H. R. 4520—121
‘‘(II) At least 20 acres.
‘‘(v) USE OF TAX BENEFIT.—The project proposal
includes a description of the net benefit of the tax-
exempt financing provided under this subsection which
will be allocated for financing of one or more of the
following:
‘‘(I) The purchase, construction, integration,
or other use of energy efficiency, renewable energy,
and sustainable design features of the project.
‘‘(II) Compliance with certification standards
cited under clause (i).
‘‘(III) The purchase, remediation, and founda-
tion 
construction 
and 
preparation 
of 
the
brownfields site.
‘‘(vi) PROHIBITED FACILITIES.—An issue shall not
be treated as an issue described in subsection (a)(14)
if any proceeds of such issue are used to provide any
facility the principal business of which is the sale
of food or alcoholic beverages for consumption on the
premises.
‘‘(vii) EMPLOYMENT.—The project is projected to
provide permanent employment of at least 1,500 full
time equivalents (150 full time equivalents in rural
States) when completed and construction employment
of at least 1,000 full time equivalents (100 full time
equivalents in rural States).
The application shall include an independent analysis
which describes the project’s economic impact, including
the amount of projected employment.
‘‘(B) 
PROJECT
DESCRIPTION.—Each 
application
described in subparagraph (A) shall contain for each project
a description of—
‘‘(i) the amount of electric consumption reduced
as compared to conventional construction,
‘‘(ii) the amount of sulfur dioxide daily emissions
reduced compared to coal generation,
‘‘(iii) the amount of the gross installed capacity
of the project’s solar photovoltaic capacity measured
in megawatts, and
‘‘(iv) the amount, in megawatts, of the project’s
fuel cell energy generation.
‘‘(5) CERTIFICATION OF USE OF TAX BENEFIT.—No later than
30 days after the completion of the project, each project must
certify to the Secretary that the net benefit of the tax-exempt
financing was used for the purposes described in paragraph
(4).
‘‘(6) DEFINITIONS.—For purposes of this subsection—
‘‘(A) RURAL STATE.—The term ‘rural State’ means any
State which has—
‘‘(i) a population of less than 4,500,000 according
to the 2000 census,
‘‘(ii) a population density of less than 150 people
per square mile according to the 2000 census, and
‘‘(iii) increased in population by less than half the
rate of the national increase between the 1990 and
2000 censuses.
H. R. 4520—122
‘‘(B) LOCAL GOVERNMENT.—The term ‘local government’
has the meaning given such term by section 1393(a)(5).
‘‘(C) NET
BENEFIT
OF
TAX-EXEMPT
FINANCING.—The
term ‘net benefit of tax-exempt financing’ means the
present value of the interest savings (determined by a
calculation established by the Secretary) which result from
the tax-exempt status of the bonds.
‘‘(7) AGGREGATE FACE AMOUNT OF TAX-EXEMPT FINANCING.—
‘‘(A) IN GENERAL.—An issue shall not be treated as
an issue described in subsection (a)(14) if the aggregate
face amount of bonds issued by the State or local govern-
ment pursuant thereto for a project (when added to the
aggregate face amount of bonds previously so issued for
such project) exceeds an amount designated by the Sec-
retary as part of the designation.
‘‘(B) LIMITATION ON AMOUNT OF BONDS.—The Secretary
may not allocate authority to issue qualified green building
and sustainable design project bonds in an aggregate face
amount exceeding $2,000,000,000.
‘‘(8) TERMINATION.—Subsection (a)(14) shall not apply with
respect to any bond issued after September 30, 2009.
‘‘(9) TREATMENT
OF
CURRENT
REFUNDING
BONDS.—Para-
graphs (7)(B) and (8) shall not apply to any bond (or series
of bonds) issued to refund a bond issued under subsection
(a)(14) before October 1, 2009, if—
‘‘(A) the average maturity date of the issue of which
the refunding bond is a part is not later than the average
maturity date of the bonds to be refunded by such issue,
‘‘(B) the amount of the refunding bond does not exceed
the outstanding amount of the refunded bond, and
‘‘(C) the net proceeds of the refunding bond are used
to redeem the refunded bond not later than 90 days after
the date of the issuance of the refunding bond.
For purposes of subparagraph (A), average maturity shall be
determined in accordance with section 147(b)(2)(A).’’.
(c) EXEMPTION FROM GENERAL STATE VOLUME CAPS.—Para-
graph (3) of section 146(g) (relating to exception for certain bonds)
is amended—
(1) by striking ‘‘or (13)’’ and inserting ‘‘(13), or (14)’’, and
(2) by striking ‘‘and qualified public educational facilities’’
and inserting ‘‘qualified public educational facilities, and quali-
fied green building and sustainable design projects’’.
(d) ACCOUNTABILITY.—Each issuer shall maintain, on behalf
of each project, an interest bearing reserve account equal to 1
percent of the net proceeds of any bond issued under this section
for such project. Not later than 5 years after the date of issuance,
the Secretary of the Treasury, after consultation with the Adminis-
trator of the Environmental Protection Agency, shall determine
whether the project financed with such bonds has substantially
complied with the terms and conditions described in section 142(l)(4)
of the Internal Revenue Code of 1986 (as added by this section).
If the Secretary, after such consultation, certifies that the project
has substantially complied with such terms and conditions and
meets the commitments set forth in the application for such project
described in section 142(l)(4) of such Code, amounts in the reserve
account, including all interest, shall be released to the project.
If the Secretary determines that the project has not substantially
H. R. 4520—123
complied with such terms and conditions, amounts in the reserve
account, including all interest, shall be paid to the United States
Treasury.
(e) EFFECTIVE DATE.—The amendments made by this section
shall apply to bonds issued after December 31, 2004.
SEC. 702. EXCLUSION OF GAIN OR LOSS ON SALE OR EXCHANGE OF
CERTAIN BROWNFIELD SITES FROM UNRELATED BUSI-
NESS TAXABLE INCOME.
(a) IN GENERAL.—Subsection (b) of section 512 (relating to
unrelated business taxable income) is amended by adding at the
end the following new paragraph:
‘‘(18) TREATMENT OF GAIN OR LOSS ON SALE OR EXCHANGE
OF CERTAIN BROWNFIELD SITES.—
‘‘(A) IN GENERAL.—Notwithstanding paragraph (5)(B),
there shall be excluded any gain or loss from the qualified
sale, exchange, or other disposition of any qualifying
brownfield property by an eligible taxpayer.
‘‘(B) 
ELIGIBLE
TAXPAYER.—For 
purposes 
of 
this
paragraph—
‘‘(i) IN
GENERAL.—The term ‘eligible taxpayer’
means, with respect to a property, any organization
exempt from tax under section 501(a) which—
‘‘(I) acquires from an unrelated person a quali-
fying brownfield property, and
‘‘(II) pays or incurs eligible remediation
expenditures with respect to such property in an
amount which exceeds the greater of $550,000 or
12 percent of the fair market value of the property
at the time such property was acquired by the
eligible taxpayer, determined as if there was not
a presence of a hazardous substance, pollutant,
or contaminant on the property which is compli-
cating the expansion, redevelopment, or reuse of
the property.
‘‘(ii) EXCEPTION.—Such term shall not include any
organization which is—
‘‘(I) potentially liable under section 107 of the
Comprehensive Environmental Response, Com-
pensation, and Liability Act of 1980 with respect
to the qualifying brownfield property,
‘‘(II) affiliated with any other person which
is so potentially liable through any direct or
indirect familial relationship or any contractual,
corporate, or financial relationship (other than a
contractual, corporate, or financial relationship
which is created by the instruments by which title
to any qualifying brownfield property is conveyed
or financed or by a contract of sale of goods or
services), or
‘‘(III) the result of a reorganization of a busi-
ness entity which was so potentially liable.
‘‘(C) QUALIFYING BROWNFIELD PROPERTY.—For purposes
of this paragraph—
‘‘(i) IN GENERAL.—The term ‘qualifying brownfield
property’ means any real property which is certified,
before the taxpayer incurs any eligible remediation
H. R. 4520—124
expenditures (other than to obtain a Phase I environ-
mental site assessment), by an appropriate State
agency (within the meaning of section 198(c)(4)) in
the State in which such property is located as a
brownfield site within the meaning of section 101(39)
of the Comprehensive Environmental Response, Com-
pensation, and Liability Act of 1980 (as in effect on
the date of the enactment of this paragraph).
‘‘(ii) REQUEST FOR CERTIFICATION.—Any request by
an eligible taxpayer for a certification described in
clause (i) shall include a sworn statement by the
eligible taxpayer and supporting documentation of the
presence of a hazardous substance, pollutant, or
contaminant on the property which is complicating
the expansion, redevelopment, or reuse of the property
given the property’s reasonably anticipated future land
uses or capacity for uses of the property (including
a Phase I environmental site assessment and, if
applicable, evidence of the property’s presence on a
local, State, or Federal list of brownfields or contami-
nated property) and other environmental assessments
prepared or obtained by the taxpayer.
‘‘(D) QUALIFIED SALE, EXCHANGE, OR OTHER DISPOSI-
TION.—For purposes of this paragraph—
‘‘(i) IN GENERAL.—A sale, exchange, or other dis-
position of property shall be considered as qualified
if—
‘‘(I) such property is transferred by the eligible
taxpayer to an unrelated person, and
‘‘(II) within 1 year of such transfer the eligible
taxpayer has received a certification from the
Environmental Protection Agency or an appro-
priate State agency (within the meaning of section
198(c)(4)) in the State in which such property is
located that, as a result of the eligible taxpayer’s
remediation actions, such property would not be
treated as a qualifying brownfield property in the
hands of the transferee.
For purposes of subclause (II), before issuing such cer-
tification, the Environmental Protection Agency or
appropriate State agency shall respond to comments
received pursuant to clause (ii)(V) in the same form
and manner as required under section 117(b) of the
Comprehensive Environmental Response, Compensa-
tion, and Liability Act of 1980 (as in effect on the
date of the enactment of this paragraph).
‘‘(ii) REQUEST FOR CERTIFICATION.—Any request by
an eligible taxpayer for a certification described in
clause (i) shall be made not later than the date of
the transfer and shall include a sworn statement by
the eligible taxpayer certifying the following:
‘‘(I) Remedial actions which comply with all
applicable or relevant and appropriate require-
ments (consistent with section 121(d) of the Com-
prehensive Environmental Response, Compensa-
tion, and Liability Act of 1980) have been substan-
tially completed, such that there are no hazardous