U.S. Department of Energy - Energy Efficiency and Renewable Energy
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Ticket to Work and Work Incentives Improvement Act of 1999
SEC. 507. EXTENSION AND MODIFICATION OF CREDIT FOR PRODUCING ELECTRICITY FROM CERTAIN RENEWABLE RESOURCES.
(a) EXTENSION AND MODIFICATION OF PLACED-IN-SERVICE RULES- Paragraph (3) of section 45(c) of the Internal Revenue Code of 1986 is amended to read as follows:
`(3) QUALIFIED FACILITY –
`(A) WIND FACILITY- In the case of a facility using wind to produce electricity, the term `qualified facility' means any facility owned by the taxpayer which is originally placed in service after December 31, 1993, and before January 1, 2002.
`(B) CLOSED-LOOP BIOMASS FACILITY- In the case of a facility using closed-loop biomass to produce electricity, the term `qualified facility' means any facility owned by the taxpayer which is originally placed in service after December 31, 1992, and before January 1, 2002.
`(C) POULTRY WASTE FACILITY- In the case of a facility using poultry waste to produce electricity, the term `qualified facility' means any facility of the taxpayer which is originally placed in service after December 31, 1999, and before January 1, 2002.'.
(b) EXPANSION OF QUALIFIED ENERGY RESOURCES –
(1) IN GENERAL- Section 45(c)(1) of such Code (defining qualified energy resources) is amended by striking `and' at the end of subparagraph (A), by striking the period at the end of subparagraph (B) and inserting `, and', and by adding at the end the following new subparagraph:
`(C) poultry waste.'.
(2) DEFINITION- Section 45(c) of such Code is amended by adding at the end the following new paragraph:
`(4) POULTRY WASTE- The term 'poultry waste' means poultry manure and litter, including wood shavings, straw, rice hulls, and other bedding material for the disposition of manure.'.
(c) SPECIAL RULES- Section 45(d) of such Code (relating to definitions and special rules) is amended by adding at the end the following new paragraphs:
`(6) CREDIT ELIGIBILITY IN THE CASE OF GOVERNMENT-OWNED FACILITIES USING POULTRY WASTE- In the case of a facility using poultry waste to produce electricity and owned by a governmental unit, the person eligible for the credit under subsection (a) is the lessee or the operator of such facility.
`(7) CREDIT NOT TO APPLY TO ELECTRICITY SOLD TO UTILITIES UNDER CERTAIN CONTRACTS –
`(A) IN GENERAL- The credit determined under subsection (a) shall not apply to electricity –
`(i) produced at a qualified facility described in paragraph (3)(A) which is placed in service by the taxpayer after June 30, 1999, and
`(ii) sold to a utility pursuant to a contract originally entered into before January 1, 1987 (whether or not amended or restated after that date).
`(B) EXCEPTION- Subparagraph (A) shall not apply if –
`(i) the prices for energy and capacity from such facility are established pursuant to an amendment to the contract referred to in subparagraph (A)(ii),
`(ii) such amendment provides that the prices set forth in the contract which exceed avoided cost prices determined at the time of delivery shall apply only to annual quantities of electricity (prorated for partial years) which do not exceed the greater of-
`(I) the average annual quantity of electricity sold to the utility under the contract during calendar years 1994, 1995, 1996, 1997, and 1998, or
`(II) the estimate of the annual electricity production set forth in the contract, or, if there is no such estimate, the greatest annual quantity of electricity sold to the utility under the contract in any of the calendar years 1996, 1997, or 1998, and
`(iii) such amendment provides that energy and capacity in excess of the limitation in clause (ii) may be –
`(I) sold to the utility only at prices that do not exceed avoided cost prices determined at the time of delivery, or
`(II) sold to a third party subject to a mutually agreed upon advance notice to the utility.
For purposes of this subparagraph, avoided cost prices shall be determined as provided for in 18 CFR 292.304(d)(1) or any successor regulation.'.
(d) EFFECTIVE DATE- The amendments made by this section shall take effect on the date of the enactment of this Act.
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