S.Amdt. 1734

SA 1734. Mr. GRAHAM (for himself and Mr. Heller) submitted an
amendment intended to be proposed to amendment SA 1618 proposed by Mr.
McConnell (for Mr. Hatch (for himself and Ms. Murkowski)) to the bill
H.R. 1, to provide for reconciliation pursuant to titles II and V of
the concurrent resolution on the budget for fiscal year 2018; which was
ordered to lie on the table; as follows:

At the appropriate place, insert the following:

SEC. ___. TECHNOLOGIES FOR ENERGY JOBS AND SECURITY.

(a) Extension and Phaseout of Residential Energy Efficient
Property.--
(1) Extension.--Section 25D(h) is amended by striking
``December 31, 2016 (December 31, 2021, in the case of any
qualified solar electric property expenditures and qualified
solar water heating property expenditures)'', and inserting
``December 31, 2021''.
(2) Phaseout.--
(A) In general.--Paragraphs (3), (4), and (5) of section
25D(a) are amended by striking ``30 percent'' each place it
appears and inserting ``the applicable percentage''.
(B) Conforming amendment.--Section 25D(g) is amended by
striking ``paragraphs (1) and (2) of''.
(3) Effective date.--The amendments made by this subsection
shall take effect on January 1, 2017.
(b) Extension and Phaseout of Energy Credit.--
(1) Credit percentage for geothermal energy property.--
Section 48(a)(2)(A)(i)(II) is amended by striking ``paragraph
(3)(A)(i)'' and inserting ``clause (i) or (iii) of paragraph
(3)(A)''.
(2) Extension of solar and thermal energy property.--
Section 48(a)(3)(A) is amended--
(A) in clause (ii) by striking ``periods ending before
January 1, 2017'' and inserting ``property the construction
of which begins before January 1, 2022''; and
(B) in clause (vii) by striking ``periods ending before
January 1, 2017'' and inserting ``property the construction
of which begins before January 1, 2022''.
(3) Phaseout of 30-percent credit rate for geothermal
energy property.--Section 48(a)(6) is amended--
(A) in the heading, by inserting ``and geothermal'' after
``solar'';
(B) in subparagraph (A), by striking ``paragraph
(3)(A)(i)'' and inserting ``clause (i) or (iii) of paragraph
(3)(A)''; and
(C) in subparagraph (B), by striking ``property energy
property described in paragraph (3)(A)(i)'' and inserting
``energy property described in clause (i) or (iii) of
paragraph (3)(A)''.
(4) Phaseout of 30-percent credit rate for fiber-optic
solar, qualified fuel cell, and qualified small wind energy
property.--
(A) In general.--Section 48(a) is amended by adding the
following:
``(7) Phaseout for fiber-optic solar, qualified fuel cell,
and qualified small wind energy property.--In the case of any
energy property described in paragraph (3)(A)(ii), qualified
fuel cell property, or qualified small wind property, the
energy percentage determined under paragraph (2) shall be
equal to--
``(A) in the case of any property the construction of which
begins after December 31, 2019, and before January 1, 2021,
26 percent, and
``(B) in the case of any property the construction of which
begins after December 31, 2020, and before January 1, 2022,
22 percent.''.
(B) Conforming amendment.--Section 48(a)(2)(A) is amended
by striking ``paragraph (6)'' and inserting ``paragraphs (6)
and (7)''.
(5) Extension of 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, 2022''.
(6) Extension of 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, 2022''.
(7) Extension of combined heat and power system property.--
Section 48(c)(3)(A)(iv) is amended by striking ``which is
placed in service before January 1, 2017'' and inserting
``the construction of which begins before January 1, 2022''.
(8) Extension of 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, 2022''.
(9) Effective date.--The amendments made by this subsection
shall take effect on January 1, 2017.
(c) Waste Heat to Power Property.--
(1) In general.--
(A) Introduction of waste to heat power energy property.--
Section 48(a)(3)(A) is amended--
(i) at the end of clause (vi) by striking ``or''; and
(ii) at the end of clause (vii) by inserting ``or'' after
the comma; and
(iii) by adding the following:
``(viii) waste heat to power property,''.

[[Page S7599]]

(B) Definitions and limitations.--Section 48(c) is amended
by adding the following:
``(5) Waste heat to power property.--
``(A) In general.--The term `waste heat to power property'
means property--
``(i) comprising a system which generates electricity
through the recovery of a qualified waste heat resource, and
``(ii) the construction of which begins before January 1,
2022.
``(B) Qualified waste heat resource.--The term `qualified
waste heat resource' means--
``(i) exhaust heat or flared gas from an industrial process
that does not have, as its primary purpose, the production of
electricity, and
``(ii) a pressure drop in any gas for an industrial or
commercial process.
``(C) Limitations.--
``(i) In general.--For purposes of subsection (a)(1), the
basis of any waste heat to power property taken into account
under this section shall not exceed the excess of--

``(I) the basis of such property, over
``(II) the fair market value of comparable property which
does not have the capacity to capture and convert a qualified
waste heat resource to electricity.

``(ii) Capacity limitation.--The term `waste heat to power
property' shall not include any property comprising a system
if such system has a capacity in excess of 50 megawatts.''.
(2) Effective date.--The amendments made by this subsection
shall apply to periods after December 31, 2016, in taxable
years ending after such date, under rules similar to the
rules of section 48(m) of the Internal Revenue Code of 1986
(as in effect on the day before the date of the enactment of
the Revenue Reconciliation Act of 1990).
(d) Modifications of Credit for Production From Advanced
Nuclear Power Facilities.--
(1) Treatment of unutilized limitation amounts.--Section
45J(b) is amended--
(A) in paragraph (4), by inserting ``or any amendment to''
after ``enactment of'', and
(B) by adding at the end the following new paragraph:
``(5) Allocation of unutilized limitation.--
``(A) In general.--Any unutilized national megawatt
capacity limitation shall be allocated by the Secretary under
paragraph (3) as rapidly as is practicable after December 31,
2020--
``(i) first to facilities placed in service on or before
such date to the extent that such facilities did not receive
an allocation equal to their full nameplate capacity, and
``(ii) then to facilities placed in service after such date
in the order in which such facilities are placed in service.
``(B) Unutilized national megawatt capacity limitation.--
The term `unutilized national megawatt capacity limitation'
means the excess (if any) of--
``(i) 6,000 megawatts, over
``(ii) the aggregate amount of national megawatt capacity
limitation allocated by the Secretary before January 1, 2021,
reduced by any amount of such limitation which was allocated
to a facility which was not placed in service before such
date.
``(C) Coordination with other provisions.--In the case of
any unutilized national megawatt capacity limitation
allocated by the Secretary pursuant to this paragraph--
``(i) such allocation shall be treated for purposes of this
section in the same manner as an allocation of national
megawatt capacity limitation, and
``(ii) subsection (d)(1)(B) shall not apply to any facility
which receives such allocation.''.
(2) Transfer of credit by certain public entities.--
(A) In general.--Section 45J is amended--
(i) by redesignating subsection (e) as subsection (f), and
(ii) by inserting after subsection (d) the following new
subsection:
``(e) Transfer of Credit by Certain Public Entities.--
``(1) In general.--If, with respect to a credit under
subsection (a) for any taxable year--
``(A) the taxpayer would be a qualified public entity, and
``(B) such entity elects the application of this paragraph
for such taxable year with respect to all (or any portion
specified in such election) of such credit,
the eligible project partner specified in such election (and
not the qualified public entity) shall be treated as the
taxpayer for purposes of this title with respect to such
credit (or such portion thereof).
``(2) Definitions.--For purposes of this subsection--
``(A) Qualified public entity.--The term `qualified public
entity' means--
``(i) a Federal, State, or local government entity, or any
political subdivision, agency, or instrumentality thereof,
``(ii) a mutual or cooperative electric company described
in section 501(c)(12) or section 1381(a)(2), or
``(iii) a not-for-profit electric utility which has or had
received a loan or loan guarantee under the Rural
Electrification Act of 1936.
``(B) Eligible project partner.--The term `eligible project
partner' means--
``(i) any person responsible for, or participating in, the
design or construction of the advanced nuclear power facility
to which the credit under subsection (a) relates,
``(ii) any person who participates in the provision of the
nuclear steam supply system to the advanced nuclear power
facility to which the credit under subsection (a) relates,
``(iii) any person who participates in the provision of
nuclear fuel to the advanced nuclear power facility to which
the credit under subsection (a) relates, or
``(iv) any person who has an ownership interest in such
facility.
``(3) Special rules.--
``(A) Application to partnerships.--In the case of a credit
under subsection (a) which is determined at the partnership
level--
``(i) for purposes of paragraph (1)(A), a qualified public
entity shall be treated as the taxpayer with respect to such
entity's distributive share of such credit, and
``(ii) the term `eligible project partner' shall include
any partner of the partnership.
``(B) Taxable year in which credit taken into account.--In
the case of any credit (or portion thereof) with respect to
which an election is made under paragraph (1), such credit
shall be taken into account in the first taxable year of the
eligible project partner ending with, or after, the qualified
public entity's taxable year with respect to which the credit
was determined.
``(C) Treatment of transfer under private use rules.--For
purposes of section 141(b)(1), any benefit derived by an
eligible project partner in connection with an election under
this subsection shall not be taken into account as a private
business use.''.
(B) Special rule for proceeds of transfers for mutual or
cooperative electric companies.--Section 501(c)(12) is
amended by adding at the end the following new subparagraph:
``(I) In the case of a mutual or cooperative electric
company described in this paragraph or an organization
described in section 1381(a)(2), income received or accrued
in connection with an election under section 45J(e)(1) shall
be treated as an amount collected from members for the sole
purpose of meeting losses and expenses.''.
(3) Effective dates.--
(A) Treatment of unutilized limitation amounts.--The
amendment made by paragraph (1) shall take effect on the date
of the enactment of this Act.
(B) Transfer of credit by certain public entities.--The
amendments made by paragraph (2) shall apply to taxable years
beginning after December 31, 2017.
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