GREEN Act of 2020

I 116TH CONGRESS 2D SESSION H. R. 7330 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 JUNE 25, 2020 Mr. THOMPSON of California (for himself, Mr. NEAL, Mr. LEWIS, Mr. DOG- GETT, Mr. LARSON of Connecticut, Mr. BLUMENAUER, Mr. KIND, Mr. PASCRELL, Mr. DANNY K. DAVIS of Illinois, Ms. SA´NCHEZ, Mr. HIGGINS of New York, Ms. SEWELL of Alabama, Ms. DELBENE, Ms. JUDY CHU of California, Ms. MOORE, 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, Mr. LEVIN of California, Mr. LOWENTHAL, Mr. CRIST, Mr. TONKO, Mr. COHEN, Ms. KUSTER of New Hampshire, Mr. ROUDA, Ms. BONAMICI, Ms. BROWNLEY of California, Ms. HAALAND, Mr. MICHAEL F. DOYLE of Pennsylvania, Mr. THOMPSON of Mississippi, Mr. CONNOLLY, Mr. HASTINGS, Mr. WELCH, Ms. ESHOO, Mr. NEGUSE, Mr. SERRANO, Mr. CARBAJAL, Ms. MATSUI, Mr. TAKANO, Mrs. HAYES, and Mr. SOTO) in- troduced 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 01:07 Aug 01, 2020 Jkt 099200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H7330.IH H7330 pamtmann on DSKBC07HB2PROD with BILLS 2 •HR 7330 IH SECTION 1. SHORT TITLE; ETC. 1 (a) SHORT TITLE.—This Act may be cited as the 2 ‘‘Growing Renewable Energy and Efficiency Now Act of 3 2020’’ or the ‘‘GREEN Act of 2020’’. 4 (b) TABLE OF CONTENTS.—The table of contents of 5 this Act is as follows: 6 Sec. 1. Short title; etc. 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. Extension of energy credit for offshore wind facilities. Sec. 106. 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 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 VerDate Sep 11 2014 01:07 Aug 01, 2020 Jkt 099200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6211 E:\BILLS\H7330.IH H7330 pamtmann on DSKBC07HB2PROD with BILLS 3 •HR 7330 IH 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. (c) AMENDMENT OF 1986 CODE.—Except as other- 1 wise expressly provided, whenever in this Act an amend- 2 ment or repeal is expressed in terms of an amendment 3 to, or repeal of, a section or other provision, the reference 4 shall be considered to be made to a section or other provi- 5 sion of the Internal Revenue Code of 1986. 6 TITLE I—RENEWABLE ELEC- 7 TRICITY AND REDUCING CAR- 8 BON EMISSIONS 9 SEC. 101. EXTENSION OF CREDIT FOR ELECTRICITY PRO- 10 DUCED FROM CERTAIN RENEWABLE RE- 11 SOURCES. 12 (a) IN GENERAL.—The following provisions of sec- 13 tion 45(d) are each amended by striking ‘‘January 1, 14 2021’’ each place it appears and inserting ‘‘January 1, 15 2026’’: 16 (1) Paragraph (2)(A). 17 (2) Paragraph (3)(A). 18 (3) Paragraph (6). 19 (4) Paragraph (7). 20 VerDate Sep 11 2014 01:07 Aug 01, 2020 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H7330.IH H7330 pamtmann on DSKBC07HB2PROD with BILLS 4 •HR 7330 IH (5) Paragraph (9). 1 (6) Paragraph (11)(B). 2 (b) EXTENSION OF ELECTION TO TREAT QUALIFIED 3 FACILITIES AS ENERGY PROPERTY.—Section 4 48(a)(5)(C)(ii) is amended by striking ‘‘January 1, 2021’’ 5 and inserting ‘‘January 1, 2026’’. 6 (c) APPLICATION OF EXTENSION TO WIND FACILI- 7 TIES.— 8 (1) IN GENERAL.—Section 45(d)(1) is amended 9 by striking ‘‘January 1, 2021’’ and inserting ‘‘Janu- 10 ary 1, 2026’’. 11 (2) APPLICATION OF PHASEOUT PERCENT- 12 AGE.— 13 (A) RENEWABLE ELECTRICITY PRODUC- 14 TION CREDIT.—Sections 45(b)(5)(D) is amend- 15 ed by striking ‘‘and before January 1, 2021,’’. 16 (B) ENERGY CREDIT.—Section 17 48(a)(5)(E)(iv) is amended by striking ‘‘and be- 18 fore January 1, 2021,’’. 19 (d) EFFECTIVE DATE.—The amendments made by 20 this section shall apply to facilities the construction of 21 which begins after December 31, 2020. 22 VerDate Sep 11 2014 01:07 Aug 01, 2020 Jkt 099200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H7330.IH H7330 pamtmann on DSKBC07HB2PROD with BILLS 5 •HR 7330 IH SEC. 102. EXTENSION AND MODIFICATION OF ENERGY 1 CREDIT. 2 (a) EXTENSION OF CREDIT.—The following provi- 3 sions of section 48 are each amended by striking ‘‘January 4 1, 2022’’ each place it appears and inserting ‘‘January 5 1, 2027’’: 6 (1) Subsection (a)(3)(A)(ii). 7 (2) Subsection (a)(3)(A)(vii). 8 (3) Subsection (c)(1)(D). 9 (4) Subsection (c)(2)(D). 10 (5) Subsection (c)(3)(A)(iv). 11 (6) Subsection (c)(4)(C). 12 (b) PHASEOUT OF CREDIT.—Section 48(a) is amend- 13 ed— 14 (1) by striking ‘‘December 31, 2019’’ in para- 15 graphs (6)(A)(i) and (7)(A)(i) and inserting ‘‘De- 16 cember 31, 2025’’, 17 (2) by striking ‘‘December 31, 2020’’ in para- 18 graphs (6)(A)(ii) and (7)(A)(ii) and inserting ‘‘De- 19 cember 31, 2026’’, 20 (3) by striking ‘‘January 1, 2021’’ in para- 21 graphs (6)(A)(i) and (7)(A)(i) and inserting ‘‘Janu- 22 ary 1, 2027’’, 23 (4) by striking ‘‘January 1, 2022’’ each place 24 it appears in paragraphs (6)(A), (6)(B), and (7)(A) 25 and inserting ‘‘January 1, 2028’’, and 26 VerDate Sep 11 2014 01:07 Aug 01, 2020 Jkt 099200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H7330.IH H7330 pamtmann on DSKBC07HB2PROD with BILLS 6 •HR 7330 IH (5) by striking ‘‘January 1, 2024’’ in para- 1 graphs (6)(B) and (7)(B) and inserting ‘‘January 1, 2 2030’’. 3 (c) 30 PERCENT CREDIT FOR SOLAR AND GEO- 4 THERMAL.— 5 (1) EXTENSION FOR SOLAR.—Section 6 48(a)(2)(A)(i)(II) is amended by striking ‘‘January 7 1, 2022’’ and inserting ‘‘January 1, 2028’’. 8 (2) APPLICATION TO GEOTHERMAL.— 9 (A) IN GENERAL.—Paragraphs 10 (2)(A)(i)(II), (6)(A), and (6)(B) of section 11 48(a) are each amended by striking ‘‘paragraph 12 (3)(A)(i)’’ and inserting ‘‘clause (i) or (iii) of 13 paragraph (3)(A)’’. 14 (B) CONFORMING AMENDMENT.—The 15 heading of section 48(a)(6) is amended by in- 16 serting ‘‘AND GEOTHERMAL’’ after ‘‘SOLAR EN- 17 ERGY’’. 18 (d) ENERGY STORAGE TECHNOLOGIES; WASTE EN- 19 ERGY RECOVERY PROPERTY; QUALIFIED BIOGAS PROP- 20 ERTY.— 21 (1) IN GENERAL.—Section 48(a)(3)(A) is 22 amended by striking ‘‘or’’ at the end of clause (vi), 23 and by adding at the end the following new clauses: 24 ‘‘(viii) energy storage technology, 25 VerDate Sep 11 2014 01:07 Aug 01, 2020 Jkt 099200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H7330.IH H7330 pamtmann on DSKBC07HB2PROD with BILLS 7 •HR 7330 IH ‘‘(ix) waste energy recovery property, 1 or 2 ‘‘(x) qualified biogas property,’’. 3 (2) APPLICATION OF 30 PERCENT CREDIT.— 4 Section 48(a)(2)(A)(i) is amended by striking ‘‘and’’ 5 at the end of subclauses (III) and (IV) and adding 6 at the end the following new subclauses: 7 ‘‘(V) energy storage technology, 8 ‘‘(VI) waste energy recovery 9 property, and 10 ‘‘(VII) qualified biogas property, 11 and’’. 12 (3) APPLICATION OF PHASEOUT.—Section 13 48(a)(7) is amended— 14 (A) by inserting ‘‘energy storage tech- 15 nology, waste energy recovery property, quali- 16 fied biogas property,’’ after ‘‘qualified small 17 wind property,’’, and 18 (B) by striking ‘‘FIBER-OPTIC SOLAR, 19 QUALIFIED FUEL CELL, AND QUALIFIED SMALL 20 WIND’’ in the heading thereof and inserting 21 ‘‘CERTAIN OTHER’’. 22 (4) DEFINITIONS.—Section 48(c) is amended 23 by adding at the end the following new paragraphs: 24 ‘‘(5) ENERGY STORAGE TECHNOLOGY.— 25 VerDate Sep 11 2014 01:07 Aug 01, 2020 Jkt 099200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H7330.IH H7330 pamtmann on DSKBC07HB2PROD with BILLS 8 •HR 7330 IH ‘‘(A) IN GENERAL.—The term ‘energy 1 storage technology’ means equipment (other 2 than equipment primarily used in the transpor- 3 tation of goods or individuals and not for the 4 production of electricity) which— 5 ‘‘(i) uses batteries, compressed air, 6 pumped hydropower, hydrogen storage (in- 7 cluding hydrolysis and electrolysis), ther- 8 mal energy storage, regenerative fuel cells, 9 flywheels, capacitors, superconducting 10 magnets, or other technologies identified 11 by the Secretary, after consultation with 12 the Secretary of Energy, to store energy 13 for conversion to electricity and has a ca- 14 pacity of not less than 5 kilowatt hours, or 15 ‘‘(ii) stores thermal energy to heat or 16 cool (or provide hot water for use in) a 17 structure (other than for use in a swim- 18 ming pool). 19 ‘‘(B) TERMINATION.—The term ‘energy 20 storage technology’ shall not include any prop- 21 erty the construction of which does not begin 22 before January 1, 2028. 23 ‘‘(6) WASTE ENERGY RECOVERY PROPERTY.— 24 VerDate Sep 11 2014 01:07 Aug 01, 2020 Jkt 099200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\H7330.IH H7330 pamtmann on DSKBC07HB2PROD with BILLS 9 •HR 7330 IH ‘‘(A) IN GENERAL.—The term ‘waste en- 1 ergy recovery property’ means property that 2 generates electricity solely from heat from 3 buildings or equipment if the primary purpose 4 of such building or equipment is not the genera- 5 tion of electricity. 6 ‘‘(B) CAPACITY LIMITATION.—The term 7 ‘waste energy recovery property’ shall not in- 8 clude any property which has a capacity in ex- 9 cess of 50 megawatts. 10 ‘‘(C) NO DOUBLE BENEFIT.—Any waste 11 energy recovery property (determined without 12 regard to this subparagraph) which is part of a 13 system which is a combined heat and power sys- 14 tem property shall not be treated as waste en- 15 ergy recovery property for purposes of this sec- 16 tion unless the taxpayer elects to not treat such 17 system as a combined heat and power system 18 property for purposes of this section. 19 ‘‘(D) TERMINATION.—The term ‘waste en- 20 ergy recovery property’ shall not include any 21 property the construction of which does not 22 begin before January 1, 2028. 23 ‘‘(7) QUALIFIED BIOGAS PROPERTY.— 24 VerDate Sep 11 2014 01:07 Aug 01, 2020 Jkt 099200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\H7330.IH H7330 pamtmann on DSKBC07HB2PROD with BILLS 10 •HR 7330 IH ‘‘(A) IN GENERAL.—The term ‘qualified 1 biogas property’ means property comprising a 2 system which— 3 ‘‘(i) converts biomass (as defined in 4 section 45K(c)(3)) into a gas which— 5 ‘‘(I) consists of not less than 52 6 percent methane, or 7 ‘‘(II) is concentrated by such sys- 8 tem into a gas which consists of not 9 less than 52 percent methane, and 10 ‘‘(ii) captures such gas for productive 11 use. 12 ‘‘(B) INCLUSION OF CLEANING AND CON- 13 DITIONING PROPERTY.—The term ‘qualified 14 biogas property’ includes any property which is 15 part of such system which cleans or conditions 16 such gas. 17 ‘‘(C) TERMINATION.—The term ‘qualified 18 biogas property’ shall not include any property 19 the construction of which does not begin before 20 January 1, 2028.’’. 21 (5) DENIAL OF DOUBLE BENEFIT FOR QUALI- 22 FIED BIOGAS PROPERTY.—Section 45(e) is amended 23 by adding at the end the following new paragraph: 24 VerDate Sep 11 2014 01:07 Aug 01, 2020 Jkt 099200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\H7330.IH H7330 pamtmann on DSKBC07HB2PROD with BILLS 11 •HR 7330 IH ‘‘(12) COORDINATION WITH ENERGY CREDIT 1 FOR QUALIFIED BIOGAS PROPERTY.—The term 2 ‘qualified facility’ shall not include any facility which 3 produces electricity from gas produced by qualified 4 biogas property (as defined in section 48(c)(7)) if a 5 credit is determined under section 48 with respect to 6 such property for the taxable year or any prior tax- 7 able year.’’. 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 kilowatt 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 01:07 Aug 01, 2020 Jkt 099200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\H7330.IH H7330 pamtmann on DSKBC07HB2PROD with BILLS 12 •HR 7330 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 2020, 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) [Text truncated for display. Full text available on Congress.gov.]