S.Amdt. 525

SA 525. Mr. REID submitted an amendment intended to be proposed to
amendment SA 98 proposed by Mr. Inouye (for himself and Mr. Baucus) to
the bill H.R. 1, making supplemental appropriations for job
preservation and creation, infrastructure investment, energy efficiency
and science, assistance to the unemployed, and State and local fiscal
stabilization, for fiscal year ending September 30, 2009, and for other
purposes; which was ordered to lie on the table; as follows:

On page 76, line 14, strike after ``That none'' and all
that follows through ``project'' on line 25 and insert ``That
not less than $25,000,000 shall be available for and
distributed equally among the members of an interagency
working group including the Secretary of Energy, the
Secretary of Interior, and heads of other applicable agencies
for the purposes of enhancing the processing of permit
applications for renewable energy projects and related
transmission facilities on public land''.

On page 88, line 19, insert ``and new or significantly
improved'' after ``commercial''.

On page 90, between lines 14 and 15, insert the following:

SEC. 4__. RENEWABLE ENERGY.

(a) In General.--Section 365 of the Energy Policy Act of
2005 (42 U.S.C. 15924) is amended by adding at the end the
following:
``(k) Pilot Project Office to Improve Federal Permit
Coordination for Renewable Energy.--
``(1) Definition of renewable energy.--In this subsection,
the term `renewable energy' means energy derived from a wind
or solar source.
``(2) Field offices.--As part of the Pilot Project, the
Secretary shall designate 1 field office of the Bureau of
Land Management in each of the following States to serve as
Renewable Energy Pilot Project Offices for coordination of
Federal permits for renewable energy projects on Federal
land:
``(A) Arizona.
``(B) California.
``(C) New Mexico.
``(D) Nevada.
``(E) Montana.
``(3) Memorandum of understanding.--
``(A) In general.--Not later than 90 days after the date of
enactment of this subsection, the Secretary shall enter into
an amended memorandum of understanding under subsection (b)
to provide for the inclusion of the additional Renewable
Energy Pilot Project Offices in the Pilot Project.
``(B) Signatures by governors.--The Secretary may request
that the Governors of each of the States described in
paragraph (2) be signatories to the amended memorandum of
understanding.
``(C) Designation of qualified staff.--Not later than 30
days after the date of the signing of the amended memorandum
of understanding, all Federal signatory parties shall, if
appropriate, assign to each Renewable Energy Pilot Project
Offices designated under paragraph (2) an employee described
in subsection (c) to carry out duties described in that
subsection.
``(D) Additional personnel.--The Secretary shall assign to
each Renewable Energy Pilot Project Office additional
personnel under subsection (f).''.
(b) Permit Processing Improvement Fund.--Section 35(c)(3)
of the Mineral Leasing Act (30 U.S.C. 191(c)(3)) is amended--
(1) by striking ``use authorizations'' and inserting ``and
renewable energy use authorizations''; and
(2) by striking ``section 365(d)'' and inserting
``subsections (d) and (k)(2) of section 365''.

SEC. 4__. MAXIMUM FUNDING AMOUNT FOR THIRD-PARTY FINANCE.

Section 1222 of the Energy Policy Act of 2005 (42 U.S.C.
16421) is amended by striking subsection (g) and inserting
the following:
``(g) Maximum Funding Amount.--The Secretary shall not
accept and use more than

[[Page S1771]]

$2,500,000,000 under subsection (c)(1) for the period of
fiscal years 2009 through 2018.''.

On page 570, between lines 8 and 9, insert the following:

SEC. 1903. GRANTS FOR SPECIFIED ENERGY PROPERTY IN LIEU OF
TAX CREDITS.

(a) Grants.--
(1) In general.--Upon application, the Secretary of Energy
shall, within 60 days of the application and subject to the
requirements of this section, provide a grant to each person
who places in service specified energy property during 2009
or 2010 to reimburse such person for a portion of the expense
of such facility as provided in subsection (b).
(2) Special rule for utility-scale solar and geothermal
property.--
(A) In general.--In the case of any specified energy
property which is a part of a utility-scale solar or
geothermal project, paragraph (1) shall be applied by
substituting ``2009, 2010, 2011, or 2012'' for ``2009 or
2010''.
(B) Utility-scale solar or geothermal project.--For
purposes of this section, the term ``utility-scale solar or
geothermal project'' means any project which--
(i)(I) uses solar energy for a purpose described in clause
(i) or (ii) of section 48(a)(3)(A) of the Internal Revenue
Code of 1986, or
(II) produces, distributes, or uses energy derived from
geothermal deposits (within the meaning of section 613(e)(2)
of such Code), and
(ii) has a nameplate capacity rating which is not less
than--

(I) 25 megawatts electrical, or
(II) 10 megawatts thermal.

(b) Grant Amount.--
(1) In general.--The amount of the grant under subsection
(a) with respect to any specified energy property shall be
the applicable percentage of the basis of such facility.
(2) Applicable percentage.--For purposes of paragraph (1),
the term ``applicable percentage'' means--
(A) 30 percent in the case of any property described in
paragraphs (1) through (4) of subsection (c), and
(B) 10 percent in the case of any other property.
(3) Dollar limitations.--In the case of property described
in paragraph (2), (6), or (7) of subsection (c), the amount
of any grant under this section with respect to such property
shall not exceed the limitation described in section
48(c)(1)(B), 48(c)(2)(B), or 48(c)(3)(B) of the Internal
Revenue Code of 1986, respectively, with respect to such
property.
(c) Specified Energy Property.--For purposes of this
section, the term ``specified energy property'' means any of
the following:
(1) Qualified facilities.--Any facility described in
paragraph (1), (2), (3), (4), (6), (7), (9), or (11) of
section 45(d) of the Internal Revenue Code of 1986.
(2) Qualified fuel cell property.--Any qualified fuel cell
property (as defined in section 48(c)(1) of such Code).
(3) Solar property.--Any property described in clause (i)
or (ii) of section 48(a)(3)(A) of such Code.
(4) Qualified small wind energy property.--Any qualified
small wind energy property (as defined in section 48(c)(4) of
such Code).
(5) Geothermal property.--Any property described in clause
(iii) of section 48(a)(3)(A) of such Code.
(6) Qualified microturbine property.--Any qualified
microturbine property (as defined in section 48(c)(2) of such
Code).
(7) Combined heat and power system property.--Any combined
heat and power system property (as defined in section
48(c)(3) of such Code).
(8) Geothermal heatpump property.--Any property described
in clause (vii) of section 48(a)(3)(A) of such Code.
(d) Application of Certain Rules.--In making grants under
this section, the Secretary of Energy shall apply rules
similar to the rules of section 50 of the Internal Revenue
Code of 1986. In applying such rules, if the facility is
disposed of, or otherwise ceases to be a qualified renewable
energy facility, the Secretary of Energy shall provide for
the recapture of the appropriate percentage of the grant
amount in such manner as the Secretary of Energy determines
appropriate.
(e) Exception for Certain Non-Taxpayers.--The Secretary of
Energy shall not make any grant under this section to any
Federal, State, or local government (or any political
subdivision, agency, or instrumentality thereof) or any
organization described in section 501(c) of the Internal
Revenue Code of 1986 and exempt from tax under section 501(a)
of such Code.
(f) Definitions.--Terms used in this section which are also
used in section 45 or 48 of the Internal Revenue Code of 1986
shall have the same meaning for purposes of this section as
when used in such section 45 or 48. Any reference in this
section to the Secretary of the Treasury shall be treated as
including the Secretary's delegate.
(g) Coordination Between Departments of Treasury and
Energy.--The Secretary of the Treasury shall provide the
Secretary of Energy with such technical assistance as the
Secretary of Energy may require in carrying out this section.
The Secretary of Energy shall provide the Secretary of the
Treasury with such information as the Secretary of the
Treasury may require in carrying out the amendment made by
section 1604.
(h) Appropriations.--There is hereby appropriated to the
Secretary of Energy such sums as may be necessary to carry
out this section.
(i) Termination.--The Secretary of Energy shall not make
any grant to any person under this section unless the
application of such person for such grant is received before
January 1, 2013.
(j) Coordination With Renewable Energy Grants.--Section 48
is amended by adding at the end the following new subsection:
``(d) Coordination With Department of Energy Grants.--In
the case of any property with respect to which the Secretary
of Energy makes a grant under section 1903 of the American
Recovery and Reinvestment Tax Act of 2009--
``(1) Denial of production and investment credits.--No
credit shall be determined under this section or section 45
with respect to such property for the taxable year in which
such grant is made or any subsequent taxable year.
``(2) Recapture of credits for progress expenditures made
before grant.--If a credit was determined under this section
with respect to such property for any taxable year ending
before such grant is made--
``(A) the tax imposed under subtitle A on the taxpayer for
the taxable year in which such grant is made shall be
increased by so much of such credit as was allowed under
section 38,
``(B) the general business carryforwards under section 39
shall be adjusted so as to recapture the portion of such
credit which was not so allowed, and
``(C) the amount of such grant shall be determined without
regard to any reduction in the basis of such property by
reason of such credit.
``(3) Treatment of grants.--Any such grant shall--
``(A) not be includible in the gross income of the
taxpayer, but
``(B) shall be taken into account in determining the basis
of the property to which such grant relates, except that the
basis of such property shall be reduced under section 50(c)
in the same manner as a credit allowed under subsection
(a).''.
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