Denial of certain tax benefits to offending oil polluters

(a)

In general

Subchapter B of chapter 1 of the Internal Revenue Code of 1986 is amended by adding at the end the following new part:

XII

Denial of certain tax benefits to offending oil polluters

Sec. 293. Denial of certain tax benefits to offending oil polluters.

293.

Denial of certain tax benefits to offending oil polluters

(a)

In general

In the case of an offending oil polluter, no deduction or credit shall be allowed under this chapter with respect to any amount paid or incurred in connection with a discharge of oil referred to in subsection (b)(1). (b)

Offending oil polluter

For purposes of this section, the term offending oil polluter means— (1)any person that is a responsible party for a vessel or a facility from which oil is discharged (within the meaning of section 1002 of the Oil Pollution Act of 1990 (33 U.S.C. 2702)) unless— (A)the person has met all of its obligations under such Act to provide compensation for covered removal costs and damages, and (B)during the 7-year period ending on the first date of such discharge, the person, in connection with activities in the oil industry (including exploration, development, production, transportation by pipeline, and refining)— (i)was not found to have committed willful or repeated violations under the Occupational Safety and Health Act of 1970 (29 U.S.C. 651 et seq.) (including State plans approved under section 18(c) of such Act (29 U.S.C. 667(c))) at a rate that is higher than five times the rate determined by the Secretary, in consultation with the Secretary of the Interior, to be the oil industry average for such violations for such period, (ii)was not convicted of a criminal violation for death or serious bodily injury, (iii)did not have more than 10 fatalities at its exploration, development, and production facilities and refineries as a result of violations of Federal or State health, safety, or environmental laws, (iv)was not assessed, did not enter into an agreement to pay, and was not otherwise required to pay, civil penalties and criminal fines for violations the person was found to have committed under the Federal Water Pollution Control Act (33 U.S.C. 1251 et seq.) (including State programs approved under sections 402 and 404 of such Act (33 U.S.C. 1342 and 1344)) in a total amount that is equal to more than $10,000,000, and (v)was not assessed, did not enter into an agreement to pay, and was not otherwise required to pay, civil penalties and criminal fines for violations the person was found to have committed under the Clean Air Act (42 U.S.C. 7401 et seq.) (including State plans approved under section 110 of such Act (42 U.S.C. 7410)) in a total amount that is equal to more than $10,000,000, and (2)any person who is a member of the same expanded affiliated group (as defined in section 1471(e)(2)) as a person described in paragraph (1).

(b)

Clerical amendment

The table of parts for subchapter B of chapter 1 of such Code is amended by adding at the end the following new item:

Part XII. Denial of certain tax benefits to offending oil polluters

(c)

Effective date

The amendments made by this section shall apply to amounts paid or incurred after December 31, 2012.