Bill Summary
The "Financing Our Energy Future Act" is a bill that will amend the Internal Revenue Code of 1986 in order to extend the publicly traded partnership ownership structure to include energy power generation projects and transportation fuels. This bill also includes provisions for the generation, storage, and distribution of renewable energy, as well as the production, storage, and transportation of various renewable fuels and chemicals. It also addresses the disposal and utilization of captured carbon oxide, and sets a deadline for the listing of qualifying renewable chemicals under the new legislation. This bill will go into effect after it is passed by Congress and signed into law.
Possible Impacts
1. This legislation may affect people who are interested in investing in energy power generation projects or transportation fuels, as it extends the publicly traded partnership ownership structure to these areas. This could potentially create new investment opportunities for individuals and companies.
2. People who work in the renewable energy industry may be impacted by this legislation, as it includes provisions for the generation and storage of renewable energy, such as solar and wind power. This could potentially lead to new job opportunities and growth in the renewable energy sector.
3. Consumers may be affected by this legislation, as it includes measures to promote the use of renewable fuels and chemicals, which could lead to a shift towards more sustainable and environmentally friendly products. This could impact the prices and availability of certain goods and services.
[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 1841 Introduced in Senate (IS)]
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116th CONGRESS
1st Session
S. 1841
To amend the Internal Revenue Code of 1986 to extend the publicly
traded partnership ownership structure to energy power generation
projects and transportation fuels, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
June 13, 2019
Mr. Coons (for himself, Mr. Moran, Mr. King, Ms. Collins, Mr. Carper,
Ms. Murkowski, Mr. Heinrich, Ms. Ernst, Mr. Gardner, Ms. Stabenow, Mr.
Crapo, and Mr. Bennet) 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 extend the publicly
traded partnership ownership structure to energy power generation
projects and transportation fuels, 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 ``Financing Our Energy Future Act''.
SEC. 2. EXTENSION OF PUBLICLY TRADED PARTNERSHIP OWNERSHIP STRUCTURE TO
ENERGY POWER GENERATION PROJECTS, TRANSPORTATION FUELS,
AND RELATED ENERGY ACTIVITIES.
(a) In General.--Subparagraph (E) of section 7704(d)(1) of the
Internal Revenue Code of 1986 is amended--
(1) by striking ``income and gains derived from the
exploration'' and inserting ``income and gains derived from the
following:
``(i) Minerals, natural resources, etc.--
The exploration'';
(2) by inserting ``or'' before ``industrial source'';
(3) by inserting a period after ``carbon dioxide''; and
(4) by striking ``, or the transportation or storage'' and
all that follows and inserting the following:
``(ii) Renewable energy.--The generation of
electric power (including the leasing of
tangible personal property used for such
generation) exclusively utilizing any resource
described in section 45(c)(1) or energy
property described in section 48 (determined
without regard to any termination date), or in
the case of a facility described in paragraph
(3) or (7) of section 45(d) (determined without
regard to any placed in service date or date by
which construction of the facility is required
to begin), the accepting or processing of such
resource.
``(iii) Energy storage property.--The sale
of electric power, capacity, resource adequacy,
demand response capabilities, or ancillary
services that is produced or made available
from any equipment or facility (operating as a
single unit or as an aggregation of units) the
principal function of which is to--
``(I) use mechanical, chemical,
electrochemical, hydroelectric, or
thermal processes to store energy that
was generated at one time for
conversion to electricity at a later
time, or
``(II) store thermal energy for
direct use for heating or cooling at a
later time in a manner that avoids the
need to use electricity at that later
time.
``(iv) Combined heat and power.--The
generation, storage, or distribution of thermal
energy exclusively utilizing property described
in section 48(c)(3) (determined without regard
to subparagraphs (B) and (D) thereof and
without regard to any placed in service date).
``(v) Renewable thermal energy.--The
generation, storage, or distribution of thermal
energy exclusively using any resource described
in section 45(c)(1) or energy property
described in clause (i) or (iii) of section
48(a)(3)(A).
``(vi) Waste heat to power.--The use of
recoverable waste energy, as defined in section
371(5) of the Energy Policy and Conservation
Act (42 U.S.C. 6341(5)) (as in effect on the
date of the enactment of the Financing Our
Energy Future Act).
``(vii) Renewable fuel infrastructure.--The
storage or transportation of any fuel described
in subsection (b), (c), (d), or (e) of section
6426.
``(viii) Renewable fuels.--The production,
storage, or transportation of any renewable
fuel described in section 211(o)(1)(J) of the
Clean Air Act (42 U.S.C. 7545(o)(1)(J)) (as in
effect on the date of the enactment of the
Financing Our Energy Future Act) or section
40A(d)(1).
``(ix) Fuel derived from captured carbon
oxides.--The production, storage, or
transportation of any fuel which--
``(I) uses carbon oxides captured
from an anthropogenic source or the
atmosphere as its primary feedstock,
and
``(II) is determined by the
Secretary, in consultation with the
Secretary of Energy and the
Administrator of the Environmental
Protection Agency, to achieve a
reduction of not less than a 60 percent
in lifecycle greenhouse gas emissions
(as defined in section 211(o)(1)(H) of
the Clean Air Act) compared to baseline
lifecycle greenhouse gas emissions (as
defined in section 211(o)(1)(C) of such
Act).
This clause shall not apply to any fuel which
uses as its primary feedstock carbon oxide
which is deliberately released from naturally-
occurring subsurface springs.
``(x) Renewable chemicals.--The production,
storage, or transportation of any qualifying
renewable chemical (as defined in paragraph
(6)).
``(xi) Energy efficient buildings.--The
audit and installation through contract or
other agreement of any energy efficient
building property described in section
179D(c)(1).
``(xii) Gasification with sequestration.--
The production of any product or the generation
of electric power from a project--
``(I) which meets the requirements
of subparagraphs (A) and (B) of section
48B(c)(1), and
``(II) not less than 75 percent of
the total carbon oxide emissions of
which is qualified carbon oxide (as
defined in section 45Q(c)) which is
disposed of or utilized as provided in
paragraph (7).
``(xiii) Carbon capture and
sequestration.--
``(I) Power generation
facilities.--The generation or storage
of electric power (including associated
income from the sale or marketing of
energy, capacity, resource adequacy,
and ancillary services) produced from
any power generation facility which is,
or from any power generation unit
within, a qualified facility which is
described in section 45Q(d) and not
less than 50 percent (30 percent in the
case of a facility or unit placed in
service before January 1, 2019) of the
total carbon oxide emissions of which
is qualified carbon oxide which is
disposed of or utilized as provided in
paragraph (7).
``(II) Other facilities.--The sale
of any good or service from any
facility (other than a power generation
facility) which is a qualified facility
described in section 45Q(d) and the
captured qualified carbon oxide (as so
defined) of which is disposed of as
provided in paragraph (7).''.
(b) Renewable Chemical.--
(1) In general.--Section 7704(d) of such Code is amended by
adding at the end the following new paragraph:
``(6) Qualifying renewable chemical.--
``(A) In general.--The term `qualifying renewable
chemical' means any renewable chemical (as defined in
section 9001 of the Farm Security and Rural Investment
Act of 2002 (7 U.S.C. 8101))--
``(i) which is produced by the taxpayer in
the United States or in a territory or
possession of the United States,
``(ii) which is the product of, or reliant
upon, biological conversion, thermal
conversion, or a combination of biological and
thermal conversion, of renewable biomass (as
defined in section 9001(13) of the Farm
Security and Rural Investment Act of 2002),
``(iii) the biobased content of which is 95
percent or higher,
``(iv) which is sold or used by the
taxpayer--
``(I) for the production of
chemical products, polymers, plastics,
or formulated products, or
``(II) as chemicals, polymers,
plastics, or formulated products,
``(v) which is not sold or used for the
production of any food, feed, or fuel, and
``(vi) which is--
``(I) acetic acid, acetone, acrylic
acid, acyl glutamate, adipic acid,
algae oils, algae sugars, 1,4-
butanediol (BDO), iso-butanol, n-
butanol, C3-C9 aldehydes, C3-C9
ketones, C10 and higher hydrocarbons
produced from olefin metathesis,
carboxylic acids produced from olefin
metathesis, cellulosic sugar, diethyl
methylene malonate, dodecanedioic acid
(DDDA), esters produced from olefin
metathesis, ethyl acetate, ethylene
glycol, farnesene, 2,5-
furandicarboxylic acid, gamma-
butyrolactone, glucaric acid,
hexamethylenediamine (HMD), 3-hydroxy
propionic acid, isoamylene, iso-butene,
isoprene, isopropanol, itaconic acid,
lactide, levulinic acid, modified
vegetable oils (oligomers or polymers)
as produced from olefin metathesis,
polyhydroxyalkonate (PHA), polylactic
acid (PLA), polyethylene furanoate
(PEF), polyethylene terephthalate
(PET), polyitaconic acid, polyols from
vegetable oils, poly(xylitan levulinate
ketal), 1,3-propanediol, 1,2-
propanediol, rhamnolipids, short and
medium chain carboxylic acids produced
from anaerobic digestion, succinic
acid, terephthalic acid, vegetable
fatty acid derived from ethyl esters
containing vegetable oil, or p-Xylene,
or
``(II) any chemical not described
in clause (i) which is a chemical
listed by the Secretary for purposes of
this paragraph.
``(B) Biobased content.--For purposes of
subparagraph (A)(iii), the term `biobased content
percentage' means, with respect to any renewable
chemical, the biobased content of such chemical
(expressed as a percentage) determined by testing
representative samples using the American Society for
Testing and Materials (ASTM) D6866.''.
(2) List of other qualifying renewable chemicals.--Not
later than 180 days after the date of the enactment of this
Act, the Secretary of the Treasury (or the Secretary's
delegate), in consultation with the Secretary of Agriculture,
shall establish a program to consider applications from
taxpayers for the listing of chemicals under section
7704(d)(6)(A)(vi)(II) of the Internal Revenue Code of 1986 (as
added by paragraph (1)).
(c) Disposal and Utilization of Captured Carbon Oxide.--Section
7704(d) of such Code, as amended by subsection (b), is amended by
adding at the end the following new paragraph:
``(7) Disposal and utilization of captured carbon oxide.--
For purposes of clauses (xii)(III) and (xiii)(I) of paragraph
(1)(E), carbon oxide is disposed of or utilized as provided in
this paragraph if such carbon oxide is--
``(A) placed into secure geological storage (as
determined under section 45Q(f)(2)),
``(B) used as a tertiary injectant (as defined in
section 45Q(e)(3)) in a qualified enhanced oil or
natural gas recovery project (as defined in section
45Q(e)(2)) and placed into secure geological storage
(as so determined), or
``(C) utilized in a manner described in section
45Q(f)(5).''.
(d) Effective Date.--The amendments made by this section shall take
effect on the date of the enactment of this Act, in taxable years
ending after such date.
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