Financing Our Energy Future Act

II 117TH CONGRESS 1ST SESSION S. 1034 To amend the Internal Revenue Code of 1986 to extend the publicly traded partnership ownership structure to energy power generation projects and transportation fuels, and for other purposes. IN THE SENATE OF THE UNITED STATES MARCH 25, 2021 Mr. COONS (for himself, Mr. MORAN, Mr. KING, Mr. CARPER, Ms. ERNST, Ms. COLLINS, Mr. WARNER, Mr. BRAUN, Ms. STABENOW, Mr. CRAPO, and Mr. BENNET) introduced the following bill; which was read twice and referred to the Committee on Finance A BILL To amend the Internal Revenue Code of 1986 to extend the publicly traded partnership ownership structure to energy power generation projects and transportation fuels, 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 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Financing Our Energy 4 Future Act’’. 5 VerDate Sep 11 2014 19:50 Apr 21, 2021 Jkt 019200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S1034.IS S1034 pamtmann on DSKBC07HB2PROD with BILLS 2 •S 1034 IS SEC. 2. GREEN ENERGY PUBLICLY TRADED PARTNER- 1 SHIPS. 2 (a) IN GENERAL.—Section 7704(d)(1)(E) of the In- 3 ternal Revenue Code of 1986 is amended— 4 (1) by striking ‘‘income and gains derived from 5 the exploration’’ and inserting ‘‘income and gains 6 derived from— 7 ‘‘(i) the exploration’’, 8 (2) by inserting ‘‘or’’ before ‘‘industrial 9 source’’, and 10 (3) by striking ‘‘, or the transportation or stor- 11 age’’ and all that follows and inserting the following: 12 ‘‘(ii) the generation of electric power 13 or thermal energy exclusively using any 14 qualified energy resource (as defined in 15 section 45(c)(1)), 16 ‘‘(iii) the operation of energy property 17 (as defined in section 48(a)(3), determined 18 without regard to any date by which the 19 construction of the facility is required to 20 begin), 21 ‘‘(iv) in the case of a facility described 22 in paragraph (3) or (7) of section 45(d) 23 (determined without regard to any placed 24 in service date or date by which construc- 25 tion of the facility is required to begin), 26 VerDate Sep 11 2014 19:50 Apr 21, 2021 Jkt 019200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S1034.IS S1034 pamtmann on DSKBC07HB2PROD with BILLS 3 •S 1034 IS the accepting or processing of open-loop 1 biomass or municipal solid waste, 2 ‘‘(v) the storage of electric power or 3 thermal energy exclusively using equipment 4 (other than equipment primarily used in 5 the transportation of goods or individuals 6 and not for the production of electricity) 7 which— 8 ‘‘(I) uses batteries, compressed 9 air, pumped hydropower, hydrogen 10 storage (including hydrolysis and elec- 11 trolysis), thermal energy storage, re- 12 generative fuel cells, flywheels, capaci- 13 tors, superconducting magnets, or 14 other technologies identified by the 15 Secretary, after consultation with the 16 Secretary of Energy, to store energy 17 for conversion to electricity and has a 18 capacity of not less than 5 kilowatt 19 hours, or 20 ‘‘(II) stores thermal energy to 21 heat or cool (or provide hot water for 22 use in) a structure (other than for use 23 in a swimming pool), 24 VerDate Sep 11 2014 19:50 Apr 21, 2021 Jkt 019200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S1034.IS S1034 pamtmann on DSKBC07HB2PROD with BILLS 4 •S 1034 IS ‘‘(vi) the generation, storage, or dis- 1 tribution of electric power or thermal en- 2 ergy exclusively using energy property that 3 is combined heat and power system prop- 4 erty (as defined in section 48(c)(3), deter- 5 mined without regard to subparagraph 6 (B)(iii) thereof and without regard to any 7 date by which the construction of the facil- 8 ity is required to begin), 9 ‘‘(vii) the transportation or storage of 10 any fuel described in subsection (b), (c), 11 (d), or (e) of section 6426, 12 ‘‘(viii) the conversion of renewable bio- 13 mass (as defined in subparagraph (I) of 14 section 211(o)(1) of the Clean Air Act (as 15 in effect on the date of the enactment of 16 this clause)) into renewable fuel (as de- 17 fined in subparagraph (J) of such section 18 as so in effect), or the storage or transpor- 19 tation of such fuel, 20 ‘‘(ix) the production, storage, or 21 transportation of any fuel which— 22 ‘‘(I) uses as its primary feedstock 23 carbon oxides captured from an an- 24 thropogenic source or the atmosphere, 25 VerDate Sep 11 2014 19:50 Apr 21, 2021 Jkt 019200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S1034.IS S1034 pamtmann on DSKBC07HB2PROD with BILLS 5 •S 1034 IS ‘‘(II) does not use as its primary 1 feedstock carbon oxide which is delib- 2 erately released from naturally occur- 3 ring subsurface springs, and 4 ‘‘(III) is determined by the Sec- 5 retary, after consultation with the 6 Secretary of Energy and the Adminis- 7 trator of the Environmental Protec- 8 tion Agency, to achieve a reduction of 9 not less than a 60 percent in lifecycle 10 greenhouse gas emissions (as defined 11 in section 211(o)(1)(H) of the Clean 12 Air Act, as in effect on the date of the 13 enactment of this clause) compared to 14 baseline lifecycle greenhouse gas emis- 15 sions (as defined in section 16 211(o)(1)(C) of such Act, as so in ef- 17 fect), 18 ‘‘(x) the generation of electric power 19 from a qualifying gasification project (as 20 defined in section 48B(c)(1) without re- 21 gard to subparagraph (C)) that is de- 22 scribed in section 48B(d)(1)(B), 23 ‘‘(xi) in the case of a qualified facility 24 (as defined in section 45Q(d), without re- 25 VerDate Sep 11 2014 19:50 Apr 21, 2021 Jkt 019200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\S1034.IS S1034 pamtmann on DSKBC07HB2PROD with BILLS 6 •S 1034 IS gard to any date by which construction of 1 the facility is required to begin) not less 2 than 50 percent (30 percent in the case of 3 a facility placed in service before January 4 1, 2022) of the total carbon oxide produc- 5 tion of which is qualified carbon oxide (as 6 defined in section 45Q(c))— 7 ‘‘(I) the generation, availability 8 for such generation, or storage of elec- 9 tric power at such facility, or 10 ‘‘(II) the capture of carbon diox- 11 ide by such facility, 12 ‘‘(xii) the generation of electric power 13 or energy from any advanced nuclear facil- 14 ity (as defined in section 45J(d)(2), deter- 15 mined by substituting ‘December 31, 2018’ 16 for ‘December 31, 1993’), or 17 ‘‘(xiii) the production, storage, or 18 transportation of any renewable chemical 19 which— 20 ‘‘(I) is produced in the United 21 States (or in a territory or possession 22 of the United States) from renewable 23 biomass, 24 VerDate Sep 11 2014 19:50 Apr 21, 2021 Jkt 019200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\S1034.IS S1034 pamtmann on DSKBC07HB2PROD with BILLS 7 •S 1034 IS ‘‘(II) is not less than 95 percent 1 biobased content, 2 ‘‘(III) is not sold or used for the 3 production of any food, feed, fuel, or 4 pharmaceuticals, 5 ‘‘(IV) is approved to use the 6 USDA Certified Biobased Product 7 label under section 9002(b) of the 8 Farm Security and Rural Investment 9 Act of 2002 (7 U.S.C. 8102(b)), and 10 ‘‘(V) is a chemical intermediate 11 (as such term is defined in section 12 3201.109 of title 7, Code of Federal 13 Regulations (or successor regula- 14 tions)),’’. 15 (b) EFFECTIVE DATE.—The amendments made by 16 this section shall apply to taxable years beginning after 17 December 31, 2021. 18 Æ VerDate Sep 11 2014 19:50 Apr 21, 2021 Jkt 019200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6301 E:\BILLS\S1034.IS S1034 pamtmann on DSKBC07HB2PROD with BILLS