means an amount paid for the privilege of deferring
the drilling of an oil or gas well under an oil or gas
lease.’’.
Subtitle B—Independent Oil and
Gas Producers
SEC. 811. 5-YEAR NET OPERATING LOSS CARRYBACK FOR
LOSSES ATTRIBUTABLE TO OPERATING MIN-
ERAL INTERESTS OF INDEPENDENT OIL AND
GAS PRODUCERS.
(a) Paragraph (1) of section 172(b) of the Internal
Revenue Code of 1986 (relating to years to which loss may
be carried) is amended by adding at the end the following
new subparagraph:
‘‘(H) LOSSES ON OPERATING MINERAL IN-
TERESTS OF INDEPENDENT OIL AND GAS PRO-
DUCERS.—In the case of a taxpayer—
‘‘(i) which has an eligible oil and gas
loss (as defined in subsection (j)) for a tax-
able year, and
‘‘(ii) which is not an integrated oil
company (as defined in section 291(b)(4)),
such eligible oil and gas loss shall be a net
operating loss carryback to each of the 5
taxable years preceding the taxable year of
such loss.’’.
(b) ELIGIBLE OIL AND GAS LOSS.—Section 172 of
such Code is amended by redesignating subsection (j) as
subsection (k) and by inserting after subsection (i) the fol-
lowing new subsection:
‘‘(j) ELIGIBLE OIL AND GAS LOSS.—For purposes of
this section—
‘‘(1) IN GENERAL.—The term ‘eligible oil and
gas loss’ means the lesser of—
‘‘(A) the amount which would be the net
operating loss for the taxable year if only in-
come and deductions attributable to operating
mineral interests (as defined in section 614(d))
in oil and gas wells are taken into account, or
‘‘(B) the amount of the net operating loss
for such taxable year.
‘‘(2) 
COORDINATION
WITH
SUBSECTION
(b)(2).—For purposes of applying subsection (b)(2),
an eligible oil and gas loss for any taxable year shall
be treated in a manner similar to the manner in
which a specified liability loss is treated.
‘‘(3) ELECTION.—Any taxpayer entitled to a 5-
year carryback under subsection (b)(1)(H) from any
loss year may elect to have the carryback period
with respect to such loss year determined without re-
gard to subsection (b)(1)(H).’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to net operating losses for taxable
years beginning after December 31, 1998.
SEC. 812. TEMPORARY SUSPENSION OF LIMITATION BASED
ON 65 PERCENT OF TAXABLE INCOME.
(a) IN GENERAL.—Subsection (d) of section 613A of
the Internal Revenue Code of 1986 (relating to limitation
on percentage depletion in case of oil and gas wells) is
amended by adding at the end the following new para-
graph:
‘‘(6) TEMPORARY SUSPENSION OF TAXABLE IN-
COME LIMIT.—Paragraph (1) shall not apply to tax-
able years beginning after December 31, 1998, and
before January 1, 2005, including with respect to
amounts carried under the second sentence of para-
graph (1) to such taxable years.’’.
(b) EFFECTIVE DATE.—The amendment made by
this section shall apply to taxable years beginning after
December 31, 1998.
TITLE IX—TAX MEASURES TO
ENHANCE THE USE OF RE-
NEWABLE ENERGY SOURCES,
IMPROVE 
ENERGY 
EFFI-
CIENCIES, 
PROTECT 
CON-
SUMERS 
AND 
CONVERSION
TO CLEAN BURNING FUELS
SEC. 901. CREDIT FOR ELECTRICITY PRODUCED FROM RE-
NEWABLE RESOURCES.
(a) EXTENSION AND MODIFICATION OF PLACED-IN-
SERVICE RULES.—Paragraph (3) of section 45(c) of the
Internal Revenue Code of 1986 is amended to read as fol-
lows:
‘‘(3) QUALIFIED FACILITY.—
‘‘(A) WIND FACILITIES.—In the case of a
facility using wind to produce electricity, the
term ‘qualified facility’ means any facility
owned by the taxpayer which is originally
placed in service after December 31, 1993, and
before July 1, 2004.
‘‘(B) BIOMASS FACILITIES.—In the case of
a facility using biomass to produce electricity,
the term ‘qualified facility’ means, with respect
to any month, any facility owned, leased, or op-
erated by the taxpayer which is originally
placed in service before July 1, 2004, if, for
such month—
‘‘(i) biomass comprises not less than
75 percent (on a Btu basis) of the average
monthly fuel input of the facility for the
taxable year which includes such month, or
‘‘(ii) in the case of a facility prin-
cipally using coal to produce electricity,
biomass comprises not more than 25 per-
cent (on a Btu basis) of the average
monthly fuel input of the facility for the
taxable year which includes such month.
‘‘(C) SPECIAL RULES.—
‘‘(i) in the case of a qualified facility
described in paragraph (B)(i)—
‘‘(I) the 10-year period referred
to in subsection (a) shall be treated as
beginning no earlier than the date of
the enactment of this paragraph, and
‘‘(II) subsection (b)(3) shall not
apply to any such facility originally
placed in service before January 1,
1997.
‘‘(ii) in the case of a qualified facility
described in subparagraph (B)(ii)—
‘‘(I) the 10-year period referred
to in subsection (a) shall be treated as
beginning no earlier than the date of
the enactment of this paragraph, and
‘‘(II) the amount of the credit
determined under subsection (a) with
respect to any project for any taxable
year shall be adjusted by multiplying
such amount (determined without re-
gard to this clause) by 0.59.’’.
(b) CREDIT NOT TO APPLY TO ELECTRICITY SOLD
TO UTILITIES UNDER CERTAIN CONTRACTS.—Section
45(b) of such Code (relating to limitations and adjust-
ments) is amended by adding at the end the following:
‘‘(4) CREDIT NOT TO APPLY TO ELECTRICITY
SOLD TO UTILITIES UNDER CERTAIN CONTRACTS.—
‘‘(A) IN GENERAL.—The credit determined
under subsection (a) shall not apply to
electricity—
‘‘(i) produced at a qualified facility
placed in service by the taxpayer after
June 30, 1999, and
‘‘(ii) sold to a utility pursuant to a
contract originally entered into before Jan-