EXTENSION AND MODIFICATION OF ALTERNATIVE FUEL CREDIT.

SEC. 204. EXTENSION AND MODIFICATION OF ALTERNATIVE FUEL CREDIT.(a) Extension.—(1) Alternative fuel credit.—Paragraph (4) of section 6426(d) (relating to alternative fuel credit) is amended by striking “September 30, 2009” and inserting “December 31, 2009”.(2) Alternative fuel mixture credit.—Paragraph (3) of section 6426(e) (relating to alternative fuel mixture credit) is amended by striking “September 30, 2009” and inserting “December 31, 2009”.(3) Payments.—Subparagraph (C) of section 6427(e)(5) (relating to termination) is amended by striking “September 30, 2009” and inserting “December 31, 2009”.(b) Modifications.—(1) Alternative fuel to include compressed or liquified biomass gas.—Paragraph (2) of section 6426(d) (relating to alternative fuel credit) is amended by striking “and” at the end of subparagraph (E), by redesignating subparagraph (F) as subparagraph (G), and by inserting after subparagraph (E) the following new subparagraph:“(F) compressed or liquefied gas derived from biomass (as defined in section 45K(c)(3)), and”.(2) Credit allowed for aviation use of fuel.—Paragraph (1) of section 6426(d) is amended by inserting “sold by the taxpayer for use as a fuel in aviation,” after “motorboat,”.(c) Carbon Capture Requirement for Certain Fuels.—122 STAT. 3835(1) In general.—Subsection (d) of section 6426, as amended by subsection (a), is amended by redesignating paragraph (4) as paragraph (5) and by inserting after paragraph (3) the following new paragraph:“(4) Carbon capture requirement.—“(A) In general.—The requirements of this paragraph are met if the fuel is certified, under such procedures as required by the Secretary, as having been derived from coal produced at a gasification facility which separates and sequesters not less than the applicable percentage of such facility’s total carbon dioxide emissions.“(B) Applicable percentage.—For purposes of subparagraph (A), the applicable percentage is—“(i) 50 percent in the case of fuel produced after September 30, 2009, and on or before December 30, 2009, and“(ii) 75 percent in the case of fuel produced after December 30, 2009.”.(2) Conforming amendment.—Subparagraph (E) of section 6426(d)(2) is amended by inserting “which meets the requirements of paragraph (4) and which is” after “any liquid fuel”.(d) Effective Date.—The amendments made by this section shall apply to fuel sold or used after the date of the enactment of this Act.