I 
115TH CONGRESS 
1ST SESSION H. R. 4118 
To amend the Internal Revenue Code of 1986 to extend the publicly traded 
partnership ownership structure to energy power generation projects and 
transportation fuels, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
OCTOBER 25, 2017 
Mr. POE of Texas (for himself, Mr. AMODEI, Mr. MCNERNEY, Mr. WELCH, 
Mr. BLUMENAUER, Mr. THOMPSON of California, and Mr. GOSAR) intro-
duced the following bill; which was referred to the Committee on Ways 
and Means 
A BILL 
To amend the Internal Revenue Code of 1986 to extend 
the publicly traded partnership ownership structure to 
energy power generation projects and transportation 
fuels, 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 ‘‘Master Limited Part-
nerships Parity Act’’. 
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SEC. 2. EXTENSION OF PUBLICLY TRADED PARTNERSHIP 
OWNERSHIP STRUCTURE TO ENERGY POWER 
GENERATION PROJECTS, TRANSPORTATION 
FUELS, AND RELATED ENERGY ACTIVITIES. 
(a) IN GENERAL.—Subparagraph (E) of section 
7704(d)(1) of the Internal Revenue Code of 1986 is 
amended— 
(1) by striking ‘‘income and gains derived from 
the exploration’’ and inserting ‘‘income and gains 
derived from the following: 
‘‘(i) 
MINERALS, 
NATURAL
RE-
SOURCES, ETC.—The exploration’’; 
(2) 
by 
inserting 
‘‘or’’ 
before 
‘‘industrial 
source’’; 
(3) by inserting a period after ‘‘carbon diox-
ide’’; and 
(4) by striking ‘‘, or the transportation or stor-
age’’ and all that follows and inserting the following: 
‘‘(ii) RENEWABLE ENERGY.—The gen-
eration of electric power (including the 
leasing of tangible personal property used 
for such generation) exclusively utilizing 
any resource described in section 45(c)(1) 
or energy property described in section 48 
(determined without regard to any termi-
nation date), or in the case of a facility de-
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scribed in paragraph (3) or (7) of section 
45(d) (determined without regard to any 
placed in service date or date by which 
construction of the facility is required to 
begin), the accepting or processing of such 
resource. 
‘‘(iii) ENERGY STORAGE PROPERTY.— 
The sale of electric power, capacity, re-
source adequacy, demand response capa-
bilities, or ancillary services that is pro-
duced or made available from any equip-
ment or facility (operating as a single unit 
or as an aggregation of units) the principal 
function of which is to— 
‘‘(I) use mechanical, chemical, 
electrochemical, hydroelectric, or ther-
mal processes to store energy that was 
generated at one time for conversion 
to electricity at a later time, or 
‘‘(II) store thermal energy for di-
rect use for heating or cooling at a 
later time in a manner that avoids the 
need to use electricity at that later 
time. 
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‘‘(iv) COMBINED HEAT AND POWER.— 
The generation, storage, or distribution of 
thermal energy exclusively utilizing prop-
erty described in section 48(c)(3) (deter-
mined without regard to subparagraphs 
(B) and (D) thereof and without regard to 
any placed in service date). 
‘‘(v) 
RENEWABLE
THERMAL
EN-
ERGY.—The generation, storage, or dis-
tribution of thermal energy exclusively 
using any resource described in section 
45(c)(1) or energy property described in 
clause (i) or (iii) of section 48(a)(3)(A). 
‘‘(vi) WASTE HEAT TO POWER.—The 
use of recoverable waste energy, as defined 
in section 371(5) of the Energy Policy and 
Conservation Act (42 U.S.C. 6341(5)) (as 
in effect on the date of the enactment of 
the Master Limited Partnerships Parity 
Act). 
‘‘(vii) 
RENEWABLE
FUEL
INFRA-
STRUCTURE.—The storage or transpor-
tation of any fuel described in subsection 
(b), (c), (d), or (e) of section 6426. 
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‘‘(viii) RENEWABLE FUELS.—The pro-
duction, storage, or transportation of any 
renewable 
fuel 
described 
in 
section 
211(o)(1)(J) of the Clean Air Act (42 
U.S.C. 7545(o)(1)(J)) (as in effect on the 
date of the enactment of the Master Lim-
ited Partnerships Parity Act) or section 
40A(d)(1). 
‘‘(ix) FUEL
DERIVED
FROM
CAP-
TURED
CARBON
DIOXIDE.—The produc-
tion, storage, or transportation of any fuel 
which— 
‘‘(I) uses carbon dioxide captured 
from an anthropogenic source or the 
atmosphere as its primary feedstock, 
and 
‘‘(II) is determined by the Sec-
retary, in consultation with the Sec-
retary of Energy and the Adminis-
trator of the Environmental Protec-
tion Agency, to achieve a reduction of 
not less than a 60 percent in lifecycle 
greenhouse gas emissions (as defined 
in section 211(o)(1)(H) of the Clean 
Air Act) compared to baseline lifecycle 
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greenhouse gas emissions (as defined 
in section 211(o)(1)(C) of such Act). 
This clause shall not apply to any fuel 
which uses as its primary feedstock carbon 
dioxide which is deliberately released from 
naturally-occurring subsurface springs. 
‘‘(x) RENEWABLE
CHEMICALS.—The 
production, storage, or transportation of 
any qualifying renewable chemical (as de-
fined in paragraph (6)). 
‘‘(xi) 
ENERGY
EFFICIENT
BUILD-
INGS.—The audit and installation through 
contract or other agreement of any energy 
efficient building property described in sec-
tion 179D(c)(1). 
‘‘(xii) GASIFICATION
WITH
SEQUES-
TRATION.—The production of any product 
or the generation of electric power from a 
project— 
‘‘(I) which meets the require-
ments of subparagraphs (A) and (B) 
of section 48B(c)(1), and 
‘‘(II) not less than 75 percent of 
the total carbon dioxide emissions of 
which is qualified carbon dioxide (as 
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defined in section 45Q(b)) which is 
disposed of or utilized as provided in 
paragraph (7). 
‘‘(xiii) CARBON
CAPTURE
AND
SE-
QUESTRATION.— 
‘‘(I) POWER GENERATION FACILI-
TIES.—The generation or storage of 
electric power (including associated 
income from the sale or marketing of 
energy, capacity, resource adequacy, 
and ancillary services) produced from 
any power generation facility which is, 
or from any power generation unit 
within, a qualified facility which is de-
scribed in section 45Q(c) and not less 
than 50 percent (30 percent in the 
case of a facility or unit placed in 
service before January 1, 2017) of the 
total carbon dioxide emissions of 
which is qualified carbon dioxide 
which is disposed of or utilized as pro-
vided in paragraph (7). 
‘‘(II) OTHER
FACILITIES.—The 
sale of any good or service from any 
facility (other than a power generation 
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facility) which is a qualified facility 
described in section 45Q(c) and the 
captured qualified carbon dioxide (as 
so defined) of which is disposed of as 
provided in paragraph (7).’’. 
(b) RENEWABLE CHEMICAL.— 
(1) IN
GENERAL.—Section 7704(d) of such 
Code is amended by adding at the end the following 
new paragraph: 
‘‘(6) QUALIFYING RENEWABLE CHEMICAL.— 
‘‘(A) IN GENERAL.—The term ‘qualifying 
renewable chemical’ means any renewable chem-
ical (as defined in section 9001 of the Agri-
culture Act of 2014)— 
‘‘(i) which is produced by the taxpayer 
in the United States or in a territory or 
possession of the United States, 
‘‘(ii) which is the product of, or reli-
ant upon, biological conversion, thermal 
conversion, or a combination of biological 
and thermal conversion, of renewable bio-
mass (as defined in section 9001(13) of 
the Farm Security and Rural Investment 
Act of 2002), 
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‘‘(iii) the biobased content of which is 
95 percent or higher, 
‘‘(iv) which is sold or used by the tax-
payer— 
‘‘(I) for the production of chem-
ical products, polymers, plastics, or 
formulated products, or 
‘‘(II) as chemicals, polymers, 
plastics, or formulated products, 
‘‘(v) which is not sold or used for the 
production of any food, feed, or fuel, and 
‘‘(vi) which is— 
‘‘(I) acetic acid, acrylic acid, acyl 
glutamate, adipic acid, algae oils, 
algae sugars, 1,4-butanediol (BDO), 
iso-butanol, n-butanol, C10 and high-
er hydrocarbons produced from olefin 
metathesis, carboxylic acids produced 
from 
olefin 
metathesis, 
cellulosic 
sugar, diethyl methylene malonate, 
dodecanedioic acid (DDDA), esters 
produced from olefin metathesis, ethyl 
acetate, ethylene glycol, farnesene, 
2,5-furandicarboxylic acid, gamma-bu-
tyrolactone, 
glucaric 
acid, 
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hexamethylenediamine (HMD), 3-hy-
droxy propionic acid, iso-butene, iso-
prene, itaconic acid, lactide, levulinic 
acid, 
polyhydroxyalkonate 
(PHA), 
polylactic acid (PLA), polyethylene 
furanoate 
(PEF), 
polyethylene 
terephthalate 
(PET), 
polyitaconic 
acid, polyols from vegetable oils, 
poly(xylitan levulinate ketal), 1,3- 
propanediol, 
1,2-propanediol, 
rhamnolipids, short and medium chain 
carboxylic acids produced from anaer-
obic digestion, succinic acid, tereph-
thalic acid, vegetable fatty acid de-
rived from ethyl esters containing veg-
etable oil, or p-Xylene, or 
‘‘(II) any chemical not described 
in clause (i) which is a chemical listed 
by the Secretary for purposes of this 
paragraph. 
‘‘(B) BIOBASED CONTENT.—For purposes 
of subparagraph (A)(iii), the term ‘biobased 
content percentage’ means, with respect to any 
renewable chemical, the biobased content of 
such chemical (expressed as a percentage) de-
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termined by testing representative samples 
using the American Society for Testing and 
Materials (ASTM) D6866.’’. 
(2) LIST OF OTHER QUALIFYING RENEWABLE 
CHEMICALS.—Not later than 180 days after the date 
of the enactment of this Act, the Secretary of the 
Treasury (or the Secretary’s delegate), in consulta-
tion with the Secretary of Agriculture, shall establish 
a program to consider applications from taxpayers 
for 
the 
listing 
of 
chemicals 
under 
section 
7874(d)(6)(A)(vi)(II) (as added by paragraph (1)). 
(c) DISPOSAL AND UTILIZATION OF CAPTURED CAR-
BON DIOXIDE.—Section 7704(d) of such Code, as amend-
ed by subsection (b), is amended by adding at the end 
the following new paragraph: 
‘‘(7) DISPOSAL AND UTILIZATION OF CAPTURED 
CARBON
DIOXIDE.—For 
purposes 
of 
clauses 
(xii)(III) and (xiii)(I) of paragraph (1)(E), carbon 
dioxide is disposed of or utilized as provided in this 
paragraph if such carbon dioxide is— 
‘‘(A) placed into secure geological storage 
(as determined under section 45Q(d)(2)), 
‘‘(B) used as a tertiary injectant (as de-
fined in section 45Q(d)(3)) in a qualified en-
hanced oil or natural gas recovery project (as 
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defined in section 45Q(d)(4)) and placed into 
secure geological storage (as so determined), 
‘‘(C) fixated through photosynthesis or 
chemosynthesis (such as through the growing of 
algae or bacteria), 
‘‘(D) chemically converted to a material or 
chemical compound in which it is securely 
stored, or 
‘‘(E) used for any other purpose which the 
Secretary determines has the potential to 
strengthen or significantly develop a competitive 
market for carbon dioxide captured from man- 
made sources.’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall take effect on the date of the enactment 
of this Act, in taxable years ending after such date. 
Æ 
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