CREDIT FOR STEEL INDUSTRY FUEL.

SEC. 108. CREDIT FOR STEEL INDUSTRY FUEL.(a) Treatment as Refined Coal.—(1) In general.—Subparagraph (A) of section 45(c)(7) of the Internal Revenue Code of 1986 (relating to refined coal), as amended by this Act, is amended to read as follows:“(A) In general.—The term ‘refined coal’ means a fuel—“(i) which—“(I) is a liquid, gaseous, or solid fuel produced from coal (including lignite) or high carbon fly ash, including such fuel used as a feedstock,“(II) is sold by the taxpayer with the reasonable expectation that it will be used for purpose of producing steam,“(III) is certified by the taxpayer as resulting (when used in the production of steam) in a qualified emission reduction, and“(IV) is produced in such a manner as to result in an increase of at least 50 percent in the market value of the refined coal (excluding any increase caused by materials combined or added during the production process), as compared to the value of the feedstock coal, or“(ii) which is steel industry fuel.”.(2) Steel industry fuel defined.—Paragraph (7) of section 45(c) of such Code is amended by adding at the end the following new subparagraph:“(C) Steel industry fuel.—“(i) In general.—The term ‘steel industry fuel’ means a fuel which—“(I) is produced through a process of liquifying coal waste sludge and distributing it on coal, and“(II) is used as a feedstock for the manufacture of coke.“(ii) Coal waste sludge.—The term ‘coal waste sludge’ means the tar decanter sludge and related 122 STAT. 3820 byproducts of the coking process, including such materials that have been stored in ground, in tanks and in lagoons, that have been treated as hazardous wastes under applicable Federal environmental rules absent liquefaction and processing with coal into a feedstock for the manufacture of coke.”.(b) Credit Amount.—(1) In general.—Paragraph (8) of section 45(e) of the Internal Revenue Code of 1986 (relating to refined coal production facilities) is amended by adding at the end the following new subparagraph“(D) Special rule for steel industry fuel.—“(i) In general.—In the case of a taxpayer who produces steel industry fuel—“(I) this paragraph shall be applied separately with respect to steel industry fuel and other refined coal, and“(II) in applying this paragraph to steel industry fuel, the modifications in clause (ii) shall apply.“(ii) Modifications.—“(I) Credit amount.—Subparagraph (A) shall be applied by substituting ‘$2 per barrel-of-oil equivalent’ for ‘$4.375 per ton’.“(II) Credit period.—In lieu of the 10-year period referred to in clauses (i) and (ii)(II) of subparagraph (A), the credit period shall be the period beginning on the later of the date such facility was originally placed in service, the date the modifications described in clause (iii) were placed in service, or October 1, 2008, and ending on the later of December 31, 2009, or the date which is 1 year after the date such facility or the modifications described in clause (iii) were placed in service.“(III) No phaseout.—Subparagraph (B) shall not apply.“(iii) Modifications.—The modifications described in this clause are modifications to an existing facility which allow such facility to produce steel industry fuel.“(iv) Barrel-of-oil equivalent.—For purposes of this subparagraph, a barrel-of-oil equivalent is the amount of steel industry fuel that has a Btu content of 5,800,000 Btus.”.(2) Inflation adjustment.—Paragraph (2) of section 45(b) of such Code is amended by inserting “the $3 amount in subsection (e)(8)(D)(ii)(I),” after “subsection (e)(8)(A),”.(c) Termination.—Paragraph (8) of section 45(d) of the Internal Revenue Code of 1986 (relating to refined coal production facility), as amended by this Act, is amended to read as follows:“(8) Refined coal production facility.—In the case of a facility that produces refined coal, the term ‘refined coal production facility’ means—“(A) with respect to a facility producing steel industry fuel, any facility (or any modification to a facility) which is placed in service before January 1, 2010, and122 STAT. 3821“(B) with respect to any other facility producing refined coal, any facility placed in service after the date of the enactment of the American Jobs Creation Act of 2004 and before January 1, 2010.”.(d) Coordination With Credit for Producing Fuel From a Nonconventional Source.—(1) In general.—Subparagraph (B) of section 45(e)(9) of the Internal Revenue Code of 1986 is amended—(A) by striking “The term” and inserting the following:“(i) In general.—The term”, and(B) by adding at the end the following new clause:“(ii) Exception for steel industry coal.—In the case of a facility producing steel industry fuel, clause (i) shall not apply to so much of the refined coal produced at such facility as is steel industry fuel.”.(2) No double benefit.—Section 45K(g)(2) of such Code is amended by adding at the end the following new subparagraph:“(E) Coordination with section 45.—No credit shall be allowed with respect to any qualified fuel which is steel industry fuel (as defined in section 45(c)(7)) if a credit is allowed to the taxpayer for such fuel under section 45.”.(e) Effective Date.—The amendments made by this section shall apply to fuel produced and sold after September 30, 2008.