[Pages S1770-S1771]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

  SA 525. Mr. REID submitted an amendment intended to be proposed to 
amendment SA 98 proposed by Mr. Inouye (for himself and Mr. Baucus) to 
the bill H.R. 1, making supplemental appropriations for job 
preservation and creation, infrastructure investment, energy efficiency 
and science, assistance to the unemployed, and State and local fiscal 
stabilization, for fiscal year ending September 30, 2009, and for other 
purposes; which was ordered to lie on the table; as follows:

       On page 76, line 14, strike after ``That none'' and all 
     that follows through ``project'' on line 25 and insert ``That 
     not less than $25,000,000 shall be available for and 
     distributed equally among the members of an interagency 
     working group including the Secretary of Energy, the 
     Secretary of Interior, and heads of other applicable agencies 
     for the purposes of enhancing the processing of permit 
     applications for renewable energy projects and related 
     transmission facilities on public land''.

       On page 88, line 19, insert ``and new or significantly 
     improved'' after ``commercial''.

       On page 90, between lines 14 and 15, insert the following:

     SEC. 4__. RENEWABLE ENERGY.

       (a) In General.--Section 365 of the Energy Policy Act of 
     2005 (42 U.S.C. 15924) is amended by adding at the end the 
     following:
       ``(k) Pilot Project Office to Improve Federal Permit 
     Coordination for Renewable Energy.--
       ``(1) Definition of renewable energy.--In this subsection, 
     the term `renewable energy' means energy derived from a wind 
     or solar source.
       ``(2) Field offices.--As part of the Pilot Project, the 
     Secretary shall designate 1 field office of the Bureau of 
     Land Management in each of the following States to serve as 
     Renewable Energy Pilot Project Offices for coordination of 
     Federal permits for renewable energy projects on Federal 
     land:
       ``(A) Arizona.
       ``(B) California.
       ``(C) New Mexico.
       ``(D) Nevada.
       ``(E) Montana.
       ``(3) Memorandum of understanding.--
       ``(A) In general.--Not later than 90 days after the date of 
     enactment of this subsection, the Secretary shall enter into 
     an amended memorandum of understanding under subsection (b) 
     to provide for the inclusion of the additional Renewable 
     Energy Pilot Project Offices in the Pilot Project.
       ``(B) Signatures by governors.--The Secretary may request 
     that the Governors of each of the States described in 
     paragraph (2) be signatories to the amended memorandum of 
     understanding.
       ``(C) Designation of qualified staff.--Not later than 30 
     days after the date of the signing of the amended memorandum 
     of understanding, all Federal signatory parties shall, if 
     appropriate, assign to each Renewable Energy Pilot Project 
     Offices designated under paragraph (2) an employee described 
     in subsection (c) to carry out duties described in that 
     subsection.
       ``(D) Additional personnel.--The Secretary shall assign to 
     each Renewable Energy Pilot Project Office additional 
     personnel under subsection (f).''.
       (b) Permit Processing Improvement Fund.--Section 35(c)(3) 
     of the Mineral Leasing Act (30 U.S.C. 191(c)(3)) is amended--
       (1) by striking ``use authorizations'' and inserting ``and 
     renewable energy use authorizations''; and
       (2) by striking ``section 365(d)'' and inserting 
     ``subsections (d) and (k)(2) of section 365''.

     SEC. 4__. MAXIMUM FUNDING AMOUNT FOR THIRD-PARTY FINANCE.

       Section 1222 of the Energy Policy Act of 2005 (42 U.S.C. 
     16421) is amended by striking subsection (g) and inserting 
     the following:
       ``(g) Maximum Funding Amount.--The Secretary shall not 
     accept and use more than

[[Page S1771]]

     $2,500,000,000 under subsection (c)(1) for the period of 
     fiscal years 2009 through 2018.''.

       On page 570, between lines 8 and 9, insert the following:

     SEC. 1903. GRANTS FOR SPECIFIED ENERGY PROPERTY IN LIEU OF 
                   TAX CREDITS.

       (a) Grants.--
       (1) In general.--Upon application, the Secretary of Energy 
     shall, within 60 days of the application and subject to the 
     requirements of this section, provide a grant to each person 
     who places in service specified energy property during 2009 
     or 2010 to reimburse such person for a portion of the expense 
     of such facility as provided in subsection (b).
       (2) Special rule for utility-scale solar and geothermal 
     property.--
       (A) In general.--In the case of any specified energy 
     property which is a part of a utility-scale solar or 
     geothermal project, paragraph (1) shall be applied by 
     substituting ``2009, 2010, 2011, or 2012'' for ``2009 or 
     2010''.
       (B) Utility-scale solar or geothermal project.--For 
     purposes of this section, the term ``utility-scale solar or 
     geothermal project'' means any project which--
       (i)(I) uses solar energy for a purpose described in clause 
     (i) or (ii) of section 48(a)(3)(A) of the Internal Revenue 
     Code of 1986, or
       (II) produces, distributes, or uses energy derived from 
     geothermal deposits (within the meaning of section 613(e)(2) 
     of such Code), and
       (ii) has a nameplate capacity rating which is not less 
     than--

       (I) 25 megawatts electrical, or
       (II) 10 megawatts thermal.

       (b) Grant Amount.--
       (1) In general.--The amount of the grant under subsection 
     (a) with respect to any specified energy property shall be 
     the applicable percentage of the basis of such facility.
       (2) Applicable percentage.--For purposes of paragraph (1), 
     the term ``applicable percentage'' means--
       (A) 30 percent in the case of any property described in 
     paragraphs (1) through (4) of subsection (c), and
       (B) 10 percent in the case of any other property.
       (3) Dollar limitations.--In the case of property described 
     in paragraph (2), (6), or (7) of subsection (c), the amount 
     of any grant under this section with respect to such property 
     shall not exceed the limitation described in section 
     48(c)(1)(B), 48(c)(2)(B), or 48(c)(3)(B) of the Internal 
     Revenue Code of 1986, respectively, with respect to such 
     property.
       (c) Specified Energy Property.--For purposes of this 
     section, the term ``specified energy property'' means any of 
     the following:
       (1) Qualified facilities.--Any facility described in 
     paragraph (1), (2), (3), (4), (6), (7), (9), or (11) of 
     section 45(d) of the Internal Revenue Code of 1986.
       (2) Qualified fuel cell property.--Any qualified fuel cell 
     property (as defined in section 48(c)(1) of such Code).
       (3) Solar property.--Any property described in clause (i) 
     or (ii) of section 48(a)(3)(A) of such Code.
       (4) Qualified small wind energy property.--Any qualified 
     small wind energy property (as defined in section 48(c)(4) of 
     such Code).
       (5) Geothermal property.--Any property described in clause 
     (iii) of section 48(a)(3)(A) of such Code.
       (6) Qualified microturbine property.--Any qualified 
     microturbine property (as defined in section 48(c)(2) of such 
     Code).
       (7) Combined heat and power system property.--Any combined 
     heat and power system property (as defined in section 
     48(c)(3) of such Code).
       (8) Geothermal heatpump property.--Any property described 
     in clause (vii) of section 48(a)(3)(A) of such Code.
       (d) Application of Certain Rules.--In making grants under 
     this section, the Secretary of Energy shall apply rules 
     similar to the rules of section 50 of the Internal Revenue 
     Code of 1986. In applying such rules, if the facility is 
     disposed of, or otherwise ceases to be a qualified renewable 
     energy facility, the Secretary of Energy shall provide for 
     the recapture of the appropriate percentage of the grant 
     amount in such manner as the Secretary of Energy determines 
     appropriate.
       (e) Exception for Certain Non-Taxpayers.--The Secretary of 
     Energy shall not make any grant under this section to any 
     Federal, State, or local government (or any political 
     subdivision, agency, or instrumentality thereof) or any 
     organization described in section 501(c) of the Internal 
     Revenue Code of 1986 and exempt from tax under section 501(a) 
     of such Code.
       (f) Definitions.--Terms used in this section which are also 
     used in section 45 or 48 of the Internal Revenue Code of 1986 
     shall have the same meaning for purposes of this section as 
     when used in such section 45 or 48. Any reference in this 
     section to the Secretary of the Treasury shall be treated as 
     including the Secretary's delegate.
       (g) Coordination Between Departments of Treasury and 
     Energy.--The Secretary of the Treasury shall provide the 
     Secretary of Energy with such technical assistance as the 
     Secretary of Energy may require in carrying out this section. 
     The Secretary of Energy shall provide the Secretary of the 
     Treasury with such information as the Secretary of the 
     Treasury may require in carrying out the amendment made by 
     section 1604.
       (h) Appropriations.--There is hereby appropriated to the 
     Secretary of Energy such sums as may be necessary to carry 
     out this section.
       (i) Termination.--The Secretary of Energy shall not make 
     any grant to any person under this section unless the 
     application of such person for such grant is received before 
     January 1, 2013.
       (j) Coordination With Renewable Energy Grants.--Section 48 
     is amended by adding at the end the following new subsection:
       ``(d) Coordination With Department of Energy Grants.--In 
     the case of any property with respect to which the Secretary 
     of Energy makes a grant under section 1903 of the American 
     Recovery and Reinvestment Tax Act of 2009--
       ``(1) Denial of production and investment credits.--No 
     credit shall be determined under this section or section 45 
     with respect to such property for the taxable year in which 
     such grant is made or any subsequent taxable year.
       ``(2) Recapture of credits for progress expenditures made 
     before grant.--If a credit was determined under this section 
     with respect to such property for any taxable year ending 
     before such grant is made--
       ``(A) the tax imposed under subtitle A on the taxpayer for 
     the taxable year in which such grant is made shall be 
     increased by so much of such credit as was allowed under 
     section 38,
       ``(B) the general business carryforwards under section 39 
     shall be adjusted so as to recapture the portion of such 
     credit which was not so allowed, and
       ``(C) the amount of such grant shall be determined without 
     regard to any reduction in the basis of such property by 
     reason of such credit.
       ``(3) Treatment of grants.--Any such grant shall--
       ``(A) not be includible in the gross income of the 
     taxpayer, but
       ``(B) shall be taken into account in determining the basis 
     of the property to which such grant relates, except that the 
     basis of such property shall be reduced under section 50(c) 
     in the same manner as a credit allowed under subsection 
     (a).''.
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