1. (a)

   1. (1) In this section the following words have the meanings indicated.

   2. (2)

      1. (i) “Renewable fuel” means gaseous, liquid, or solid fuel from any organic matter and its by-products.

      2. (ii) “Renewable fuel” includes fuel from:

         1. 1. an agricultural crop, agricultural waste, or agricultural residue;
         2. 2. wood, wood waste, or wood residue;
         3. 3. animal waste;
         4. 4. aquatic plants;
         5. 5. sewage or sewage sludge;
         6. 6. municipal, industrial, or commercial waste;
         7. 7. any mixture of any of these substances with inorganic refuse from a public or private municipal waste collection system or similar disposal system; or
         8. 8. any combination of items 1 through 7 of this subparagraph.
      3. (iii) “Renewable fuel” does not include fossil fuel.

   3. (3) “Transportation facility” means a transportation facility that is used exclusively to transport fuel produced by a fuel production facility to:

      1. (i) a storage facility;
      2. (ii) a pipeline connection to an existing pipeline or processing facility; or
      3. (iii) an area near the fuel production facility.

2. (b) A project qualifies as an energy project if it consists of:

   1. (1) an energy conservation project;
   2. (2) a solar energy project;
   3. (3) the construction of a facility to produce solar energy equipment;

   4. (4) the construction of a facility or portion of a facility to:

      1. (i) produce renewable fuel; and

      2. (ii) burn renewable fuel, or a mixture of renewable fuel with other materials, to generate:

         1. 1. heat;
         2. 2. mechanical power;
         3. 3. electricity, including by cogeneration; or
         4. 4. other useful forms of energy;
   5. (5) the conversion of any facility to use renewable fuel;
   6. (6) the expansion or improvement of a facility that increases its capacity or efficiency to use renewable fuel;
   7. (7) the acquisition and improvement of equipment for use in a facility specified in items (4) through (6) of this subsection;
   8. (8) the acquisition or improvement of land for a facility specified in items (4) through (6) of this subsection;
   9. (9) the purchase, construction, or installation of a facility or equipment to use groundwater as a heat source for a heating system or as a heat sink for an air conditioning system;
   10. (10) the purchase, construction, or installation of a facility or equipment to develop and use the natural heat of the earth for direct use or to generate electricity;

   11. (11) the purchase, construction, and installation of a hydroelectric facility at an existing dam that:

       1. (i) uses the water power potential of the dam; and
       2. (ii) has no more than 30 megawatts of installed capacity;

   12. (12) the construction of a fuel production facility for commercial production of a gaseous, liquid, or solid fuel, or of a combination of them, that:

       1. (i) is produced by chemical or physical transformation of coal or mixtures of coal and other materials;
       2. (ii) can be used as a substitute for petroleum or natural gas, or any of their derivatives, including chemical feedstocks; and

       3. (iii) includes only:

          1. 1. the fuel production facility, including the equipment, plant, supplies, and other materials associated with the fuel production facility;
          2. 2. the land and mineral rights required directly for use in connection with the fuel production facility;

          3. 3. any other facility or equipment to be used in the extraction of a mineral for use directly and exclusively in the fuel production facility that is necessary to the project and is:

             1. A. colocated with or located in the immediate vicinity of the fuel production facility; or
             2. B. if not colocated or located in accordance with item A of this item:
             3. I. a coal mine in the case that no other reasonable source of coal is available to the project; or
             4. II. incidental to the project; and

          4. 4. any transportation facility, electric power plant, electric transmission line, or other facility that is:

             1. A. for the exclusive use of the project;
             2. B. incidental to the project; and
             3. C. necessary to the project;
   13. (13) the conversion of a facility from using petroleum-based fuel to coal or to a mixture of coal and other materials as a fuel; or
   14. (14) the construction of a facility to burn coal using innovative technology that increases the efficiency of the combustion process.

Added by Acts 2008, c. 306, § 2, eff. Oct. 1, 2008. Amended by Acts 2008, c. 36, § 6, eff. April 8, 2008; Acts 2009, c. 60, § 1, eff. April 14, 2009.