SA 4429. Mr. ALEXANDER (for himself and Mr. Kyl) submitted an amendment intended to be proposed to amendment SA 4419 proposed by Mr. Ensign to the amendment SA 4387 submitted by Mr. Dodd (for himself and Mr. Shelby) to the bill H.R. 3221, moving the United States toward greater energy independence and security, developing innovative new technologies, reducing carbon emissions, creating green jobs, protecting consumers, increasing clean renewable energy production,
and modernizing our energy infrastructure, and to amend the Internal Revenue Code of 1986 to provide tax incentives for the production of renewable energy and energy conservation, as follows:

Beginning on page 2, line 14, strike all through page 6, line 13, and insert the following:
SEC. 811. EXTENSION AND MODIFICATION OF RENEWABLE ENERGY PRODUCTION TAX CREDIT.
(a) Extension of Credit.--Each of the following provisions of section 45(d) (relating to qualified facilities) is amended by striking ``January 1, 2009'' and inserting ``January 1, 2011'':
(1) Paragraph (1).
(2) Clauses (i) and (ii) of paragraph (2)(A).
(3) Clauses (i)(I) and (ii) of paragraph (3)(A).
(4) Paragraph (4).
(5) Paragraph (5).
(6) Paragraph (6).
(7) Paragraph (7).
(8) Paragraph (8).
(9) Subparagraphs (A) and (B) of paragraph (9).
(b) Production Credit for Electricity Produced From Marine Renewables.--
(1) IN GENERAL.--Paragraph (1) of section 45(c) (relating to resources) is amended by striking ``and'' at the end of subparagraph (G), by striking the period at the end of subparagraph (H) and inserting ``, and'', and by adding at the end the following new subparagraph:
``(I) marine and hydrokinetic renewable energy.''.
(2) MARINE RENEWABLES.--Subsection (c) of section 45 is amended by adding at the end the following new paragraph:
``(10) MARINE AND HYDROKINETIC RENEWABLE ENERGY.--
``(A) IN GENERAL.--The term `marine and hydrokinetic renewable energy' means energy derived from--
``(i) waves, tides, and currents in oceans, estuaries, and tidal areas,
``(ii) free flowing water in rivers, lakes, and streams,
``(iii) free flowing water in an irrigation system, canal, or other man-made channel, including projects that utilize nonmechanical structures to accelerate the flow of water for electric power production purposes, or
``(iv) differentials in ocean temperature (ocean thermal energy conversion).
``(B) EXCEPTIONS.--Such term shall not include any energy which is derived from any source which utilizes a dam, diversionary structure (except as provided in subparagraph (A)(iii)), or impoundment for electric power production purposes.''.
(3) DEFINITION OF FACILITY.--Subsection (d) of section 45 is amended by adding at the end the following new paragraph:
``(11) MARINE AND HYDROKINETIC RENEWABLE ENERGY FACILITIES.--In the case of a facility producing electricity from marine and hydrokinetic renewable energy, the term `qualified facility' means any facility owned by the taxpayer--
``(A) which has a nameplate capacity rating of at least 150 kilowatts, and
``(B) which is originally placed in service on or after the date of the enactment of this paragraph and before January 1, 2011.''.
(4) CREDIT RATE.--Subparagraph (A) of section 45(b)(4) is amended by striking ``or (9)'' and inserting ``(9), or (11)''.
(5) COORDINATION WITH SMALL IRRIGATION POWER.--Paragraph (5) of section 45(d), as amended by subsection (a), is amended by striking ``January 1, 2011'' and inserting ``the date of the enactment of paragraph (11)''.
(c) Sales of Electricity to Regulated Public Utilities Treated as Sales to Unrelated Persons.--Section 45(e)(4) (relating to related persons) is amended by adding at the end the following new sentence: ``A taxpayer shall be treated as selling electricity to an unrelated person if such electricity is sold to a regulated public utility (as defined in section 7701(a)(33).''.
(e) Reduction of Credit for Wind Energy.--Section 45(b)(4)(A) is amended by inserting ``(1),'' before ``(3)''.
(f) Trash Facility Clarification.--Paragraph (7) of section 45(d) is amended--
(1) by striking ``facility which burns'' and inserting ``facility (other than a facility described in paragraph (6)) which uses'', and
(2) by striking ``COMBUSTION''.
(g) Effective Dates.--
(1) EXTENSION.--The amendments made by subsection (a) shall apply to property originally placed in service after December 31, 2008.
(2) MODIFICATIONS.--The amendments made by subsections (b), (c), (d), and (e) shall apply to electricity produced and sold after the date of the enactment of this Act, in taxable years ending after such date.
(3) TRASH FACILITY CLARIFICATION.--The amendments made by subsection (f) shall apply to electricity produced and sold before, on, or after December 31, 2007.


(As printed in the Congressional Record for the Senate on Apr 4, 2008.)