text: SECTION 1. SHORT TITLE.
  
      This Act may be cited as the ``Algae-based Renewable Fuel Promotion 
  Act of 2010''.
  
  SEC. 2. ALGAE TREATED AS A QUALIFIED FEEDSTOCK FOR PURPOSES OF THE 
                CELLULOSIC BIOFUEL PRODUCER CREDIT, ETC.
  
      (a) In General.--Subclause (I) of section 40(b)(6)(E)(i) of the 
  Internal Revenue Code of 1986 is amended to read as follows:
                                      ``(I) is derived solely from 
                                  qualified feedstocks, and''.
      (b) Qualified Feedstock; Special Rules for Algae.--Paragraph (6) of 
  section 40(b) of such Code is amended by redesignating subparagraphs 
  (F), (G), and (H) as subparagraphs (H), (I), and (J), respectively, and 
  by inserting after subparagraph (E) the following new subparagraphs:
                      ``(F) Qualified feedstock.--For purposes of this 
                  paragraph, the term `qualified feedstock' means--
                              ``(i) any lignocellulosic or hemicellulosic 
                          matter that is available on a renewable or 
                          recurring basis, and
                              ``(ii) any cultivated algae, cyanobacteria, 
                          or lemna.
                      ``(G) Special rules for algae.--In the case of fuel 
                  which is derived from feedstock described in 
                  subparagraph (F)(ii) and which is sold by the taxpayer 
                  to another person for refining by such other person 
                  into a fuel which meets the requirements of 
                  subparagraph (E)(i)(II)--
                              ``(i) such sale shall be treated as 
                          described in subparagraph (C)(i),
                              ``(ii) such fuel shall be treated as 
                          meeting the requirements of subparagraph 
                          (E)(i)(II) in the hands of such taxpayer, and
                              ``(iii) except as provided in this 
                          subparagraph, such fuel (and any fuel derived 
                          from such fuel) shall not be taken into account 
                          under subparagraph (C) with respect to the 
                          taxpayer or any other person.''.
      (c) Algae Treated as a Qualified Feedstock for Purposes of Bonus 
  Depreciation for Biofuel Plant Property.--
              (1) In general.--Subparagraph (A) of section 168(l)(2) of 
          such Code is amended by striking ``solely to produce cellulosic 
          biofuel'' and inserting ``solely to produce second generation 
          biofuel (as defined in section 40(b)(6)(E)''.
              (2) Conforming amendments.--Subsection (l) of section 168 
          of such Code is amended--
                      (A) by striking ``cellulosic biofuel'' each place 
                  it appears in the text thereof and inserting ``second 
                  generation biofuel'',
                      (B) by striking paragraph (3) and redesignating 
                  paragraphs (4) through (8) as paragraphs (3) through 
                  (7), respectively,
                      (C) by striking ``Cellulosic'' in the heading of 
                  such subsection and inserting ``Second Generation'', 
                  and
                      (D) by striking ``cellulosic'' in the heading of 
                  paragraph (2) and inserting ``second generation''.
      (d) Conforming Amendments.--
              (1) Section 40 of such Code, as amended by subsection (b), 
          is amended--
                      (A) by striking ``cellulosic biofuel'' each place 
                  it appears in the text thereof and inserting ``second 
                  generation biofuel'',
                      (B) by striking ``Cellulosic'' in the headings of 
                  subsections (b)(6), (b)(6)(E), and (d)(3)(D) and 
                  inserting ``Second generation'', and
                      (C) by striking ``cellulosic'' in the headings of 
                  subsections (b)(6)(C), (b)(6)(D), (b)(6)(H), (d)(6), 
                  and (e)(3) and inserting ``second generation''.
              (2) Clause (ii) of section 40(b)(6)(E) of such Code is 
          amended by striking ``Such term shall not'' and inserting ``The 
          term `second generation biofuel' shall not''.
              (3) Paragraph (1) of section 4101(a) of such Code is 
          amended by striking ``cellulosic biofuel'' and inserting 
          ``second generation biofuel''.
      (e) Effective Date.--
              (1) In general.--Except as provided in paragraph (2), the 
          amendments made by this section shall apply to fuels sold or 
          used after the date of the enactment of this Act.
              (2) Application to bonus depreciation.--The amendments made 
          by subsection (c) shall apply to property placed in service 
          after the date of the enactment of this Act.
  
  SEC. 3. PAYGO COMPLIANCE.
  
      The budgetary effects of this Act, for the purpose of complying 
  with the Statutory Pay-As-You-Go Act of 2010, shall be determined by 
  reference to the latest statement titled ``Budgetary Effects of PAYGO 
  Legislation'' for this Act, submitted for printing in the Congressional 
  Record by the Chairman of the House Budget Committee, provided that 
  such statement has been submitted prior to the vote on passage.
  
              Passed the House of Representatives September 28, 2010.
  
              Attest:
  
                                              LORRAINE C. MILLER,
  
                                                                   Clerk.
target: Algae-based Renewable Fuel Promotion Act of 2010 - Amends the Internal Revenue Code to modify the definition of "cellulosic biofuel" for purposes of the cellulosic biofuel producer tax credit and the special depreciation allowance to mean any liquid fuel which is derived solely from qualified feedstocks. Defines "qualified feedstocks" as any lignocellulosic or hemicellulosic matter that is available on a renewable or recurring basis and any cultivated algae, cyanobacteria, or lemna.
  
  Provides for compliance of the budgetary effects of this Act with the Statutory Pay-As-You-Go Act of 2010.
feat_title: To amend the Internal Revenue Code of 1986 to expand the definition of cellulosic biofuel to include algae-based biofuel for purposes of the cellulosic biofuel producer credit and the special allowance for cellulosic biofuel plant property.