RENEWABLE ENERGY CREDIT.

SEC. 101. RENEWABLE ENERGY CREDIT.(a) Extension of Credit.—(1) 1-year extension for wind and refined coal facilities.—Paragraphs (1) and (8) of section 45(d) are each amended by striking “January 1, 2009” and inserting “January 1, 2010”.(2) 2-year extension for certain other facilities.—Each of the following provisions of section 45(d) is amended by striking “January 1, 2009” and inserting “January 1, 2011”:(A) Clauses (i) and (ii) of paragraph (2)(A).(B) Clauses (i)(I) and (ii) of paragraph (3)(A).(C) Paragraph (4).(D) Paragraph (5).(E) Paragraph (6).(F) Paragraph (7).(G) Subparagraphs (A) and (B) of paragraph (9).(b) Modification of Refined Coal as a Qualified Energy Resource.—(1) Elimination of increased market value test.—Section 45(c)(7)(A)(i) (defining refined coal), as amended by section 108, is amended—(A) by striking subclause (IV),(B) by adding “and” at the end of subclause (II), and(C) by striking “, and” at the end of subclause (III) and inserting a period.(2) Increase in required emission reduction.—Section 45(c)(7)(B) (defining qualified emission reduction) is amended by inserting “at least 40 percent of the emissions of” after “nitrogen oxide and”.122 STAT. 3809(c) 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”.(d) Expansion of Biomass Facilities.—(1) Open-loop biomass facilities.—Paragraph (3) of section 45(d) is amended by redesignating subparagraph (B) as subparagraph (C) and by inserting after subparagraph (A) the following new subparagraph:“(B) Expansion of facility.—Such term shall include a new unit placed in service after the date of the enactment of this subparagraph in connection with a facility described in subparagraph (A), but only to the extent of the increased amount of electricity produced at the facility by reason of such new unit.”.(2) Closed-loop biomass facilities.—Paragraph (2) of section 45(d) is amended by redesignating subparagraph (B) as subparagraph (C) and inserting after subparagraph (A) the following new subparagraph:“(B) Expansion of facility.—Such term shall include a new unit placed in service after the date of the enactment of this subparagraph in connection with a facility described in subparagraph (A)(i), but only to the extent of the increased amount of electricity produced at the facility by reason of such new unit.”.(e) Modification of Rules for Hydropower Production.—Subparagraph (C) of section 45(c)(8) is amended to read as follows:“(C) Nonhydroelectric dam.—For purposes of subparagraph (A), a facility is described in this subparagraph if—“(i) the hydroelectric project installed on the nonhydroelectric dam is licensed by the Federal Energy Regulatory Commission and meets all other applicable environmental, licensing, and regulatory requirements,“(ii) the nonhydroelectric dam was placed in service before the date of the enactment of this paragraph and operated for flood control, navigation, or water supply purposes and did not produce hydroelectric power on the date of the enactment of this paragraph, and“(iii) the hydroelectric project is operated so that the water surface elevation at any given location and time that would have occurred in the absence of the hydroelectric project is maintained, subject to any license requirements imposed under applicable law that change the water surface elevation for the purpose of improving environmental quality of the affected waterway.The Secretary, in consultation with the Federal Energy Regulatory Commission, shall certify if a hydroelectric project licensed at a nonhydroelectric dam meets the criteria in clause (iii). Nothing in this section shall affect the standards under which the Federal Energy Regulatory Commission issues licenses for and regulates hydropower projects under part I of the Federal Power Act.”.122 STAT. 3810(f) Effective Date.—(1) In general.—Except as otherwise provided in this subsection, the amendments made by this section shall apply to property originally placed in service after December 31, 2008.(2) Refined coal.—The amendments made by subsection (b) shall apply to coal produced and sold from facilities placed in service after December 31, 2008.(3) Trash facility clarification.—The amendments made by subsection (c) shall apply to electricity produced and sold after the date of the enactment of this Act.(4) Expansion of biomass facilities.—The amendments made by subsection (d) shall apply to property placed in service after the date of the enactment of this Act.