H.R. 487 – Reading Mode

112th CONGRESS

1st Session

H. R. 487

IN THE HOUSE OF REPRESENTATIVES

January 26, 2011

Mr. Garamendi (for himself, Mr. DeFazio, Mr. Hinchey, and Mr. Holden) introduced the following bill; which was referred to the Committee on Oversight and Government Reform, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned

A BILL

To require 100 percent domestic content in green technologies purchased by Federal agencies or by States with Federal funds and in property eligible for the renewable energy production or investment tax credits.

Short title

This Act may be cited as the Manufacture Renewable Energy Systems: Make it in America Act of 2011.

Requirements for purchase of green technologies with 100 percent domestic content for use by Federal Government and States

(a)

Requirement for purchases by Federal Government

Notwithstanding chapter 83 of title 41, United States Code (popularly referred to as the Buy American Act), and subject to subsection (c), only green technologies that are 100 percent manufactured in the United States, from articles, materials, or supplies 100 percent of which are grown, produced, or manufactured in the United States, may be acquired for use by the Federal Government.

(b)

Requirement for purchases by States using Federal funds

Subject to subsection (c), Federal funds may not be provided to a State for the purchase of green technologies unless the State agrees that the funds shall be used to purchase only green technologies that are 100 percent manufactured in the United States, from articles, materials, or supplies 100 percent of which are grown, produced, or manufactured in the United States.

(c)

Phase-In of requirement

During the first three fiscal years occurring after the date of the enactment of this Act, subsections (a) and (b) shall be applied—

(1)

during the first fiscal year beginning after such date of enactment, by substituting 30 percent for 100 percent;

(2)

during the second fiscal year beginning after such date of enactment, by substituting 50 percent for 100 percent; and

(3)

during the third fiscal year beginning after such date of enactment, by substituting 80 percent for 100 percent.

(d)

Green technologies defined

In this Act, the term green technologies means renewable energy and energy efficiency products and services that—

(1)

reduce dependence on unreliable sources of energy by encouraging the use of sustainable biomass, wind, small-scale hydroelectric, solar, geothermal, and other renewable energy and energy efficiency products and services; and

(2)

use hybrid fossil-renewable energy systems.

(e)

Effective date

This section shall apply to purchases of green technologies on and after October 1 of the first fiscal year beginning after the date of the enactment of this Act.

Renewable energy production and investment tax credits limited to domestically produced property

(a)

Credit for electricity produced from certain renewable resources

Subsection (d) of section 45 of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph:

(12)

Domestic content requirement

(A)

In general

In the case of any facility originally placed in service after the date of the enactment of the Manufacture Renewable Energy Systems: Make it in America Act of 2011, such facility shall not be treated as a qualified facility for purposes of this section unless such facility is 100 percent manufactured in the United States, from articles, materials, or supplies 100 percent of which are grown, produced, or manufactured in the United States.

(B)

Transitional rule

In the case of any facility originally placed in service before January 1, 2014, subparagraph (A) shall be applied—

(i)

in the case a facility originally placed in service during 2011, by substituting 30 percent for 100 percent both places it appears,

(ii)

in the case a facility originally placed in service during 2012, by substituting 50 percent for 100 percent both places it appears, and

(iii)

in the case a facility originally placed in service during 2013, by substituting 80 percent for 100 percent both places it appears.

(b)

Investment energy credit

Section 48 of such Code is amended by adding at the end the following new subsection:

(e)

Domestic content requirement

(1)

In general

In the case of any property for any period after the date of the enactment of the Manufacture Renewable Energy Systems: Make it in America Act of 2011, such property shall not be treated as energy property for purposes of this section unless such property is 100 percent manufactured in the United States, from articles, materials, or supplies 100 percent of which are grown, produced, or manufactured in the United States.

(2)

Transitional rule

In the case of any property for any period before January 1, 2014, paragraph (1) shall be applied—

(A)

in the case of any period during 2011, by substituting 30 percent for 100 percent both places it appears,

(B)

in the case of any period during 2012, by substituting 50 percent for 100 percent both places it appears, and

(C)

in the case of any period during 2013, by substituting 80 percent for 100 percent both places it appears.

(c)

Effective dates

(1)

Production credit

The amendments made by subsection (a) shall apply to facilities originally placed in service after the date of the enactment of this Act.

(2)

Investment credit

The amendments made by subsection (b) shall apply to periods after the date of the enactment of this Act, 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).