Title: A bill to amend the Internal Revenue Code of 1986 to modify the definition of municipal solid waste.
Policy area: Taxation

Summary:
This bill amends the Internal Revenue Code, with respect to the tax credit for producing electricity from renewable resources, to modify the definition of "municipal solid waste."
The bill specifies that municipal solid waste does not include solid waste collected as part of a system which commingles commonly recycled paper with other solid waste which is not commonly recycled at any point from the time of collection through any materials recovery. The bill includes exceptions for incidental and residual waste.
In the case of a facility that produces electricity both from municipal solid waste and other solid waste that is not a qualified energy resource: (1) the facility is a qualified facility if it otherwise meets the requirements for qualified facilities, and (2) the credit only applies to the portion of the electricity produced from municipal solid waste.

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[S. 2371 Introduced in Senate (IS)]

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115th CONGRESS
  2d Session
                                S. 2371

To amend the Internal Revenue Code of 1986 to modify the definition of 
                         municipal solid waste.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            February 5, 2018

 Ms. Stabenow (for herself, Mr. Boozman, Mr. Carper, Ms. Baldwin, and 
 Mr. Isakson) introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
To amend the Internal Revenue Code of 1986 to modify the definition of 
                         municipal solid waste.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. MODIFICATION TO DEFINITION OF MUNICIPAL SOLID WASTE.

    (a) In General.--Paragraph (6) of section 45(c) of the Internal 
Revenue Code of 1986 is amended to read as follows:
            ``(6) Municipal solid waste.--
                    ``(A) In general.--The term `municipal solid waste' 
                has the meaning given the term `solid waste' under 
                section 1004(27) of the Solid Waste Disposal Act (42 
                U.S.C. 6903(27)), except that such term does not 
                include--
                            ``(i) paper which is commonly recycled and 
                        which has been segregated from other solid 
                        waste (as so defined), or
                            ``(ii) solid waste (as so defined) which is 
                        collected as part of a system which commingles 
                        commonly recycled paper with other solid waste 
                        which is not commonly recycled at any point 
                        from the time of collection through any 
                        materials recovery.
                    ``(B) Special rule with respect to incidental and 
                residual waste.--Subparagraph (A)(ii) shall not apply 
                to--
                            ``(i) solid waste (as so defined) which 
                        only contains an incidental amount of commonly 
                        recycled paper, and
                            ``(ii) solid waste (as so defined) which is 
                        residual waste generated at a materials 
                        recovery facility that receives and processes 
                        only paper and other recyclable materials 
                        containing no more than an incidental amount of 
                        non-recyclable solid waste.
                    ``(C) No effect on existing processes.--Nothing in 
                subparagraph (A) shall be interpreted to require a 
                State or a political subdivision of a State, directly 
                or indirectly, to change the systems, processes, or 
                equipment it uses to collect, treat, dispose, or 
                otherwise use municipal solid waste, within the meaning 
                of the Solid Waste Disposal Act (42 U.S.C. 6903 et 
                seq.), nor require a change to the regulations that 
                implement subtitle D of such Act (42 U.S.C. 6901 et 
                seq.).''.
    (b) Rules With Respect to Electricity Produced From Solid Waste.--
Subsection (e) of section 45 of the Internal Revenue Code of 1986 is 
amended by adding at the end the following new paragraph:
            ``(12) Source of municipal solid waste feedstock.--In the 
        case of a qualified facility that produces electricity both 
        from municipal solid waste and other solid waste that is not a 
        qualified energy resource--
                    ``(A) such facility shall be considered a qualified 
                facility if it otherwise meets the requirements of 
                subsection (d), and
                    ``(B) subsection (a) shall only apply to that 
                portion of the electricity produced from municipal 
                solid waste.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.
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