prised of one or more batch tanks and/or one or 
more storage tanks, steam and spray pipes, proc-
essing pumps, variable speed drives, a flowmeter and 
related electrical equipment, that processes coal and 
liquefied coal waste sludge.’’, 
(5) in subsection (e)(8)(A) by inserting ‘‘(other 
than refined coal from a qualified coal waste sludge 
recycling process)’’ after ‘‘refined coal’’ the first 
place it appears, 
(6) in subsection (e)(8) by redesignating sub-
paragraphs (B) and (C) as subparagraphs (C) and 
(D), respectively, and by inserting after subpara-
graph (A) the following new subparagraph: 
‘‘(B) AVAILABILITY AND DETERMINATION 
OF CREDIT AMOUNT FOR REFINED COAL FROM 
A QUALIFIED COAL WASTE SLUDGE RECYCLING 
PROCESS.—In the case of a producer of refined 
coal from a qualified coal waste sludge recycling 
process, there shall be allowed a credit for the 
taxable year under this section of $3.00 per 
barrel-of-oil equivalent of refined coal from a 
qualified coal waste sludge recycling process— 
‘‘(i) produced by the taxpayer at a fa-
cility using a refined coal from qualified 
coal waste sludge recycling process during 
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jlentini on PROD1PC65 with BILLS
the period beginning on the date of enact-
ment of this subparagraph and ending on 
the date that is four years from the later 
of the first day of the fifth full month after 
the date of enactment of this subparagraph 
or its placed-in-service date, and 
‘‘(ii) sold by the taxpayer— 
‘‘(I) to an unrelated person, and 
‘‘(II) during such period and tax-
able year. 
For purposes of the preceding sentence, 
barrel-of-oil equivalent is the amount of re-
fined coal from a qualified coal waste 
sludge recycling process that has a Btu 
content of 5.8 million.’’, 
(7) in subsection (e)(8)(C), as redesignated by 
paragraph (6), by striking ‘‘The amount’’ and in-
serting ‘‘Except for a facility producing refined coal 
from a qualified coal waste sludge recycling process, 
the amount’’, 
(8) in subsection (e)(8), as amended by para-
graph (6), by adding at the end the following new 
subparagraph: 
‘‘(E) QUALIFIED COAL WASTE SLUDGE RE-
CYCLING PROCESS.— 
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‘‘(i) DEFINITION.—For purposes of 
this section, a ‘qualified coal waste sludge 
recycling process’ means a process using a 
facility to liquefy coal waste sludge and 
distribute the liquefied coal waste sludge 
on the coal to create a feedstock for the 
manufacture of coke. The term ‘coal waste 
sludge’ means the tar decanter sludge and 
related byproducts of the coking process, 
including such materials that have been 
stored in ground, in tanks and in lagoons, 
that have been treated as hazardous wastes 
under applicable Federal environmental 
rules absent liquefaction and processing 
with coal into a feedstock for the manufac-
ture of coke. The process liquefies coal 
waste sludge and distributes approximately 
one-quarter to one-half gallon of liquefied 
coal waste sludge per each ton of metallur-
gical coal. Liquefied coal waste sludge in 
excess of such amounts would have adverse 
effects on the operations and equipment of 
the coke batteries that use refined coal 
from a qualified coal waste sludge recy-
cling process as a feedstock for coke. Coal 
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jlentini on PROD1PC65 with BILLS
waste sludge has an energy content rang-
ing from 7,000 to 16,000 Btus per pound. 
‘‘(ii) INTERACTION
BETWEEN
SEC-
TION
AND
SECTION
45k; CROSS
REF-
ERENCE.—A taxpayer selling refined coal 
from a qualified coal waste sludge recy-
cling process shall be entitled to a credit 
under this section for all such refined coal 
that meets the requirements of this sec-
tion. The credit under this section shall be 
available notwithstanding the fact that 
such refined coal is purchased for use as a 
feedstock for coke by a taxpayer that has 
previously claimed credits under section 
45K for the production of coke or coke 
gas. For rules applicable to taxpayers pro-
ducing coke or coke gas from refined coal 
from a qualified coal waste sludge recy-
cling process, see section 45K(h).’’, and 
(9) in subsection (e)(9)(B) by striking ‘‘The 
term’’ and inserting ‘‘Except for a facility producing 
refined coal from a qualified coal waste sludge recy-
cling process, the term’’. 
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jlentini on PROD1PC65 with BILLS
(b) NO DOUBLE BENEFIT; CROSS REFERENCE.— 
Section 45K of such Code is amended by adding at the 
end the following new subsection: 
‘‘(h) NO DOUBLE BENEFIT; CROSS REFERENCE.— 
No credit shall be allowed under this section for coke or 
coke gas manufactured from refined coal from a qualified 
coal waste sludge recycling process (as defined by section 
45(e)(8)(E)(i)) for which credits have been claimed under 
section 45; provided that taxpayers may claim the credit 
under this section for coke or coke gas produced from 
feedstocks for which a refined coal credit under section 
45 has not been claimed. For rules governing the inter-
action of section 45 and this section that are applicable 
to taxpayers producing refined coal from a qualified coal 
waste 
sludge 
recycling 
process, 
see 
section 
45(e)(8)(E)(ii).’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this Act shall apply to refined coal produced after the date 
of enactment of this Act. 
Æ 
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