GREEN Act of 2021

I 117TH CONGRESS 1ST SESSION H. R. 848 To amend the Internal Revenue Code of 1986 to provide incentives for renewable energy and energy efficiency, and for other purposes. IN THE HOUSE OF REPRESENTATIVES FEBRUARY 4, 2021 Mr. THOMPSON of California (for himself, Mr. NEAL, Mr. DOGGETT, Mr. LAR- SON of Connecticut, Mr. BLUMENAUER, Mr. KIND, Mr. PASCRELL, Mr. DANNY K. DAVIS of Illinois, Ms. SA´NCHEZ, Mr. HIGGINS of New York, Ms. SEWELL, Ms. DELBENE, Ms. CHU, Ms. MOORE of Wisconsin, Mr. KILDEE, Mr. BRENDAN F. BOYLE of Pennsylvania, Mr. BEYER, Mr. EVANS, Mr. SCHNEIDER, Mr. SUOZZI, Mr. PANETTA, Mrs. MURPHY of Florida, Mr. GOMEZ, Mr. HORSFORD, Ms. PLASKETT, Mr. MICHAEL F. DOYLE of Pennsylvania, Ms. MATSUI, Ms. BONAMICI, Ms. BROWNLEY, Mr. CONNOLLY, Mr. WELCH, Ms. ESHOO, Mr. CRIST, Mr. LEVIN of Cali- fornia, and Mr. COHEN) introduced the following bill; which was referred to the Committee on Ways and Means A BILL To amend the Internal Revenue Code of 1986 to provide incentives for renewable energy and energy efficiency, and for other purposes. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 VerDate Sep 11 2014 19:57 Feb 14, 2021 Jkt 019200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H848.IH H848 pamtmann on DSKBC07HB2PROD with BILLS 2 •HR 848 IH SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 1 (a) SHORT TITLE.—This Act may be cited as the 2 ‘‘Growing Renewable Energy and Efficiency Now Act of 3 2021’’ or the ‘‘GREEN Act of 2021’’. 4 (b) AMENDMENT OF 1986 CODE.—Except as other- 5 wise expressly provided, whenever in this Act an amend- 6 ment or repeal is expressed in terms of an amendment 7 to, or repeal of, a section or other provision, the reference 8 shall be considered to be made to a section or other provi- 9 sion of the Internal Revenue Code of 1986. 10 (c) TABLE OF CONTENTS.—The table of contents for 11 this Act is as follows: 12 Sec. 1. Short title; table of contents. TITLE I—RENEWABLE ELECTRICITY AND REDUCING CARBON EMISSIONS Sec. 101. Extension of credit for electricity produced from certain renewable re- sources. Sec. 102. Extension and modification of energy credit. Sec. 103. Extension of credit for carbon oxide sequestration. Sec. 104. Elective payment for energy property and electricity produced from certain renewable resources, etc. Sec. 105. Green energy publicly traded partnerships. TITLE II—RENEWABLE FUELS Sec. 201. Biodiesel and renewable diesel. Sec. 202. Extension of excise tax credits relating to alternative fuels. Sec. 203. Extension of second generation biofuel incentives. TITLE III—GREEN ENERGY AND EFFICIENCY INCENTIVES FOR INDIVIDUALS Sec. 301. Extension, increase, and modifications of nonbusiness energy property credit. Sec. 302. Residential energy efficient property. Sec. 303. Energy efficient commercial buildings deduction. Sec. 304. Extension, increase, and modifications of new energy efficient home credit. Sec. 305. Modifications to income exclusion for conservation subsidies. TITLE IV—GREENING THE FLEET AND ALTERNATIVE VEHICLES VerDate Sep 11 2014 19:57 Feb 14, 2021 Jkt 019200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6211 E:\BILLS\H848.IH H848 pamtmann on DSKBC07HB2PROD with BILLS 3 •HR 848 IH Sec. 401. Modification of limitations on new qualified plug-in electric drive motor vehicle credit. Sec. 402. Credit for previously-owned qualified plug-in electric drive motor vehi- cles. Sec. 403. Credit for zero-emission heavy vehicles and zero-emission buses. Sec. 404. Qualified fuel cell motor vehicles. Sec. 405. Alternative fuel refueling property credit. Sec. 406. Modification of employer-provided fringe benefits for bicycle com- muting. TITLE V—INVESTMENT IN THE GREEN WORKFORCE Sec. 501. Extension of the advanced energy project credit. Sec. 502. Labor costs of installing mechanical insulation property. Sec. 503. Labor standards for certain energy jobs. TITLE VI—ENVIRONMENTAL JUSTICE Sec. 601. Qualified environmental justice program credit. TITLE VII—TREASURY REPORT ON DATA FROM THE GREENHOUSE GAS REPORTING PROGRAM Sec. 701. Report on Greenhouse Gas Reporting Program. TITLE I—RENEWABLE ELEC- 1 TRICITY AND REDUCING CAR- 2 BON EMISSIONS 3 SEC. 101. EXTENSION OF CREDIT FOR ELECTRICITY PRO- 4 DUCED FROM CERTAIN RENEWABLE RE- 5 SOURCES. 6 (a) IN GENERAL.—The following provisions of sec- 7 tion 45(d) are each amended by striking ‘‘January 1, 8 2022’’ each place it appears and inserting ‘‘January 1, 9 2027’’: 10 (1) Paragraph (2)(A). 11 (2) Paragraph (3)(A). 12 (3) Paragraph (6). 13 (4) Paragraph (7). 14 (5) Paragraph (9). 15 VerDate Sep 11 2014 19:57 Feb 14, 2021 Jkt 019200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H848.IH H848 pamtmann on DSKBC07HB2PROD with BILLS 4 •HR 848 IH (6) Paragraph (11)(B). 1 (b) EXTENSION OF ELECTION TO TREAT QUALIFIED 2 FACILITIES AS ENERGY PROPERTY.—Section 3 48(a)(5)(C)(ii) is amended by striking ‘‘January 1, 2022’’ 4 and inserting ‘‘January 1, 2027’’. 5 (c) APPLICATION OF EXTENSION TO WIND FACILI- 6 TIES.— 7 (1) IN GENERAL.—Section 45(d)(1) is amended 8 by striking ‘‘January 1, 2022’’ and inserting ‘‘Janu- 9 ary 1, 2027’’. 10 (2) APPLICATION OF PHASEOUT PERCENT- 11 AGE.— 12 (A) RENEWABLE ELECTRICITY PRODUC- 13 TION CREDIT.—Sections 45(b)(5)(D) is amend- 14 ed by striking ‘‘and before January 1, 2022,’’. 15 (B) ENERGY CREDIT.—Section 16 48(a)(5)(E)(iv) is amended by striking ‘‘and be- 17 fore January 1, 2022,’’. 18 (3) QUALIFIED OFFSHORE WIND FACILITIES 19 UNDER ENERGY CREDIT.—Section 48(a)(5)(F)(i) is 20 amended by striking ‘‘offshore wind facility—’’ and 21 all that follows and inserting the following: ‘‘offshore 22 wind facility, subparagraph (E) shall not apply.’’. 23 VerDate Sep 11 2014 19:57 Feb 14, 2021 Jkt 019200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H848.IH H848 pamtmann on DSKBC07HB2PROD with BILLS 5 •HR 848 IH (d) EFFECTIVE DATE.—The amendments made by 1 this section shall apply to facilities the construction of 2 which begins after December 31, 2021. 3 SEC. 102. EXTENSION AND MODIFICATION OF ENERGY 4 CREDIT. 5 (a) EXTENSION OF CREDIT.—The following provi- 6 sions of section 48 are each amended by striking ‘‘January 7 1, 2024’’ each place it appears and inserting ‘‘January 8 1, 2028’’: 9 (1) Subsection (a)(3)(A)(ii). 10 (2) Subsection (a)(3)(A)(vii). 11 (3) Subsection (c)(1)(D). 12 (4) Subsection (c)(2)(D). 13 (5) Subsection (c)(3)(A)(iv). 14 (6) Subsection (c)(4)(C). 15 (b) PHASEOUT OF CREDIT.—Section 48(a) is amend- 16 ed— 17 (1) by striking ‘‘after December 31, 2019, and 18 before January 1, 2023’’ in paragraphs (6)(A)(i) 19 and (7)(A)(i) and inserting ‘‘after December 31, 20 2019, and before January 1, 2021, or begins after 21 December 31, 2026, and before January 1, 2028’’, 22 (2) by striking ‘‘after December 31, 2022, and 23 before January 1, 2024’’ in paragraphs (6)(A)(ii) 24 VerDate Sep 11 2014 19:57 Feb 14, 2021 Jkt 019200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H848.IH H848 pamtmann on DSKBC07HB2PROD with BILLS 6 •HR 848 IH and (7)(A)(ii) and inserting ‘‘after December 31, 1 2027, and before January 1, 2029’’, 2 (3) by striking ‘‘before January 1, 2024’’ in 3 paragraphs (6)(A) (in the matter preceding clause 4 (i) thereof) and (6)(B) and inserting ‘‘before Janu- 5 ary 1, 2029’’, and 6 (4) by striking ‘‘before January 1, 2026’’ in 7 paragraphs (6)(B) and (7)(B) and inserting ‘‘before 8 January 1, 2031’’. 9 (c) 30 PERCENT CREDIT FOR SOLAR AND GEO- 10 THERMAL.— 11 (1) EXTENSION FOR SOLAR.—Section 12 48(a)(2)(A)(i)(II) is amended by striking ‘‘January 13 1, 2024’’ and inserting ‘‘January 1, 2029’’. 14 (2) APPLICATION TO GEOTHERMAL.— 15 (A) IN GENERAL.—Paragraphs 16 (2)(A)(i)(II), (6)(A), and (6)(B) of section 17 48(a) are each amended by striking ‘‘paragraph 18 (3)(A)(i)’’ and inserting ‘‘clause (i) or (iii) of 19 paragraph (3)(A)’’. 20 (B) CONFORMING AMENDMENT.—The 21 heading of section 48(a)(6) is amended by in- 22 serting ‘‘AND GEOTHERMAL’’ after ‘‘SOLAR EN- 23 ERGY’’. 24 VerDate Sep 11 2014 19:57 Feb 14, 2021 Jkt 019200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H848.IH H848 pamtmann on DSKBC07HB2PROD with BILLS 7 •HR 848 IH (d) ENERGY STORAGE TECHNOLOGIES; QUALIFIED 1 BIOGAS PROPERTY; EXTENSION OF WASTE ENERGY RE- 2 COVERY PROPERTY.— 3 (1) IN GENERAL.—Section 48(a)(3)(A) is 4 amended by striking ‘‘or’’ at the end of clause (vii), 5 and by adding at the end the following new clauses: 6 ‘‘(viii) energy storage technology, or 7 ‘‘(ix) qualified biogas property,’’. 8 (2) APPLICATION OF 30 PERCENT CREDIT.— 9 Section 48(a)(2)(A)(i) is amended by striking ‘‘and’’ 10 at the end of subclauses (IV) and (V) and adding at 11 the end the following new subclauses: 12 ‘‘(VI) energy storage technology, 13 and 14 ‘‘(VII) qualified biogas property, 15 and’’. 16 (3) APPLICATION OF PHASEOUT.—Section 17 48(a)(7) is amended by inserting ‘‘energy storage 18 technology, qualified biogas property,’’ after ‘‘waste 19 energy recovery property,’’. 20 (4) DEFINITIONS.—Section 48(c) is amended 21 by adding at the end the following new paragraphs: 22 ‘‘(6) ENERGY STORAGE TECHNOLOGY.— 23 ‘‘(A) IN GENERAL.—The term ‘energy 24 storage technology’ means equipment (other 25 VerDate Sep 11 2014 19:57 Feb 14, 2021 Jkt 019200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H848.IH H848 pamtmann on DSKBC07HB2PROD with BILLS 8 •HR 848 IH than equipment primarily used in the transpor- 1 tation of goods or individuals and not for the 2 production of electricity) which— 3 ‘‘(i) uses batteries, compressed air, 4 pumped hydropower, hydrogen storage (in- 5 cluding hydrolysis and electrolysis), ther- 6 mal energy storage, regenerative fuel cells, 7 flywheels, capacitors, superconducting 8 magnets, or other technologies identified 9 by the Secretary, after consultation with 10 the Secretary of Energy, to store energy 11 for conversion to electricity and has a ca- 12 pacity of not less than 5 kilowatt hours, or 13 ‘‘(ii) stores thermal energy to heat or 14 cool (or provide hot water for use in) a 15 structure (other than for use in a swim- 16 ming pool). 17 ‘‘(B) TERMINATION.—The term ‘energy 18 storage technology’ shall not include any prop- 19 erty the construction of which does not begin 20 before January 1, 2029. 21 ‘‘(7) QUALIFIED BIOGAS PROPERTY.— 22 ‘‘(A) IN GENERAL.—The term ‘qualified 23 biogas property’ means property comprising a 24 system which— 25 VerDate Sep 11 2014 19:57 Feb 14, 2021 Jkt 019200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\H848.IH H848 pamtmann on DSKBC07HB2PROD with BILLS 9 •HR 848 IH ‘‘(i) converts biomass (as defined in 1 section 45K(c)(3)) into a gas which— 2 ‘‘(I) consists of not less than 52 3 percent methane, or 4 ‘‘(II) is concentrated by such sys- 5 tem into a gas which consists of not 6 less than 52 percent methane, and 7 ‘‘(ii) captures such gas for productive 8 use. 9 ‘‘(B) INCLUSION OF CLEANING AND CON- 10 DITIONING PROPERTY.—The term ‘qualified 11 biogas property’ includes any property which is 12 part of such system which cleans or conditions 13 such gas. 14 ‘‘(C) TERMINATION.—The term ‘qualified 15 biogas property’ shall not include any property 16 the construction of which does not begin before 17 January 1, 2029.’’. 18 (5) DENIAL OF DOUBLE BENEFIT FOR QUALI- 19 FIED BIOGAS PROPERTY.—Section 45(e) is amended 20 by adding at the end the following new paragraph: 21 ‘‘(12) COORDINATION WITH ENERGY CREDIT 22 FOR QUALIFIED BIOGAS PROPERTY.—The term 23 ‘qualified facility’ shall not include any facility which 24 produces electricity from gas produced by qualified 25 VerDate Sep 11 2014 19:57 Feb 14, 2021 Jkt 019200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\H848.IH H848 pamtmann on DSKBC07HB2PROD with BILLS 10 •HR 848 IH biogas property (as defined in section 48(c)(7)) if a 1 credit is determined under section 48 with respect to 2 such property for the taxable year or any prior tax- 3 able year.’’. 4 (6) EXTENSION OF WASTE ENERGY RECOVERY 5 PROPERTY.—Section 48(c)(5)(D) is amended by 6 striking ‘‘January 1, 2024’’ and inserting ‘‘January 7 1, 2029’’. 8 (e) FUEL CELLS USING ELECTROMECHANICAL 9 PROCESSES.— 10 (1) IN GENERAL.—Section 48(c)(1) is amend- 11 ed— 12 (A) in subparagraph (A)(i)— 13 (i) by inserting ‘‘or electromechanical’’ 14 after ‘‘electrochemical’’, and 15 (ii) by inserting ‘‘(1 kilowatts in the 16 case of a fuel cell power plant with a linear 17 generator assembly)’’ after ‘‘0.5 kilowatt’’, 18 and 19 (B) in subparagraph (C)— 20 (i) by inserting ‘‘, or linear generator 21 assembly,’’ after ‘‘a fuel cell stack assem- 22 bly’’, and 23 (ii) by inserting ‘‘or 24 electromechanical’’ after ‘‘electrochemical’’. 25 VerDate Sep 11 2014 19:57 Feb 14, 2021 Jkt 019200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\H848.IH H848 pamtmann on DSKBC07HB2PROD with BILLS 11 •HR 848 IH (2) LINEAR GENERATOR ASSEMBLY LIMITA- 1 TION.—Section 48(c)(1) is amended by redesig- 2 nating subparagraph (D) as subparagraph (E) and 3 by inserting after subparagraph (C) the following 4 new subparagraph: 5 ‘‘(D) LINEAR GENERATOR ASSEMBLY.— 6 The term ‘linear generator assembly’ does not 7 include any assembly which contains rotating 8 parts.’’. 9 (f) EFFECTIVE DATE.—The amendments made by 10 this section shall apply to periods after December 31, 11 2021, under rules similar to the rules of section 48(m) 12 as in effect on the day before the date of the enactment 13 of the Revenue Reconciliation Act of 1990. 14 SEC. 103. EXTENSION OF CREDIT FOR CARBON OXIDE SE- 15 QUESTRATION. 16 (a) IN GENERAL.—Section 45Q(d)(1) is amended by 17 striking ‘‘January 1, 2026’’ and inserting ‘‘January 1, 18 2027’’. 19 (b) EFFECTIVE DATE.—The amendment made by 20 this section applies to facilities the construction of which 21 begins after December 31, 2025. 22 VerDate Sep 11 2014 19:57 Feb 14, 2021 Jkt 019200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\H848.IH H848 pamtmann on DSKBC07HB2PROD with BILLS 12 •HR 848 IH SEC. 104. ELECTIVE PAYMENT FOR ENERGY PROPERTY 1 AND ELECTRICITY PRODUCED FROM CER- 2 TAIN RENEWABLE RESOURCES, ETC. 3 (a) IN GENERAL.—Subchapter B of chapter 65 is 4 amended by adding at the end the following new section: 5 ‘‘SEC. 6431. ELECTIVE PAYMENT FOR ENERGY PROPERTY, 6 ELECTRICITY PRODUCED FROM CERTAIN RE- 7 NEWABLE RESOURCES, ETC, AND CARBON 8 OXIDE SEQUESTRATION. 9 ‘‘(a) ENERGY PROPERTY.—In the case of a taxpayer 10 making an election (at such time and in such manner as 11 the Secretary may provide) under this section with respect 12 to any portion of an applicable credit, such taxpayer shall 13 be treated as making a payment against the tax imposed 14 by subtitle A for the taxable year equal to— 15 ‘‘(1) in the case of an Indian tribal government, 16 the amount of such portion, and 17 ‘‘(2) in [Text truncated for display. Full text available on Congress.gov.]