Carbon Capture Modernization Act

II 116TH CONGRESS 1ST SESSION S. 407 To amend the Internal Revenue Code of 1986 to modify the qualifying advanced coal project credit, and for other purposes. IN THE SENATE OF THE UNITED STATES FEBRUARY 7, 2019 Mr. HOEVEN (for himself, Ms. SMITH, Mr. CRAMER, Mr. MANCHIN, Mr. BAR- RASSO, Mr. TESTER, Mr. GRAHAM, and Mr. DAINES) introduced the fol- lowing bill; which was read twice and referred to the Committee on Fi- nance A BILL To amend the Internal Revenue Code of 1986 to modify the qualifying advanced coal project credit, 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 ‘‘Carbon Capture Mod- 4 ernization Act’’. 5 SEC. 2. MODIFICATIONS OF QUALIFYING ADVANCED COAL 6 PROJECT CREDIT. 7 (a) SEQUESTRATION REQUIREMENT FOR CERTAIN 8 EQUIPMENT.—Section 48A(e)(1)(G) of the Internal Rev- 9 VerDate Sep 11 2014 04:38 Feb 16, 2019 Jkt 089200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S407.IS S407 kjohnson on DSK79L0C42 with BILLS 2 •S 407 IS enue Code of 1986 is amended by inserting ‘‘and 60 per- 1 cent in the case of an application for a reallocation of cred- 2 its under subsection (d)(4) with respect to an electrical 3 generating unit in existence on October 3, 2008’’ after 4 ‘‘under subsection (d)(4)’’. 5 (b) NAMEPLATE GENERATING CAPACITY REQUIRE- 6 MENT.—Section 48A(e)(1)(C) of such Code is amended by 7 striking ‘‘400 megawatts’’ and inserting ‘‘200 8 megawatts’’. 9 (c) ADVANCED COAL-BASED GENERATION TECH- 10 NOLOGY REQUIREMENTS.— 11 (1) IN GENERAL.—Section 48A(f)(1) of such 12 Code is amended by striking ‘‘generation technology 13 if—’’ and all that follows through ‘‘the unit is de- 14 signed’’ and inserting ‘‘generation technology if the 15 unit is designed’’. 16 (2) CONFORMING AMENDMENTS.—Section 17 48A(f) is amended— 18 (A) by striking all that precedes ‘‘the pur- 19 pose of this section’’ and inserting the fol- 20 lowing: 21 ‘‘(f) ADVANCED COAL-BASED GENERATION TECH- 22 NOLOGY.—For’’, 23 VerDate Sep 11 2014 04:38 Feb 16, 2019 Jkt 089200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S407.IS S407 kjohnson on DSK79L0C42 with BILLS 3 •S 407 IS (B) by striking ‘‘in subparagraph (B)’’ in 1 the second sentence and inserting ‘‘in this sub- 2 section’’, and 3 (C) by striking paragraphs (2) and (3). 4 (d) PERFORMANCE REQUIREMENTS IN CASE OF 5 BEST AVAILABLE CONTROL TECHNOLOGY.—Section 6 48A(f) of such Code, as amended by this Act, is amended 7 by adding at the end the following: ‘‘In the case of a ret- 8 rofit of a unit which has undergone a best available control 9 technology analysis after August 8, 2005, with respect to 10 the removal or emissions of any pollutant which is SO2 11 or NOx, the removal or emissions design level with respect 12 to such pollutant shall be the level determined in such 13 analysis.’’. 14 (e) CLARIFICATION OF REALLOCATION AUTHOR- 15 ITY.—Section 48A(d)(4) of the Internal Revenue Code of 16 1986 is amended— 17 (1) in subparagraph (A)— 18 (A) by striking ‘‘Not later than 6 years 19 after the date of enactment of this section, the’’ 20 and inserting ‘‘The’’, and 21 (B) by inserting ‘‘and every 6 months 22 thereafter until all credits available under this 23 section have been allowed’’ after ‘‘the date 24 VerDate Sep 11 2014 04:38 Feb 16, 2019 Jkt 089200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S407.IS S407 kjohnson on DSK79L0C42 with BILLS 4 •S 407 IS which is 6 years after the date of enactment of 1 this section’’, 2 (2) in subparagraph (B)— 3 (A) by striking ‘‘may reallocate credits 4 available under clauses (i) and (ii) of paragraph 5 (3)(B)’’ and inserting ‘‘shall reallocate credits 6 remaining available under paragraph (3)’’, 7 (B) by striking ‘‘or’’ at the end of clause 8 (i), and 9 (C) by striking clause (ii) and inserting the 10 following: 11 ‘‘(ii) any applicant for certification 12 which submitted an accepted application 13 has subsequently failed to satisfy the re- 14 quirements under paragraph (2)(D), or 15 ‘‘(iii) any certification made pursuant 16 to paragraph (2) has been revoked pursu- 17 ant to paragraph (2)(E).’’, and 18 (3) in subparagraph (C)— 19 (A) by striking ‘‘clause (i) or (ii) of para- 20 graph (3)(B)’’ and inserting ‘‘paragraph (3)’’, 21 (B) by striking ‘‘is authorized to’’ and in- 22 serting ‘‘shall’’, and 23 (C) by striking ‘‘an additional program’’ 24 and inserting ‘‘additional programs’’. 25 VerDate Sep 11 2014 04:38 Feb 16, 2019 Jkt 089200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S407.IS S407 kjohnson on DSK79L0C42 with BILLS 5 •S 407 IS (f) EFFECTIVE DATE.— 1 (1) IN GENERAL.—Except as provided in para- 2 graph (2), the amendments made by this section 3 shall apply to allocations and reallocations after the 4 date of the enactment of this Act. 5 (2) REALLOCATION.—The amendments made 6 by subsection (e) shall apply to credits remaining 7 available under section 48A(d)(3) of the Internal 8 Revenue Code of 1986 on the date of the enactment 9 of this Act. 10 Æ VerDate Sep 11 2014 04:38 Feb 16, 2019 Jkt 089200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6301 E:\BILLS\S407.IS S407 kjohnson on DSK79L0C42 with BILLS