Amends the Internal Revenue Code to expand the definition of "refined coal" for purposes of the tax credit for electricity produced from certain renewable resources to include coal produced from a qualified coal waste sludge recycling process. Defines "qualified coal waste sludge recycling process" as 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.
[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1976 Introduced in House (IH)]
110th CONGRESS
1st Session
H. R. 1976
To amend the Internal Revenue Code of 1986 to modify the refined coal
credit to include qualified coal waste sludge recycling.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
April 20, 2007
Mr. Doyle (for himself, Mr. Tim Murphy of Pennsylvania, Mr. English of
Pennsylvania, Mrs. Capito, Mr. Mollohan, Mr. Dingell, Mr. Rahall, Mr.
Holden, and Mr. Carney) 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 modify the refined coal
credit to include qualified coal waste sludge recycling.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. MODIFICATION OF REFINED COAL CREDIT TO INCLUDE QUALIFIED
COAL WASTE SLUDGE RECYCLING.
(a) In General.--Section 45 of the Internal Revenue Code of 1986
(relating to electricity produced from certain renewable resources,
etc.) is amended--
(1) in subsection (b)(2) by inserting ``the $3.00 amount in
subsection (e)(8)(B),'' after ``the $4.375 amount in subsection
(e)(8)(A),'',
(2) in subsection (b)(2) by striking ``subsection
(e)(8)(B)(i)'' and inserting ``subsection (e)(8)(C)(i)'',
(3) in subsection (c)(7) by adding at the end the
following:
``(C) Refined coal from a qualified coal waste
sludge recycling process.--Refined coal shall also
include, without regard to subparagraphs (A) and (B)
hereof, a solid fuel produced from a qualified coal
waste sludge recycling process.'',
(4) in subsection (d)(8) by striking ``2009.'' and
inserting ``2009, or in the case of a facility that uses a
qualified coal waste sludge recycling process, a facility that
was placed in service not later than one year after the date of
enactment of the credit under this section for refined coal
from a qualified coal waste sludge recycling process. For
purposes of this subsection, a qualified coal waste sludge
recycling facility shall be treated as placed in service when
such facility is in place and functioning to process coal with
coal waste sludge. A `qualified coal waste sludge recycling
facility' includes a plant, comprised of one or more batch
tanks and/or one or more storage tanks, steam and spray pipes,
processing 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 subparagraphs (B)
and (C) as subparagraphs (C) and (D), respectively, and by
inserting after subparagraph (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
facility using a refined coal from qualified
coal waste sludge recycling process during the
period beginning on the date of enactment 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
taxable year.
For purposes of the preceding sentence, barrel-
of-oil equivalent is the amount of refined 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 inserting ``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 paragraph (6), by
adding at the end the following new subparagraph:
``(E) Qualified coal waste sludge recycling
process.--
``(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 manufacture 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 metallurgical 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
recycling process as a feedstock for coke. Coal
waste sludge has an energy content ranging from
7,000 to 16,000 Btus per pound.
``(ii) Interaction between section 45 and
section 45k; cross reference.--A taxpayer
selling refined coal from a qualified coal
waste sludge recycling process shall be
entitled to a credit under this section for all
such refined coal that meets the requirements
of this section. 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 producing coke or
coke gas from refined coal from a qualified
coal waste sludge recycling 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 recycling process, the term''.
(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 interaction 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.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Ways and Means.
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