Biomass Energy Equity Act of 2003

Biomass Energy Equity Act of 2003 - Amends the Internal Revenue Code respecting the credit for electricity produced from certain renewable resources to: (1) extend the credit; (2) expand the scope of qualifying closed-loop facilities; and (3) make qualifying biomass (other than closed-loop biomass) and biomass facilities eligible for the credit.

[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 804 Introduced in House (IH)]







108th CONGRESS
  1st Session
                                H. R. 804

  To amend the Internal Revenue Code of 1986 to extend and modify the 
 credit for electricity produced from biomass, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           February 13, 2003

Mr. Herger (for himself, Mr. Matsui, Mr. McCrery, Mr. Ose, Mr. Kennedy 
of Minnesota, and Mr. Hunter) 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 extend and modify the 
 credit for electricity produced from biomass, and for other purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Biomass Energy Equity Act of 2003''.

SEC. 2. CREDIT FOR ELECTRICITY PRODUCED FROM BIOMASS.

    (a) Extension and Modification of Placed-In-Service Rules.--
Paragraph (3) of section 45(c) of the Internal Revenue Code of 1986 is 
amended--
            (1) by striking subparagraph (B) and inserting the 
        following new subparagraph:
                    ``(B) Closed-loop biomass facility.--In the case of 
                a facility using closed-loop biomass to produce 
                electricity, the term `qualified facility' means any 
                facility--
                            ``(i) owned by the taxpayer which is 
                        originally placed in service after December 31, 
                        1992, and before January 1, 2008, or
                            ``(ii) owned by the taxpayer which is 
                        originally placed in service on or before 
                        December 31, 1992, and modified to use closed-
                        loop biomass to co-fire with coal before 
                        January 1, 2008.'',
            (2) by striking ``2004'' in subparagraph (C) and inserting 
        ``2008'', and
            (3) by adding at the end the following new subparagraphs:
                    ``(D) Biomass facilities.--In the case of a 
                facility using biomass (other than closed-loop biomass) 
                to produce electricity, the term `qualified facility' 
                means any facility owned by the taxpayer which is 
                originally placed in service before January 1, 2008.
                    ``(E) Special rules.--In the case of a qualified 
                facility described in subparagraph (B)(ii) or (D)--
                            ``(i) the 10-year period referred to in 
                        subsection (a) shall be treated as beginning no 
                        earlier than the date of the enactment of this 
                        paragraph,
                            ``(ii) subsection (b)(3) shall not apply to 
                        any such facility originally placed in service 
                        before January 1, 1997, and
                            ``(iii) if such a facility is leased and 
                        the operator thereof is the lessee, such lessee 
                        (and not the owner) shall be treated for 
                        purposes of this section as owning such 
                        facility.''
    (b) Biomass Facilities.--
            (1) In general.--Section 45(c)(1) of the Internal Revenue 
        Code of 1986 (defining qualified energy resources) is amended--
                    (A) by striking ``and'' at the end of subparagraph 
                (B),
                    (B) by striking the period at the end of 
                subparagraph (C) and inserting ``, and'', and
                    (C) by adding at the end the following new 
                subparagraph:
                    ``(D) biomass (other than closed-loop biomass).''.
            (2) Biomass defined.--Section 45(c) of such Code (relating 
        to definitions) is amended by adding at the end the following 
        new paragraph:
            ``(5) Biomass.--The term `biomass' means any solid, 
        nonhazardous, cellulosic waste material which is segregated 
        from other waste materials and which is derived from--
                    ``(A) any of the following forest-related 
                resources: mill residues, precommercial thinnings, 
                slash, and brush, but not including old-growth timber 
                (other than old-growth timber which has been permitted 
                or contracted for removal by any appropriate Federal 
                authority through the National Environmental Policy Act 
                or by any appropriate State authority),
                    ``(B) solid wood waste materials, including waste 
                pallets, crates, dunnage, manufacturing and 
                construction wood wastes (other than pressure-treated, 
                chemically-treated, or painted wood wastes), and 
                landscape or right-of-way tree trimmings, but not 
                including municipal solid waste (garbage), gas derived 
                from the biodegradation of solid waste, or paper that 
                is commonly recycled, or
                    ``(C) agriculture sources, including orchard tree 
                crops, vineyard, grain, legumes, sugar, and other crop 
                by-products or residues.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to electricity sold after the date of the enactment of this Act.
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