S.Amdt. 3615

SA 3615. Mr. MORAN (for himself and Mr. Coons) submitted an amendment
intended to be proposed to amendment SA 3464 submitted by Mr. Thune
(for himself and Mr. Nelson) to the bill H.R. 636, to amend the
Internal Revenue Code of 1986 to permanently extend increased expensing
limitations, and for other purposes; which was ordered to lie on the
table; as follows:

At the appropriate place, insert the following:

SEC. ____. 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'',

[[Page S1868]]

(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) Electricity storage devices.--The receipt and sale
of electric power that has been stored in a device directly
connected to the grid.
``(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 Federal Aviation Administration
Reauthorization Act of 2016).
``(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 Federal
Aviation Administration Reauthorization Act of 2016) or
section 40A(d)(1).
``(ix) Renewable chemicals.--The production, storage, or
transportation of any qualifying renewable chemical (as
defined in paragraph (6)).
``(x) Energy efficient buildings.--The audit and
installation through contract or other agreement of any
energy efficient building property described in section
179D(c)(1).
``(xi) Gasification with sequestration.--The production of
any product or the generation of electric power from a
project that meets the requirements of subparagraphs (A) and
(B) of section 48B(c)(1) and that separates and sequesters in
secure geological storage (as determined under section
45Q(d)(2)) at least 75 percent of such project's total
qualified carbon dioxide (as defined in section 45Q(b)).
``(xii) 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 described in section 45Q(c) which--

``(aa) in the case of a power generation facility or power
generation unit placed in service after January 8, 2013,
captures 50 percent or more of the qualified carbon dioxide
(as defined in section 45Q(b)) of such facility and disposes
of such captured qualified carbon dioxide in secure
geological storage (as determined under section 45Q(d)(2)),
and
``(bb) in the case of a power generation facility or power
generation unit placed in service before January 9, 2013,
captures 30 percent or more of the qualified carbon dioxide
(as defined in section 45Q(b)) of such facility and disposes
of such captured qualified carbon dioxide in secure
geological storage (as determined under section 45Q(d)(2)).

``(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(c) and
the captured qualified carbon dioxide (as so defined) of
which is disposed of in secure geological storage (as
determined under section 45Q(d)(2)).''.

(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 Agriculture Act of 2014)--
``(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, acrylic acid, acyl glutamate, adipic
acid, algae oils, algae sugars, 1,4-butanediol (BDO), iso-
butanol, n-butanol, 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,
isoprene, itaconic acid, levulinic acid, 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, succinic acid,
terephthalic acid, 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
7874(d)(6)(A)(vi)(II) (as added by paragraph (1)).
(c) 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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