I 
111TH CONGRESS 
1ST SESSION H. R. 3985 
To amend the Internal Revenue Code of 1986 to provide for a second 
generation biofuel producer credit, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
NOVEMBER 2, 2009 
Mr. VAN HOLLEN 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 a second generation biofuel producer credit, and for 
other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Second Generation 
Biofuel Producer Tax Credit Act of 2009’’. 
SEC. 2. SECOND GENERATION BIOFUEL PRODUCER CRED-
IT. 
(a) CREDIT AMOUNT DETERMINED BASED ON BTU 
CONTENT
OF
FUEL.—Subparagraph (B) of section 
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40(b)(6) of the Internal Revenue Code of 1986 is amended 
to read as follows: 
‘‘(B) APPLICABLE AMOUNT.—For purposes 
of this paragraph— 
‘‘(i) IN GENERAL.—The term ‘applica-
ble amount’ means, with respect to any 
type of second generation biofuel, the dol-
lar amount which bears the same ratio to 
$1.01 as the BTU content of such type of 
fuel bears to the BTU content of ethanol. 
For purposes of the preceding sentence, 
the types of second generation biofuel and 
the BTU content of such types shall be de-
termined in accordance with the table pre-
scribed under clause (ii). 
‘‘(ii) BTU CONTENT DETERMINED BY 
SECRETARY.—The Secretary, after con-
sultation with the Secretary of Energy, 
shall prescribe a table which lists the types 
of second generation biofuel and the BTU 
content of each such type. 
‘‘(iii) COORDINATION WITH ALCOHOL 
CREDITS.—In the case of second genera-
tion biofuel which is alcohol, the applicable 
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amount determined under clause (i) shall 
be reduced by the sum of— 
‘‘(I) the amount of the credit in 
effect for such alcohol under sub-
section (b)(1) (without regard to sub-
section (b)(3)) at the time of the 
qualified second generation biofuel 
production, plus 
‘‘(II) in the case of ethanol, the 
amount of the credit in effect under 
subsection (b)(4) at the time of such 
production.’’. 
(b) EXPANSION OF QUALIFIED FUELS.— 
(1) IN
GENERAL.—Subclause (I) of section 
40(b)(6)(E)(i) of such Code is amended to read as 
follows: 
‘‘(I) is derived solely from quali-
fied feedstocks, and’’. 
(2) QUALIFIED FEEDSTOCK.—Paragraph (6) of 
section 40(b) of such Code is amended by redesig-
nating subparagraphs (F), (G), and (H) as subpara-
graphs (G), (H), and (I), respectively, and by insert-
ing after subparagraph (E) the following new sub-
paragraph: 
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‘‘(F) QUALIFIED
FEEDSTOCK.—For pur-
poses of this paragraph, the term ‘qualified 
feedstock’ means— 
‘‘(i) 
any 
lignocellulosic 
or 
hemicellulosic matter that is available on a 
renewable or recurring basis, and 
‘‘(ii) 
any 
cultivated 
algae, 
cyanobacteria, or lemna.’’. 
(3) CONFORMING AMENDMENTS.— 
(A) Section 40 of such Code is amended— 
(i) by striking ‘‘cellulosic biofuel’’ each 
place it appears in the text thereof and in-
serting ‘‘second generation biofuel’’, 
(ii) by striking ‘‘CELLULOSIC’’ in the 
headings of subsections (b)(6), (b)(6)(E), 
and (d)(3)(D) and inserting ‘‘SECOND 
GENERATION’’, and 
(iii) by striking ‘‘CELLULOSIC’’ in the 
headings 
of 
subsections 
(b)(6)(C), 
(b)(6)(D), (b)(6)(F), (d)(6), and (e)(3) 
and inserting ‘‘SECOND GENERATION’’. 
(B) Clause (iii) of section 40(b)(6)(E) of 
such Code, as redesignated by paragraph (2), is 
amended by striking ‘‘Such term shall not’’ and 
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inserting ‘‘The term ‘second generation biofuel’ 
shall not’’. 
(C) Paragraph (1) of section 4101(a) of 
such Code is amended by striking ‘‘cellulosic 
biofuel’’ and inserting ‘‘second generation 
biofuel’’. 
(c) EXCLUSION OF FUELS PRODUCED FROM CO-
PROCESSING WITH NONQUALIFIED FEEDSTOCKS.—Sub-
paragraph (E) of section 40(b)(6) of such Code is amend-
ed by adding at the end the following new clause: 
‘‘(iii) EXCLUSION
OF
FUELS
PRO-
DUCED FROM COPROCESSING WITH NON-
QUALIFIED FEEDSTOCKS.—The term ‘sec-
ond generation biofuel’ shall not include 
any fuel derived from coprocessing a quali-
fied feedstock with any feedstock which is 
not a qualified feedstock.’’. 
(d) EXCLUSION
OF UNPROCESSED FUELS.—Sub-
paragraph (E) of section 40(b)(6) of such Code, as amend-
ed by subsection (c), is amended by adding at the end the 
following new clause: 
‘‘(iv) EXCLUSION
OF
UNPROCESSED 
FUELS.—The 
term 
‘second 
generation 
biofuel’ shall not include any fuel if— 
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amended by inserting ‘‘(within the meaning of sec-
tion 40(b)(6)(G))’’ after ‘‘liquid fuel’’. 
(f) REGISTRATION OF FUELS.—Subparagraph (I) of 
section 40(b)(6) of such Code, as redesignated by sub-
sections (b) and (e), is amended to read as follows: 
‘‘(I) REGISTRATION
REQUIREMENTS.—No 
credit shall be determined under this paragraph 
with respect to any second generation biofuel 
produced by the taxpayer unless— 
‘‘(i) such taxpayer is registered with 
the Secretary as a producer of second gen-
eration biofuel under section 4101, and 
‘‘(ii) such taxpayer provides the Sec-
retary such information with respect to 
such second generation biofuel as the Sec-
retary may (after consultation with the 
Secretary of Energy and the Administrator 
of the Environmental Protection Agency) 
require, including— 
‘‘(I) the type of such second gen-
eration biofuel, 
‘‘(II) the feedstocks from which 
such second generation biofuel is de-
rived, and 
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‘‘(III) the BTU content of such 
second generation biofuel.’’. 
(g) APPLICATION OF BIOFUEL REFORMS TO BONUS 
DEPRECIATION FOR BIOFUEL PLANT PROPERTY.— 
(1) IN GENERAL.—Subparagraph (A) of section 
168(l)(2) of such Code is amended by striking ‘‘sole-
ly to produce cellulosic biofuel’’ and inserting ‘‘solely 
to produce second generation biofuel (as defined in 
section 40(b)(6)(E)’’. 
(2) CONFORMING
AMENDMENTS.—Subsection 
(l) of section 168 of such Code is amended— 
(A) by striking ‘‘cellulosic biofuel’’ each 
place it appears in the text thereof and insert-
ing ‘‘second generation biofuel’’, 
(B) by striking paragraph (3) and redesig-
nating paragraphs (4) through (8) as para-
graphs (3) through (7), respectively, 
(C) by striking ‘‘CELLULOSIC’’ in the 
heading of such subsection and inserting ‘‘SEC-
OND GENERATION’’, and 
(D) by striking ‘‘CELLULOSIC’’ in the head-
ing of paragraph (2) and inserting ‘‘SECOND 
GENERATION’’. 
(h) EFFECTIVE DATE.— 
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(1) IN GENERAL.—Except as provided in para-
graph (2), the amendments made by this section 
shall apply to fuels sold or used after the date of the 
enactment of this Act. 
(2) APPLICATION TO BONUS DEPRECIATION.— 
The amendments made by subsection (g) shall apply 
to property placed in service after the date of the en-
actment of this Act. 
(3) TEMPORARY
RULE
FOR
DETERMINING 
CREDIT
AMOUNT
BASED
ON
BTU
CONTENT
OF 
FUEL.—With respect to any fuel sold or used after 
the date of the enactment of this Act and before the 
date on which the Secretary prescribes the table de-
scribed in clause (ii) of section 40(b)(6)(B) of the 
Internal Revenue Code of 1986 (as amended by this 
Act), clause (i) of such section shall be applied by 
treating all second generation biofuel as though it 
were ethanol. 
Æ 
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