Bridge to a Clean Energy Future Act of 2014

Bridge to a Clean Energy Future Act of 2014 - Amends the Internal Revenue Code to extend through 2015 the following energy-related tax provisions:

• the tax credits for residential energy efficiency improvements, alternative fuel vehicle refueling property expenditures, two-wheeled plug-in electric vehicles, second generation biofuel production, biodiesel and renewable diesel fuel mixtures, producing electricity using Indian coal facilities, the construction of energy-efficient new homes, and new qualified fuel cell motor vehicles;
• the enhanced depreciation allowance for second generation biofuel plant property;
• the tax deduction for energy efficient commercial buildings;
• the excise tax credit for alternative fuels and fuels involving liquefied hydrogen; and
• tax deferral rules for sales or dispositions of qualified electric utilities.

Extends through 2016, the tax credit for producing electricity using wind, biomass, geothermal, landfill gas, trash, hydropower, and marine and hydrokinetic renewable energy facilities.

Directs the Secretary of the Treasury to establish a program to consider and award certifications for qualified investments eligible for the advanced energy project tax credit. Limits the amount of credits that may be allocated under such program to not more than $5 billion (the 2013 allocation amount). Authorizes the Secretary to make direct payments to a taxpayer in lieu of a tax credit.

Extends the energy tax credit to solar energy, fuel cell, microturbine, combined heath and power system, small wind energy, and thermal energy properties the construction of which begins before January 1, 2017.

[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5559 Introduced in House (IH)]

113th CONGRESS
  2d Session
                                H. R. 5559

 To amend the Internal Revenue Code of 1986 to extend certain expiring 
         provisions relating to energy, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           September 18, 2014

Mr. Blumenauer (for himself, Mr. Levin, Mr. Rangel, Mr. McDermott, Mr. 
Lewis, Mr. Neal, Mr. Thompson of California, Mr. Larson of Connecticut, 
 Mr. Kind, Mr. Pascrell, Ms. Schwartz, Mr. Danny K. Davis of Illinois, 
 Ms. Linda T. Sanchez of California, Mr. Moran, Ms. Lee of California, 
   Mr. Ryan of Ohio, Mr. Langevin, and Mr. Loebsack) 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 certain expiring 
         provisions relating to energy, 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, ETC.

    (a) Short Title.--This Act may be cited as the ``Bridge to a Clean 
Energy Future Act of 2014''.
    (b) Amendment of 1986 Code.--Except as otherwise expressly 
provided, whenever in this Act an amendment or repeal is expressed in 
terms of an amendment to, or repeal of, a section or other provision, 
the reference shall be considered to be made to a section or other 
provision of the Internal Revenue Code of 1986.
    (c) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title, etc.
Sec. 2. Extension and modification of credit for nonbusiness energy 
                            property.
Sec. 3. Extension of credit for alternative fuel vehicle refueling 
                            property.
Sec. 4. Extension of credit for 2-wheeled plug-in electric vehicles.
Sec. 5. Extension of second generation biofuel producer credit.
Sec. 6. Extension of incentives for biodiesel and renewable diesel.
Sec. 7. Extension and modification of production credit for Indian coal 
                            facilities placed in service before 2009.
Sec. 8. Extension of credits with respect to facilities producing 
                            energy from certain renewable resources.
Sec. 9. Extension of credit for energy-efficient new homes.
Sec. 10. Extension of special allowance for second generation biofuel 
                            plant property.
Sec. 11. Extension and modification of energy efficient commercial 
                            buildings deduction.
Sec. 12. Extension of excise tax credits relating to certain fuels.
Sec. 13. Extension of credit for new qualified fuel cell motor 
                            vehicles.
Sec. 14. Extension of special rule for sales or dispositions to 
                            implement FERC or State electric 
                            restructuring policy for qualified electric 
                            utilities.
Sec. 15. Extension of the advanced energy project credit.
Sec. 16. Extension of energy credit for certain property under 
                            construction.

SEC. 2. EXTENSION AND MODIFICATION OF CREDIT FOR NONBUSINESS ENERGY 
              PROPERTY.

    (a) In General.--Paragraph (2) of section 25C(g) is amended by 
striking ``December 31, 2013'' and inserting ``December 31, 2015''.
    (b) Updated Energy Star Requirements for Windows, Doors, Skylights, 
and Roofing.--
            (1) In general.--Paragraph (1) of section 25C(c) is amended 
        by striking ``which meets'' and all that follows through 
        ``requirements)''.
            (2) Energy efficient building envelope component.--
        Subsection (c) of section 25C is amended by redesignating 
        paragraphs (2) and (3) as paragraphs (3) and (4), respectively, 
        and by inserting after paragraph (1) the following new 
        paragraph:
            ``(2) Energy efficient building envelope component.--The 
        term `energy efficient building envelope component' means a 
        building envelope component which meets--
                    ``(A) applicable Energy Star program requirements, 
                in the case of a roof or roof products,
                    ``(B) version 6.0 Energy Star program requirements, 
                in the case of an exterior window, a skylight, or an 
                exterior door, and
                    ``(C) the prescriptive criteria for such component 
                established by the 2009 International Energy 
                Conservation Code, as such Code (including supplements) 
                is in effect on the date of the enactment of the 
                American Recovery and Reinvestment Tax Act of 2009, in 
                the case of any other component.''.
            (3) Conforming amendment.--Subparagraph (D) of section 
        25C(c)(3), as so redesignated, is amended to read as follows:
                    ``(D) any roof or roof products which are installed 
                on a dwelling unit and are specifically and primarily 
                designed to reduce the heat gain of such dwelling 
                unit.''.
    (c) Separate Standards for Tankless and Storage Water Heaters.--
            (1) In general.--Subparagraph (D) of section 25C(d)(3) is 
        amended by striking ``which has either'' and all that follows 
        and inserting ``which has either--
                            ``(i) in the case of a storage water 
                        heater, an energy factor of at least 0.80 or a 
                        thermal efficiency of at least 90 percent, and
                            ``(ii) in the case of any other water 
                        heater, an energy factor of at least 0.90 or a 
                        thermal efficiency of at least 90 percent, 
                        and''.
            (2) Storage water heaters.--Paragraph (3) of section 25C(d) 
        is amended by adding at the end the following flush sentence:
        ``For purposes of subparagraph (D)(i), the term `storage water 
        heater' means a water heater that has a water storage capacity 
        of more than 20 gallons but not more than 55 gallons.''.
    (d) Modification of Testing Standards for Biomass Stoves.--
Subparagraph (E) of section 25C(d)(3) is amended by inserting before 
the period the following: ``, when tested using the higher heating 
value of the fuel and in accordance with the Canadian Standards 
Administration B415.1 test protocol''.
    (e) Separate Standard for Oil Hot Water Boilers.--Paragraph (4) of 
section 25C(d) is amended by striking ``95'' and inserting ``95 (90 in 
the case of an oil hot water boiler)''.
    (f) Effective Date.--The amendments made by this section shall 
apply to property placed in service after December 31, 2013.

SEC. 3. EXTENSION OF CREDIT FOR ALTERNATIVE FUEL VEHICLE REFUELING 
              PROPERTY.

    (a) In General.--Subsection (g) of section 30C is amended by 
striking ``placed in service'' and all that follows and inserting 
``placed in service after December 31, 2015.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to property placed in service after December 31, 2013.

SEC. 4. EXTENSION OF CREDIT FOR 2-WHEELED PLUG-IN ELECTRIC VEHICLES.

    (a) In General.--Subparagraph (E) of section 30D(g)(3) is amended 
by striking ``January 1, 2014'' and inserting ``January 1, 2014 
(January 1, 2016, in the case of a vehicle that has 2 wheels).''.
    (b) Effective Date.--The amendment made by this section shall apply 
to vehicles acquired after December 31, 2013.

SEC. 5. EXTENSION OF SECOND GENERATION BIOFUEL PRODUCER CREDIT.

    (a) In General.--Clause (i) of section 40(b)(6)(J) is amended by 
striking ``January 1, 2014'' and inserting ``January 1, 2016''.
    (b) Effective Date.--The amendment made by this subsection shall 
apply to qualified second generation biofuel production after December 
31, 2013.

SEC. 6. EXTENSION OF INCENTIVES FOR BIODIESEL AND RENEWABLE DIESEL.

    (a) Credits for Biodiesel and Renewable Diesel Used as Fuel.--
Subsection (g) of section 40A is amended by striking ``December 31, 
2013'' and inserting ``December 31, 2015''.
    (b) Effective Date.--The amendment made by this section shall apply 
to fuel sold or used after December 31, 2013.

SEC. 7. EXTENSION AND MODIFICATION OF PRODUCTION CREDIT FOR INDIAN COAL 
              FACILITIES PLACED IN SERVICE BEFORE 2009.

    (a) In General.--Subparagraph (A) of section 45(e)(10) is amended 
by striking ``8-year period'' each place it appears and inserting ``10-
year period''.
    (b) Application to New Leases or Subleases.--Paragraph (10) of 
section 45(d) is amended by inserting before the period the following: 
``, and any new lease or sublease of such a facility''.
    (c) Effective Date.--The amendments made by this section shall 
apply to coal produced after December 31, 2013.

SEC. 8. EXTENSION OF CREDITS WITH RESPECT TO FACILITIES PRODUCING 
              ENERGY FROM CERTAIN RENEWABLE RESOURCES.

    (a) In General.--The following provisions of section 45(d) are each 
amended by striking ``January 1, 2014'' each place it appears and 
inserting ``January 1, 2017'':
            (1) Paragraph (1).
            (2) Paragraph (2)(A).
            (3) Paragraph (3)(A).
            (4) Paragraph (4)(B).
            (5) Paragraph (6).
            (6) Paragraph (7).
            (7) Paragraph (9).
            (8) Paragraph (11)(B).
    (b) Extension of Election To Treat Qualified Facilities as Energy 
Property.--Clause (ii) of section 48(a)(5)(C) is amended by striking 
``January 1, 2014'' and inserting ``January 1, 2017''.
    (c) Effective Dates.--The amendments made by this section shall 
take effect on January 1, 2014.

SEC. 9. EXTENSION OF CREDIT FOR ENERGY-EFFICIENT NEW HOMES.

    (a) In General.--Subsection (g) of section 45L is amended by 
striking ``December 31, 2013'' and inserting ``December 31, 2015''.
    (b) Effective Date.--The amendment made by this section shall apply 
to homes acquired after December 31, 2013.

SEC. 10. EXTENSION OF SPECIAL ALLOWANCE FOR SECOND GENERATION BIOFUEL 
              PLANT PROPERTY.

    (a) In General.--Subparagraph (D) of section 168(l)(2) is amended 
by striking ``January 1, 2014'' and inserting ``January 1, 2016''.
    (b) Effective Date.--The amendment made by this section shall apply 
to property placed in service after December 31, 2013.

SEC. 11. EXTENSION AND MODIFICATION OF ENERGY EFFICIENT COMMERCIAL 
              BUILDINGS DEDUCTION.

    (a) In General.--Subsection (h) of section 179D is amended by 
striking ``December 31, 2013'' and inserting ``December 31, 2015''.
    (b) Allocations to Indian Tribal Governments.--Paragraph (4) of 
section 179D(d) is amended by striking ``or local'' and inserting 
``local, or Indian tribal''.
    (c) Allocations to Certain Nonprofit Organizations.--
            (1) In general.--Paragraph (4) of section 179D(d), as 
        amended by subsection (b), is amended by inserting ``, or by an 
        organization that is described in section 501(c)(3) and exempt 
        from tax under section 501(a)'' after ``political subdivision 
        thereof''.
            (2) Clerical amendment.--The heading of paragraph (4) of 
        section 179D(d) is amended by inserting ``and property held by 
        certain non-profits'' after ``public property''.
    (d) Updated ASHRAE Standards for 2015.--
            (1) In general.--Paragraph (1) of section 179D(c) is 
        amended by striking ``Standard 90.1-2001'' each place it 
        appears and inserting ``Standard 90.1-2007''.
            (2) Conforming amendments.--
                    (A) Paragraph (2) of section 179D(c) is amended to 
                read as follows:
            ``(2) Standard 90.1-2007.--The term `Standard 90.1-2007' 
        means Standard 90.1-2007 of the American Society of Heating, 
        Refrigerating, and Air Conditioning Engineers and the 
        Illuminating Engineering Society of North America (as in effect 
        on the day before the date of the adoption of Standard 90.1-
        2010 of such Societies).''.
                    (B) Subsection (f) of section 179D is amended by 
                striking ``Standard 90.1-2001'' each place it appears 
                in paragraphs (1) and (2)(C)(i) and inserting 
                ``Standard 90.1-2007''.
                    (C) Paragraph (1) of section 179D(f) is amended--
                            (i) by striking ``Table 9.3.1.1'' and 
                        inserting ``Table 9.5.1'', and
                            (ii) by striking ``Table 9.3.1.2'' and 
                        inserting ``Table 9.6.1''.
            (3) Effective date.--The amendments made by this paragraph 
        shall apply to property placed in service after December 31, 
        2014.
    (e) Effective Date.--Except as provided in subsection (d)(3), the 
amendments made by this section shall apply to property placed in 
service after December 31, 2013.

SEC. 12. EXTENSION OF EXCISE TAX CREDITS RELATING TO CERTAIN FUELS.

    (a) Excise Tax Credits and Outlay Payments for Biodiesel and 
Renewable Diesel Fuel Mixtures.--
            (1) Paragraph (6) of section 6426(c) is amended by striking 
        ``December 31, 2013'' and inserting ``December 31, 2015''.
            (2) Subparagraph (B) of section 6427(e)(6) is amended by 
        striking ``December 31, 2013'' and inserting ``December 31, 
        2015''.
    (b) Extension of Alternative Fuels Excise Tax Credits.--
            (1) In general.--Sections 6426(d)(5) and 6426(e)(3) are 
        each amended by striking ``December 31, 2013'' and inserting 
        ``December 31, 2015''.
            (2) Outlay payments for alternative fuels.--Subparagraph 
        (C) of section 6427(e)(6) is amended by striking ``December 31, 
        2013'' and inserting ``December 31, 2015''.
    (c) Extension of Alternative Fuels Excise Tax Credits Relating to 
Liquefied Hydrogen.--
            (1) In general.--Sections 6426(d)(5) and 6426(e)(3), as 
        amended by subsection (b), are each amended by striking 
        ``(September 30, 2014 in the case of any sale or use involving 
        liquefied hydrogen)''.
            (2) Outlay payments for alternative fuels.--Paragraph (6) 
        of section 6427(e) is amended--
                    (A) by striking ``except as provided in 
                subparagraph (D), any'' in subparagraph (C) and 
                inserting ``any'',
                    (B) by striking the comma at the end of 
                subparagraph (C) and inserting ``, and'', and
                    (C) by striking subparagraph (D) and redesignating 
                subparagraph (E) as subparagraph (D).
    (d) Effective Dates.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendments made by this section shall apply to fuel sold or 
        used after December 31, 2013.
            (2) Liquefied hydrogen.--The amendments made by subsection 
        (c) shall apply to fuels sold or used after September 30, 2014.
    (e) Special Rule for Certain Periods During 2014.--Notwithstanding 
any other provision of law, in the case of--
            (1) any biodiesel mixture credit properly determined under 
        section 6426(c) of the Internal Revenue Code of 1986 for 
        periods after December 31, 2013, and before the date of the 
        enactment of this Act, and
            (2) any alternative fuel credit properly determined under 
        section 6426(d) of such Code for such periods,
such credit shall be allowed, and any refund or payment attributable to 
such credit (including any payment under section 6427(e) of such Code) 
shall be made, only in such manner as the Secretary of the Treasury (or 
the Secretary's delegate) shall provide. Such Secretary shall issue 
guidance within 30 days after the date of the enactment of this Act 
providing for a one-time submission of claims covering periods 
described in the preceding sentence. Such guidance shall provide for a 
180-day period for the submission of such claims (in such manner as 
prescribed by such Secretary) to begin not later than 30 days after 
such guidance is issued. Such claims shall be paid by such Secretary 
not later than 60 days after receipt. If such Secretary has not paid 
pursuant to a claim filed under this subsection within 60 days after 
the date of the filing of such claim, the claim shall be paid with 
interest from such date determined by using the overpayment rate and 
method under section 6621 of such Code.

SEC. 13. EXTENSION OF CREDIT FOR NEW QUALIFIED FUEL CELL MOTOR 
              VEHICLES.

    (a) In General.--Paragraph (1) of section 30B(k) is amended by 
striking ``December 31, 2014'' and inserting ``December 31, 2015''.
    (b) Effective Date.--The amendment made by this section shall apply 
to property purchased after December 31, 2014.

SEC. 14. EXTENSION OF SPECIAL RULE FOR SALES OR DISPOSITIONS TO 
              IMPLEMENT FERC OR STATE ELECTRIC RESTRUCTURING POLICY FOR 
              QUALIFIED ELECTRIC UTILITIES.

    (a) In General.--Paragraph (3) of section 451(i) is amended by 
striking ``January 1, 2014'' and inserting ``January 1, 2016''.
    (b) Effective Date.--The amendment made by this section shall apply 
to dispositions after December 31, 2013.

SEC. 15. EXTENSION OF THE ADVANCED ENERGY PROJECT CREDIT.

    (a) In General.--Subsection (d) of section 48C is amended by adding 
at the end the following new paragraph:
            ``(6) Additional 2013 allocations.--
                    ``(A) In general.--Not later than 180 days after 
                the date of the enactment of this paragraph, the 
                Secretary, in consultation with the Secretary of 
                Energy, shall establish a program to consider and award 
                certifications for qualified investments eligible for 
                credits under this section to qualifying advanced 
                energy project sponsors with respect to applications 
                received on or after the date of the enactment of this 
                paragraph.
                    ``(B) Limitation.--The total amount of credits that 
                may be allocated under the program described in 
                subparagraph (A) shall not exceed the 2013 allocation 
                amount reduced by so much of the 2013 allocation amount 
                as is taken into account as an increase in the 
                limitation described in paragraph (1)(B).
                    ``(C) Application of certain rules.--Rules similar 
                to the rules of paragraphs (2), (3), (4), and (5) shall 
                apply for purposes of the program described in 
                subparagraph (A), except that--
                            ``(i) Certification.--Applicants shall have 
                        2 years from the date that the Secretary 
                        establishes such program to submit 
                        applications.
                            ``(ii) Selection criteria.--In determining 
                        which qualifying advanced energy projects to 
                        certify under such program, the Secretary, in 
                        consultation with the Secretary of Energy, 
                        shall give the highest priority to projects 
                        which manufacture (other than assembly of 
                        components) property described in a subclause 
                        of subsection (c)(1)(A)(i) (or components 
                        thereof).
                            ``(iii) Review and redistribution.--The 
                        Secretary shall conduct a separate review and 
                        redistribution under paragraph (5) with respect 
                        to such program not later than 4 years after 
                        the date of the enactment of this paragraph.
                    ``(D) 2013 allocation amount.--For purposes of this 
                subsection, the term `2013 allocation amount' means 
                $5,000,000,000.
                    ``(E) Direct payments.--In lieu of any qualifying 
                advanced energy project credit which would otherwise be 
                determined under this section with respect to an 
                allocation to a taxpayer under this paragraph, the 
                Secretary shall, upon the election of the taxpayer, 
                make a grant to the taxpayer in the amount of such 
                credit as so determined. Rules similar to the rules of 
                section 50 shall apply with respect to any grant made 
                under this subparagraph.''.
    (b) Portion of 2013 Allocation Allocated Toward Pending 
Applications Under Original Program.--Subparagraph (B) of section 
48C(d)(1) is amended by inserting ``(increased by so much of the 2013 
allocation amount (not in excess of $1,500,000,000) as the Secretary 
determines necessary to make allocations to qualified investments with 
respect to which qualifying applications were submitted before the date 
of the enactment of paragraph (6))'' after ``$2,300,000,000''.
    (c) Conforming Amendment.--Paragraph (2) of section 1324(b) of 
title 31, United States Code, is amended by inserting ``48C(d)(6)(E),'' 
after ``36B,''.

SEC. 16. EXTENSION OF ENERGY CREDIT FOR CERTAIN PROPERTY UNDER 
              CONSTRUCTION.

    (a) Solar Energy Property.--Paragraphs (2)(A)(i)(II) and (3)(A)(ii) 
of section 48(a) are each amended by striking ``periods ending'' and 
inserting ``property the construction of which begins''.
    (b) Qualified Fuel Cell Property.--Section 48(c)(1)(D) is amended 
by striking ``for any period after December 31, 2016'' and inserting 
``the construction of which does not begin before January 1, 2017''.
    (c) Qualified Microturbine Property.--Section 48(c)(2)(D) is 
amended by striking ``for any period after December 31, 2016'' and 
inserting ``the construction of which does not begin before January 1, 
2017''.
    (d) Combined Heat and Power System Property.--Section 
48(c)(3)(A)(iv) is amended by striking ``which is placed in service'' 
and inserting ``construction of which begins''.
    (e) Qualified Small Wind Energy Property.--Section 48(c)(4)(C) is 
amended by striking ``for any period after December 31, 2016'' and 
inserting ``the construction of which does not begin before January 1, 
2017''.
    (f) Thermal Energy Property.--Section 48(a)(3)(A)(vii) is amended 
by striking ``periods ending'' and inserting ``property the 
construction of which begins''.
    (g) Effective Date.--The amendments made by this section shall take 
effect on the date of the enactment of this Act.
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