, Mr. HEINRICH, Ms. ERNST, Mr. GARDNER, Ms. STABENOW, Mr. CRAPO, and Mr. BENNET) 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 ‘‘Financing Our Energy 

5 Future Act’’. 


pbinns on DSK79D2C42PROD with BILLS
2 

•S 1841 IS

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 02:11 Jun 19, 2019 Jkt 034408 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S1841.IS S1841

pbinns on DSK79D2C42PROD with BILLS
3 

•S 1841 IS

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. 


pbinns on DSK79D2C42PROD with BILLS
4 

•S 1841 IS

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 Financing Our Energy Future Act). 

20 ‘‘(vii) RENEWABLE FUEL INFRA21 STRUCTURE.—The storage or transpor22 tation of any fuel described in subsection 

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

24 ‘‘(viii) RENEWABLE FUELS.—The pro25 duction, storage, or transportation of any 


pbinns on DSK79D2C42PROD with BILLS
5 

•S 1841 IS

1 renewable fuel described in section 

2 211(o)(1)(J) of the Clean Air Act (42 

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

4 date of the enactment of the Financing 

5 Our Energy Future Act) or section 

6 40A(d)(1). 

7 ‘‘(ix) FUEL DERIVED FROM CAP8 TURED CARBON OXIDES.—The production, 

9 storage, or transportation of any fuel 

10 which— 

11 ‘‘(I) uses carbon oxides captured 

12 from an anthropogenic source or the 

13 atmosphere as its primary feedstock, 

14 and 

15 ‘‘(II) is determined by the Sec16 retary, in consultation with the Sec17 retary of Energy and the Adminis18 trator of the Environmental Protec19 tion Agency, to achieve a reduction of 

20 not less than a 60 percent in lifecycle 

21 greenhouse gas emissions (as defined 

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

23 Air Act) compared to baseline lifecycle 

24 greenhouse gas emissions (as defined 

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


pbinns on DSK79D2C42PROD with BILLS
6 

•S 1841 IS

1 This clause shall not apply to any fuel 

2 which uses as its primary feedstock carbon 

3 oxide which is deliberately released from 

4 naturally-occurring subsurface springs. 

5 ‘‘(x) RENEWABLE CHEMICALS.—The 

6 production, storage, or transportation of 

7 any qualifying renewable chemical (as de8 fined in paragraph (6)). 

9 ‘‘(xi) ENERGY EFFICIENT BUILD10 INGS.—The audit and installation through 

11 contract or other agreement of any energy 

12 efficient building property described in sec13 tion 179D(c)(1). 

14 ‘‘(xii) GASIFICATION WITH SEQUES15 TRATION.—The production of any product 

16 or the generation of electric power from a 

17 project— 

18 ‘‘(I) which meets the require19 ments of subparagraphs (A) and (B) 

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

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

22 the total carbon oxide emissions of 

23 which is qualified carbon oxide (as de24 fined in section 45Q(c)) which is disVerDate Sep 11 2014 02:11 Jun 19, 2019 Jkt 034408 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\S1841.IS S1841

pbinns on DSK79D2C42PROD with BILLS
7 

•S 1841 IS

1 posed of or utilized as provided in 

2 paragraph (7). 

3 ‘‘(xiii) CARBON CAPTURE AND SE4 QUESTRATION.— 

5 ‘‘(I) POWER GENERATION FACILI6 TIES.—The generation or storage of 

7 electric power (including associated 

8 income from the sale or marketing of 

9 energy, capacity, resource adequacy, 

10 and ancillary services) produced from 

11 any power generation facility which is, 

12 or from any power generation unit 

13 within, a qualified facility which is de14 scribed in section 45Q(d) and not less 

15 than 50 percent (30 percent in the 

16 case of a facility or unit placed in 

17 service before January 1, 2019) of the 

18 total carbon oxide emissions of which 

19 is qualified carbon oxide which is dis20 posed of or utilized as provided in 

21 paragraph (7). 

22 ‘‘(II) OTHER FACILITIES.—The 

23 sale of any good or service from any 

24 facility (other than a power generation 

25 facility) which is a qualified facility 


pbinns on DSK79D2C42PROD with BILLS
8 

•S 1841 IS

1 described in section 45Q(d) and the 

2 captured qualified carbon oxide (as so 

3 defined) of which is disposed of as 

4 provided in paragraph (7).’’. 

5 (b) RENEWABLE CHEMICAL.— 

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

7 Code is amended by adding at the end the following 

8 new paragraph: 

9 ‘‘(6) QUALIFYING RENEWABLE CHEMICAL.— 

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

11 renewable chemical’ means any renewable chem12 ical (as defined in section 9001 of the Farm Se13 curity and Rural Investment Act of 2002 (7 

14 U.S.C. 8101))— 

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), 


pbinns on DSK79D2C42PROD with BILLS
9 

•S 1841 IS

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, acetone, acrylic 

14 acid, acyl glutamate, adipic acid, algae 

15 oils, algae sugars, 1,4-butanediol 

16 (BDO), iso-butanol, n-butanol, C3-C9 

17 aldehydes, C3-C9 ketones, C10 and 

18 higher hydrocarbons produced from 

19 olefin metathesis, carboxylic acids pro20 duced from olefin metathesis, cellu21 losic sugar, diethyl methylene malo22 nate, dodecanedioic acid (DDDA), 

23 esters produced from olefin metath24 esis, ethyl acetate, ethylene glycol, 

25 farnesene, 2,5-furandicarboxylic acid, 


pbinns on DSK79D2C42PROD with BILLS
10 

•S 1841 IS

1 gamma-butyrolactone, glucaric acid, 

2 hexamethylenediamine (HMD), 3-hy3 droxy propionic acid, isoamylene, iso4 butene, isoprene, isopropanol, itaconic 

5 acid, lactide, levulinic acid, modified 

6 vegetable oils (oligomers or polymers) 

7 as produced from olefin metathesis, 

8 polyhydroxyalkonate (PHA), polylactic 

9 acid (PLA), polyethylene furanoate 

10 (PEF), polyethylene terephthalate 

11 (PET), polyitaconic acid, polyols from 

12 vegetable oils, poly(xylitan levulinate 

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

14 propanediol, rhamnolipids, short and 

15 medium chain carboxylic acids pro16 duced from anaerobic digestion, suc17 cinic acid, terephthalic acid, vegetable 

18 fatty acid derived from ethyl esters 

19 containing vegetable oil, or p-Xylene, 

20 or 

21 ‘‘(II) any chemical not described 

22 in clause (i) which is a chemical listed 

23 by the Secretary for purposes of this 

24 paragraph. 


pbinns on DSK79D2C42PROD with BILLS
11 

•S 1841 IS

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

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

3 content percentage’ means, with respect to any 

4 renewable chemical, the biobased content of 

5 such chemical (expressed as a percentage) de6 termined by testing representative samples 

7 using the American Society for Testing and 

8 Materials (ASTM) D6866.’’. 

9 (2) LIST OF OTHER QUALIFYING RENEWABLE

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

11 of the enactment of this Act, the Secretary of the 

12 Treasury (or the Secretary’s delegate), in consulta13 tion with the Secretary of Agriculture, shall establish 

14 a program to consider applications from taxpayers 

15 for the listing of chemicals under section 

16 7704(d)(6)(A)(vi)(II) of the Internal Revenue Code 

17 of 1986 (as added by paragraph (1)). 

18 (c) DISPOSAL AND UTILIZATION OF CAPTURED CAR19 BON OXIDE.—Section 7704(d) of such Code, as amended 

20 by subsection (b), is amended by adding at the end the 

21 following new paragraph: 

22 ‘‘(7) DISPOSAL AND UTILIZATION OF CAPTURED

23 CARBON OXIDE.—For purposes of clauses (xii)(III) 

24 and (xiii)(I) of paragraph (1)(E), carbon oxide is 


pbinns on DSK79D2C42PROD with BILLS
12 

•S 1841 IS

1 disposed of or utilized as provided in this paragraph 

2 if such carbon oxide is— 

3 ‘‘(A) placed into secure geological storage 

4 (as determined under section 45Q(f)(2)), 

5 ‘‘(B) used as a tertiary injectant (as de6 fined in section 45Q(e)(3)) in a qualified en7 hanced oil or natural gas recovery project (as 

8 defined in section 45Q(e)(2)) and placed into 

9 secure geological storage (as so determined), or 

10 ‘‘(C) utilized in a manner described in sec11 tion 45Q(f)(5).’’. 

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

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

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

Æ 


pbinns on DSK79D2C42PROD with BILLS