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, conserva-
tion 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 fa-
cilities, and other specified greenhouse gas emission tech-
nologies. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
VerDate Nov 24 2008 
22:50 Aug 04, 2009
Jkt 079200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\H3525.IH
H3525
PWALKER on DSK8KYBLC1PROD with BILLS
SECTION 1. TREATMENT OF BONDS ISSUED TO FINANCE 
RENEWABLE ENERGY RESOURCE FACILITIES 
AND CONSERVATION AND EFFICIENCY FA-
CILITIES AND OTHER SPECIFIED GREEN-
HOUSE GAS EMISSION TECHNOLOGIES. 
(a) IN GENERAL.—Section 142(a) of the Internal 
Revenue Code of 1986 is amended by striking ‘‘or’’ at the 
end of paragraph (14), by striking the period at the end 
of paragraph (15) and inserting a comma, and by insert-
ing after paragraph (15) the following new paragraphs: 
‘‘(16) renewable energy resource facilities, 
‘‘(17) conservation and efficiency facilities and 
projects, or 
‘‘(18) zero emission vehicles and related facili-
ties or projects.’’. 
(b) RENEWABLE ENERGY RESOURCE FACILITY.— 
Section 142 of such Code is further amended by adding 
at the end the following new subsection: 
‘‘(n) RENEWABLE
ENERGY
RESOURCE
FACILI-
TIES.—For purposes of subsection (a)(16)— 
‘‘(1) IN GENERAL.—The term ‘renewable en-
ergy resource facility’ means— 
‘‘(A) any facility used to produce electric 
or thermal energy (including a distributed gen-
eration facility) from— 
‘‘(i) solar, wind, or geothermal energy, 
VerDate Nov 24 2008 
22:50 Aug 04, 2009
Jkt 079200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H3525.IH
H3525
PWALKER on DSK8KYBLC1PROD with BILLS
‘‘(ii) marine and hydrokinetic renew-
able energy, 
‘‘(iii) incremental hydropower, 
‘‘(iv) biomass (as defined in section 
203(b) of the Energy Policy Act of 2005 
(42 U.S.C. 15852(b))), or 
‘‘(v) landfill gas, or 
‘‘(B) any facility or project used for the 
manufacture of facilities referred to in subpara-
graph (A). 
‘‘(2) DEFINITIONS.—For purposes of paragraph 
(1)— 
‘‘(A) GEOTHERMAL
ENERGY.—The term 
‘geothermal energy’ means energy derived from 
a geothermal deposit (within the meaning of 
section 613(e)(2)) or from geothermal heat 
pumps. 
‘‘(B) MARINE AND HYDROKINETIC RENEW-
ABLE
ENERGY.—The 
term 
‘marine 
and 
hydrokinetic renewable energy’ has the meaning 
given such term in section 45(c)(10). 
‘‘(C) INCREMENTAL
HYDROPOWER.—The 
term ‘incremental hydropower’ means additional 
energy generated as a result of efficiency im-
provements or capacity additions to existing hy-
VerDate Nov 24 2008 
22:50 Aug 04, 2009
Jkt 079200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H3525.IH
H3525
PWALKER on DSK8KYBLC1PROD with BILLS
dropower facilities made on or after the date of 
enactment of this subsection. The term ‘incre-
mental hydropower’ does not include additional 
energy generated as a result of operational 
changes not directly associated with efficiency 
improvements or capacity additions.’’. 
(c) CONSERVATION AND EFFICIENCY.—Section 142 
of such Code is amended by adding at the end the fol-
lowing new subsection: 
‘‘(o) CONSERVATION AND EFFICIENCY FACILITIES 
AND PROJECTS.—For purposes of subsection (a)(17), the 
term ‘conservation and efficiency facility and project’ 
means— 
‘‘(1) any facility used for the conservation or 
the efficient use of energy, including energy efficient 
retrofitting of existing buildings, or for the efficient 
storage, transmission, or distribution of energy, in-
cluding any facility or project designed to implement 
smart grid technologies (as described in title XIII of 
the Energy Independence and Security Act of 2007, 
or individual components of such technologies as 
listed in section 1301 of such Act), 
‘‘(2) any facility used for the conservation of or 
the efficient use of water, including— 
‘‘(A) any facility or project designed to— 
VerDate Nov 24 2008 
22:50 Aug 04, 2009
Jkt 079200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H3525.IH
H3525
PWALKER on DSK8KYBLC1PROD with BILLS
‘‘(i) reduce the demand for water, 
‘‘(ii) improve efficiency in use and re-
duce losses and waste of water, and 
‘‘(iii) improve land management prac-
tices to conserve water, or 
‘‘(B) any individual component of a facility 
or project referred to in subparagraph (A), or 
‘‘(3) any facility or project used for the manu-
facture of facilities referred to in paragraphs (1) and 
(2). 
For purposes of paragraph (2)(A), facilities and projects 
does not include facilities or projects that store water.’’. 
(d) ZERO EMISSION VEHICLES AND RELATED FA-
CILITIES OR PROJECTS.—Section 142 of such Code is 
amended by adding at the end the following new sub-
section: 
‘‘(p) ZERO EMISSION VEHICLES AND RELATED FA-
CILITIES OR PROJECTS.— 
‘‘(1) ZERO
EMISSION
VEHICLES.—The term 
‘zero emission vehicles’ means vehicles that have no 
tailpipe emissions, evaporative emissions, or onboard 
emission-control systems that can deteriorate over 
time. 
‘‘(2) FACILITIES RELATED TO ZERO EMISSION 
VEHICLES.—A facility or project is related to a zero 
VerDate Nov 24 2008 
22:50 Aug 04, 2009
Jkt 079200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6201
E:\BILLS\H3525.IH
H3525
PWALKER on DSK8KYBLC1PROD with BILLS
(g) COORDINATION WITH SECTION 146(g)(3).—Sec-
tion 146(g)(3) is amended by striking ‘‘or (15)’’ and all 
that follows through the end of the paragraph and insert-
ing ‘‘(15), (16), (17), or (18)’’. 
(h) EFFECTIVE DATE.—The amendments made by 
this section shall apply to obligations issued after the date 
of the enactment of this Act. 
Æ 
VerDate Nov 24 2008 
22:50 Aug 04, 2009
Jkt 079200
PO 00000
Frm 00007
Fmt 6652
Sfmt 6301
E:\BILLS\H3525.IH
H3525
PWALKER on DSK8KYBLC1PROD with BILLS