text: SECTION 1. MODIFICATION OF REFINED COAL CREDIT TO INCLUDE QUALIFIED 
                COAL WASTE SLUDGE RECYCLING.
  
      (a) In General.--Section 45 of the Internal Revenue Code of 1986 
  (relating to electricity produced from certain renewable resources, 
  etc.) is amended--
              (1) in subsection (b)(2) by inserting ``the $3.00 amount in 
          subsection (e)(8)(B),'' after ``the $4.375 amount in subsection 
          (e)(8)(A),'',
              (2) in subsection (b)(2) by striking ``subsection 
          (e)(8)(B)(i)'' and inserting ``subsection (e)(8)(C)(i)'',
              (3) in subsection (c)(7) by adding at the end the 
          following:
                      ``(C) Refined coal from a qualified coal waste 
                  sludge recycling process.--Refined coal shall also 
                  include, without regard to subparagraphs (A) and (B) 
                  hereof, a solid fuel produced from a qualified coal 
                  waste sludge recycling process.'',
              (4) in subsection (d)(8) by striking ``2009.'' and 
          inserting ``2009, or in the case of a facility that uses a 
          qualified coal waste sludge recycling process, a facility that 
          was placed in service not later than one year after the date of 
          enactment of the credit under this section for refined coal 
          from a qualified coal waste sludge recycling process. For 
          purposes of this subsection, a qualified coal waste sludge 
          recycling facility shall be treated as placed in service when 
          such facility is in place and functioning to process coal with 
          coal waste sludge. A `qualified coal waste sludge recycling 
          facility' includes a plant, comprised of one or more batch 
          tanks and/or one or more storage tanks, steam and spray pipes, 
          processing pumps, variable speed drives, a flowmeter and 
          related electrical equipment, that processes coal and liquefied 
          coal waste sludge.'',
              (5) in subsection (e)(8)(A) by inserting ``(other than 
          refined coal from a qualified coal waste sludge recycling 
          process)'' after ``refined coal'' the first place it appears,
              (6) in subsection (e)(8) by redesignating subparagraphs (B) 
          and (C) as subparagraphs (C) and (D), respectively, and by 
          inserting after subparagraph (A) the following new 
          subparagraph:
                      ``(B) Availability and determination of credit 
                  amount for refined coal from a qualified coal waste 
                  sludge recycling process.--In the case of a producer of 
                  refined coal from a qualified coal waste sludge 
                  recycling process, there shall be allowed a credit for 
                  the taxable year under this section of $3.00 per 
                  barrel-of-oil equivalent of refined coal from a 
                  qualified coal waste sludge recycling process--
                              ``(i) produced by the taxpayer at a 
                          facility using a refined coal from qualified 
                          coal waste sludge recycling process during the 
                          period beginning on the date of enactment of 
                          this subparagraph and ending on the date that 
                          is four years from the later of the first day 
                          of the fifth full month after the date of 
                          enactment of this subparagraph or its placed-
                          in-service date, and
                              ``(ii) sold by the taxpayer--
                                      ``(I) to an unrelated person, and
                                      ``(II) during such period and 
                                  taxable year.
                          For purposes of the preceding sentence, barrel-
                          of-oil equivalent is the amount of refined coal 
                          from a qualified coal waste sludge recycling 
                          process that has a Btu content of 5.8 
                          million.'',
              (7) in subsection (e)(8)(C), as redesignated by paragraph 
          (6), by striking ``The amount'' and inserting ``Except for a 
          facility producing refined coal from a qualified coal waste 
          sludge recycling process, the amount'',
              (8) in subsection (e)(8), as amended by paragraph (6), by 
          adding at the end the following new subparagraph:
                      ``(E) Qualified coal waste sludge recycling 
                  process.--
                              ``(i) Definition.--For purposes of this 
                          section, a `qualified coal waste sludge 
                          recycling process' means a process using a 
                          facility to liquefy coal waste sludge and 
                          distribute the liquefied coal waste sludge on 
                          the coal to create a feedstock for the 
                          manufacture of coke. The term `coal waste 
                          sludge' means the tar decanter sludge and 
                          related 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. The 
                          process liquefies coal waste sludge and 
                          distributes approximately one-quarter to one-
                          half gallon of liquefied coal waste sludge per 
                          each ton of metallurgical coal. Liquefied coal 
                          waste sludge in excess of such amounts would 
                          have adverse effects on the operations and 
                          equipment of the coke batteries that use 
                          refined coal from a qualified coal waste sludge 
                          recycling process as a feedstock for coke. Coal 
                          waste sludge has an energy content ranging from 
                          7,000 to 16,000 Btus per pound.
                              ``(ii) Interaction between section 45 and 
                          section 45k; cross reference.--A taxpayer 
                          selling refined coal from a qualified coal 
                          waste sludge recycling process shall be 
                          entitled to a credit under this section for all 
                          such refined coal that meets the requirements 
                          of this section. The credit under this section 
                          shall be available notwithstanding the fact 
                          that such refined coal is purchased for use as 
                          a feedstock for coke by a taxpayer that has 
                          previously claimed credits under section 45K 
                          for the production of coke or coke gas. For 
                          rules applicable to taxpayers producing coke or 
                          coke gas from refined coal from a qualified 
                          coal waste sludge recycling process, see 
                          section 45K(h).'', and
              (9) in subsection (e)(9)(B) by striking ``The term'' and 
          inserting ``Except for a facility producing refined coal from a 
          qualified coal waste sludge recycling process, the term''.
      (b) No Double Benefit; Cross Reference.--Section 45K of such Code 
  is amended by adding at the end the following new subsection:
      ``(h) No Double Benefit; Cross Reference.--No credit shall be 
  allowed under this section for coke or coke gas manufactured from 
  refined coal from a qualified coal waste sludge recycling process (as 
  defined by section 45(e)(8)(E)(i)) for which credits have been claimed 
  under section 45; provided that taxpayers may claim the credit under 
  this section for coke or coke gas produced from feedstocks for which a 
  refined coal credit under section 45 has not been claimed. For rules 
  governing the interaction of section 45 and this section that are 
  applicable to taxpayers producing refined coal from a qualified coal 
  waste sludge recycling process, see section 45(e)(8)(E)(ii).''.
      (c) Effective Date.--The amendments made by this Act shall apply to 
  refined coal produced after the date of enactment of this Act.
target: Amends the Internal Revenue Code to expand the definition of "refined coal" for purposes of the tax credit for electricity produced from certain renewable resources to include coal produced from a qualified coal waste sludge recycling process. Defines "qualified coal waste sludge recycling process" as a process using a facility to liquefy coal waste sludge and distribute the liquefied coal waste sludge on the coal to create a feedstock for the manufacture of coke.
feat_title: To amend the Internal Revenue Code of 1986 to modify the refined coal credit to include qualified coal waste sludge recycling.