I 

111TH CONGRESS 

1ST SESSION H. R. 3525 

To amend the Internal Revenue Code of 1986 to provide for the treatment 

of bonds issued to finance renewable energy resource facilities, conservation and efficiency facilities, and other specified greenhouse gas emission 

technologies. 

IN THE HOUSE OF REPRESENTATIVES 

JULY 31, 2009 

Mr. THOMPSON of California (for himself and Mr. HELLER) 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 provide 

for the treatment of bonds issued to finance renewable 

energy resource facilities, conservation and efficiency facilities, and other specified greenhouse gas emission technologies. 

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. TREATMENT OF BONDS ISSUED TO FINANCE 

2 RENEWABLE ENERGY RESOURCE FACILITIES 

3 AND CONSERVATION AND EFFICIENCY FA4 CILITIES AND OTHER SPECIFIED GREEN5 HOUSE GAS EMISSION TECHNOLOGIES. 

6 (a) IN GENERAL.—Section 142(a) of the Internal 

7 Revenue Code of 1986 is amended by striking ‘‘or’’ at the 

8 end of paragraph (14), by striking the period at the end 

9 of paragraph (15) and inserting a comma, and by insert10 ing after paragraph (15) the following new paragraphs: 

11 ‘‘(16) renewable energy resource facilities, 

12 ‘‘(17) conservation and efficiency facilities and 

13 projects, or 

14 ‘‘(18) zero emission vehicles and related facili15 ties or projects.’’. 

16 (b) RENEWABLE ENERGY RESOURCE FACILITY.— 

17 Section 142 of such Code is further amended by adding 

18 at the end the following new subsection: 

19 ‘‘(n) RENEWABLE ENERGY RESOURCE FACILI20 TIES.—For purposes of subsection (a)(16)— 

21 ‘‘(1) IN GENERAL.—The term ‘renewable en22 ergy resource facility’ means— 

23 ‘‘(A) any facility used to produce electric 

24 or thermal energy (including a distributed gen25 eration facility) from— 

26 ‘‘(i) solar, wind, or geothermal energy, 


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1 ‘‘(ii) marine and hydrokinetic renew2 able energy, 

3 ‘‘(iii) incremental hydropower, 

4 ‘‘(iv) biomass (as defined in section 

5 203(b) of the Energy Policy Act of 2005 

6 (42 U.S.C. 15852(b))), or 

7 ‘‘(v) landfill gas, or 

8 ‘‘(B) any facility or project used for the 

9 manufacture of facilities referred to in subpara10 graph (A). 

11 ‘‘(2) DEFINITIONS.—For purposes of paragraph 

12 (1)— 

13 ‘‘(A) GEOTHERMAL ENERGY.—The term 

14 ‘geothermal energy’ means energy derived from 

15 a geothermal deposit (within the meaning of 

16 section 613(e)(2)) or from geothermal heat 

17 pumps. 

18 ‘‘(B) MARINE AND HYDROKINETIC RENEW19 ABLE ENERGY.—The term ‘marine and 

20 hydrokinetic renewable energy’ has the meaning 

21 given such term in section 45(c)(10). 

22 ‘‘(C) INCREMENTAL HYDROPOWER.—The 

23 term ‘incremental hydropower’ means additional 

24 energy generated as a result of efficiency im25 provements or capacity additions to existing hyVerDate Nov 24 2008 22:50 Aug 04, 2009 Jkt 079200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H3525.IH H3525

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1 dropower facilities made on or after the date of 

2 enactment of this subsection. The term ‘incre3 mental hydropower’ does not include additional 

4 energy generated as a result of operational 

5 changes not directly associated with efficiency 

6 improvements or capacity additions.’’. 

7 (c) CONSERVATION AND EFFICIENCY.—Section 142 

8 of such Code is amended by adding at the end the fol9 lowing new subsection: 

10 ‘‘(o) CONSERVATION AND EFFICIENCY FACILITIES

11 AND PROJECTS.—For purposes of subsection (a)(17), the 

12 term ‘conservation and efficiency facility and project’ 

13 means— 

14 ‘‘(1) any facility used for the conservation or 

15 the efficient use of energy, including energy efficient 

16 retrofitting of existing buildings, or for the efficient 

17 storage, transmission, or distribution of energy, in18 cluding any facility or project designed to implement 

19 smart grid technologies (as described in title XIII of 

20 the Energy Independence and Security Act of 2007, 

21 or individual components of such technologies as 

22 listed in section 1301 of such Act), 

23 ‘‘(2) any facility used for the conservation of or 

24 the efficient use of water, including— 

25 ‘‘(A) any facility or project designed to— 


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1 ‘‘(i) reduce the demand for water, 

2 ‘‘(ii) improve efficiency in use and re3 duce losses and waste of water, and 

4 ‘‘(iii) improve land management prac5 tices to conserve water, or 

6 ‘‘(B) any individual component of a facility 

7 or project referred to in subparagraph (A), or 

8 ‘‘(3) any facility or project used for the manu9 facture of facilities referred to in paragraphs (1) and 

10 (2). 

11 For purposes of paragraph (2)(A), facilities and projects 

12 does not include facilities or projects that store water.’’. 

13 (d) ZERO EMISSION VEHICLES AND RELATED FA14 CILITIES OR PROJECTS.—Section 142 of such Code is 

15 amended by adding at the end the following new sub16 section: 

17 ‘‘(p) ZERO EMISSION VEHICLES AND RELATED FA18 CILITIES OR PROJECTS.— 

19 ‘‘(1) ZERO EMISSION VEHICLES.—The term 

20 ‘zero emission vehicles’ means vehicles that have no 

21 tailpipe emissions, evaporative emissions, or onboard 

22 emission-control systems that can deteriorate over 

23 time. 

24 ‘‘(2) FACILITIES RELATED TO ZERO EMISSION

25 VEHICLES.—A facility or project is related to a zero 


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1 emission vehicle if the facility is any real or personal 

2 property to be used in the design, technology trans3 fer, manufacture, production, assembly, distribution, 

4 or service of zero emission vehicles.’’. 

5 (e) COORDINATION WITH SECTION 45.—Paragraph 

6 (3) of section 45(b) of such Code is amended by adding 

7 at the end the following new sentence: ‘‘Clause (ii) of sub8 paragraph (A) shall not apply with respect to (I) any 

9 qualified facility that is a renewable energy resource facil10 ity described in section 142(a)(16), (II) any qualified facil11 ity that is a conservation and efficiency facility described 

12 in section 142(a)(17), or (III) any qualified facility that 

13 is a zero emission vehicle and related facility or project 

14 described in section 142(a)(18).’’. 

15 (f) COORDINATION WITH SECTION 45K.—Subpara16 graph (A) of section 45K(b)(3) of such Code is amended 

17 by adding at the end the following flush sentence: ‘‘Clause 

18 (i)(II) shall not apply with respect to (aa) any qualified 

19 facility that is a renewable energy resource facility de20 scribed in section 142(a)(16), (bb) any qualified facility 

21 that is a conservation and efficiency facility described sec22 tion 142(a)(17), or (cc) any qualified facility that is a zero 

23 emission vehicle and related facility or project described 

24 in section 142(a)(18).’’. 


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1 (g) COORDINATION WITH SECTION 146(g)(3).—Sec2 tion 146(g)(3) is amended by striking ‘‘or (15)’’ and all 

3 that follows through the end of the paragraph and insert4 ing ‘‘(15), (16), (17), or (18)’’. 

5 (h) EFFECTIVE DATE.—The amendments made by 

6 this section shall apply to obligations issued after the date 

7 of the enactment of this Act. 

Æ 


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