I 
108TH CONGRESS 
1ST SESSION H. R. 3531
To amend the Internal Revenue Code of 1986 to provide for a transferable 
credit against the income tax for producing energy from waste coal. 
IN THE HOUSE OF REPRESENTATIVES 
NOVEMBER 19, 2003
Mr. MURPHY (for himself, Mr. MURTHA, and Mr. ENGLISH) 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 transferable credit against the income tax for pro-
ducing energy from waste coal.
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 ‘‘Environmental Res-
toration Act of 2003’’. 
SEC. 2. FINDINGS AND PURPOSE. 
(a) FINDINGS.—Congress finds the following: 
(1) Coal mining has been an important part of 
America’s industrial heritage for over 150 years. As 
coal is removed from underground mines, a large
amount of other materials accompanies the coal to 
the surface. This substance, known as gob, contains 
a mixture of clay, rocks, soil, minerals and other raw 
materials. The gob piles contain millions of cubic 
feet of material known to contribute to acid mine 
drainage. 
(2) The mountains of gob contain large 
amounts of potential energy that can be recycled to 
create new sources of power. The technology to use 
the gob pile materials as an efficient alternative en-
ergy source has been developed over the past 15 
years. However, the incentive to invest in the tech-
nology has not been pursued due to the high capital-
ization and operating costs. 
(3) Developing alternate energy sources reduces 
energy costs, reduces dependencies on foreign oil, 
and improves the competitiveness of American in-
dustry. Increasing energy demands, and over reli-
ance on limited sources of energy, will result in high-
er prices for homeowners and industry. Higher pro-
duction costs hurt American jobs, overburdens in-
dustry, and stifles economic growth. The develop-
ment of alternate energy sources will result in lower 
prices, a cleaner environment, new manufacturing, 
and more jobs.
(b) PURPOSE.—The purpose of this Act is to encour-
age and create incentives for alternate fuel sources to meet 
increasing demand for homeowners and industries. 
SEC. 3. ENERGY PRODUCED FROM WASTE COAL. 
(a) IN GENERAL.—Subpart D of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of 
1986 (relating to business related credits) is amended by 
inserting after section 45F the following new section: 
‘‘SEC. 45G. ENERGY PRODUCED FROM WASTE COAL. 
‘‘(a) GENERAL RULE.—For purposes of section 38, 
the waste coal energy production per ton credit for any 
taxable year is an amount equal to $1.50 per million Btu 
of heat input utilized by the taxpayer to produce energy 
in an eligible facility from qualified waste coal during the 
10-year period beginning on the date the facility was origi-
nally placed in service (or, if later, the date of the enact-
ment of this section). 
‘‘(b) CREDIT REDUCED FOR GRANTS.—The amount 
of the credit determined under subsection (a) with respect 
to any project for any taxable year shall be reduced by 
the amount which is the product of the amount so deter-
mined for such year and a fraction—
‘‘(1) the numerator of which is the sum, for the 
taxable year and all prior taxable years, of—
‘‘(A) grants provided by the United States, 
a State, or a political subdivision of a State for 
use in connection with the project, and 
‘‘(B) the amount of any other credit allow-
able with respect to any property which is part 
of the project, and 
‘‘(2) the denominator of which is the aggregate 
amount of additions to the capital account for the 
project for the taxable year and all prior taxable 
years. The amounts under the preceding sentence 
for any taxable year shall be determined as of the 
close of the taxable year. 
‘‘(c) QUALIFIED WASTE COAL.—
‘‘(1) IN GENERAL.—For purposes of this sec-
tion, the term ‘qualified waste coal’ means coal cer-
tified by the Secretary to be waste (as defined in 
paragraphs (1) through (6) of section 292.202 of 
title 18, Code of Federal Regulations (as in effect on 
the date of the enactment of this section)). 
‘‘(2) CERTIFICATION PROCESS.—For purposes 
of paragraph (1), coal may not be certified as waste 
coal unless application therefor is submitted before 
the end of the 6-month period beginning on the date 
of the enactment of this section to the Secretary.
‘‘(d) ELIGIBLE FACILITY.—For purposes of this sec-
tion—
‘‘(1) IN GENERAL.—The term ‘eligible facility’ 
means a facility—
‘‘(A) whose heat input is not less than 75 
percent from qualified waste coal, and 
‘‘(B) which, as of the date on which the 
Secretary determines by private letter ruling 
that the taxpayer is eligible for the allowance of 
the credit under this section, has under its con-
trol, by ownership or lease, not less than a 15-
year supply of qualified waste coal, and 
‘‘(C) which is placed in service not more 
than 42 months after the month in which the 
taxpayer receives the private letter ruling re-
ferred to in subparagraph (B). 
‘‘(2) PRIVATE LETTER RULING.—For purposes 
of paragraph (1)(B), a private letter ruling shall not 
be taken into account unless the request therefor is 
submitted to the Secretary within 30 days after the 
date on which the taxpayer receives the certification 
required by subsection (b). 
‘‘(e) 
OTHER
DEFINITION
AND
APPLICABLE 
RULES.—For purposes of this section—
any taxable year which is attributable to the credit 
determined under section 45G may be carried back 
to any taxable year ending before January 1, 
2004.’’. 
(e) CLERICAL AMENDMENT.—The table of sections 
for subpart D of part IV of subchapter A of chapter 1 
of such Code is amended by inserting after the item relat-
ing to section 45F the following new item:
‘‘Sec. 45G. Energy produced from waste coal.’’.
(f) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years ending after De-
cember 31, 2003.
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