[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4004 Introduced in House (IH)]







109th CONGRESS
  1st Session
                                H. R. 4004

  To reduce the price of gasoline by allowing for offshore drilling, 
eliminating Federal obstacles to constructing refineries and providing 
incentives for investment in refineries, suspending Federal fuel taxes 
   when gasoline prices reach a benchmark amount, and promoting free 
                                 trade.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            October 6, 2005

   Mr. Paul introduced the following bill; which was referred to the 
   Committee on Ways and Means, and in addition to the Committees on 
   Resources and Financial Services, for a period to be subsequently 
   determined by the Speaker, in each case for consideration of such 
 provisions as fall within the jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL


 
  To reduce the price of gasoline by allowing for offshore drilling, 
eliminating Federal obstacles to constructing refineries and providing 
incentives for investment in refineries, suspending Federal fuel taxes 
   when gasoline prices reach a benchmark amount, and promoting free 
                                 trade.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Affordable Gas 
Price Act''.
    (b) Table of Contents.--

Sec. 1. Short title; table of contents.
Sec. 2. Findings.
Sec. 3. Termination of restrictions on oil and natural gas development 
                            on Federal lands.
Sec. 4. Limitation of suits under National Environmental Policy Act of 
                            1969.
Sec. 5. Incentives for investment in oil refineries.
Sec. 6. Suspension of fuel taxes on highway motor fuels when weekly 
                            United States retail gasoline prices exceed 
                            benchmark.
Sec. 7. Increase in mileage reimbursement rates.
Sec. 8. Termination of application of title IV of the Trade Act of 1974 
                            to the Russian Federation and Kazakhstan.
Sec. 9. Study on effects of oil prices on monetary policy.

SEC. 2. FINDINGS.

    Congress finds the following:
            (1) In recent months gas prices across the country have 
        risen to as much as over $4 per gallon.
            (2) High fuel costs retard economic growth and diminish the 
        quality of life for all Americans.
            (3) The trucking industry is particularly hard hit by high 
        fuel prices.
            (4) Attempts to address the issue of high gasoline costs by 
        increasing government involvement in the market through 
        measures such as price controls will only lead to shortages, 
        rationing, and a return of gasoline lines.
            (5) The Federal regulations restricting drilling impose 
        prohibitive costs on the development of new sources of energy, 
        artificially inflating the price of gas.
            (6) Federal gas tax inflate the price of oil thus burdening 
        American families, business, and truckers.
            (7) Allowing private parties to delay, or even halt, the 
        construction of new refineries through litigation over the 
        National Environmental Protection Act's Environmental Impact 
        Statement requirement reduces the supply of gas thus raising 
        gas prices.
            (8) The so-called Jackson-Vanik (``freedom-of-emigration'') 
        amendment (section 402) of the Trade Act of 1974 was a United 
        States reaction to the Soviet Union's highly restrictive 
        emigration policy of the time.
            (9) By 2005, some 15 years after the end of communist rule 
        over the USSR, successor states Russia and Kazakhstan allow 
        their citizens the right and opportunity to emigrate, free of 
        any heavy tax on the visas or other documents required for 
        emigration and free of any other tax, levy, fine, fee, or other 
        charge on any citizens as a consequence of the desire of such 
        citizens to emigrate to the country of their choice.
            (10) Elimination of the Jackson-Vanik amendment's threat of 
        trade-restricting provisions would increase the United States 
        access to oil supplies from non-Arab countries, thus lowering 
        gas prices.
            (11) The adoption of a monetary system of fiat currency 
        unbacked by any ties to gold may have contributed to the raise 
        in gas prices.

SEC. 3. TERMINATION OF RESTRICTIONS ON OIL AND NATURAL GAS DEVELOPMENT 
              ON FEDERAL LANDS.

    (a) Outer Continental Shelf.--
            (1) Termination of laws prohibiting expenditures for 
        natural gas leasing and preleasing activities.--All provisions 
        of existing Federal law prohibiting the spending of 
        appropriated funds to conduct oil or natural gas leasing and 
        preleasing activities for any area of the Outer Continental 
        Shelf shall have no force or effect.
            (2) Revocation of existing presidential withdrawals.--All 
        existing withdrawals by the President under the authority of 
        section 12 of the Outer Continental Shelf Lands Act (43 U.S.C. 
        1341) are hereby revoked and are no longer in effect with 
        respect to the leasing of areas for exploration for, and 
        development and production of, oil or natural gas.
    (b) Coastal Plain of Alaska.--Sections 1002(i) and 1003 of the 
Alaska National Interest Lands Conservation Act (16 U.S.C. 3142(i) and 
3143) are repealed.

SEC. 4. LIMITATION OF SUITS UNDER NATIONAL ENVIRONMENTAL POLICY ACT OF 
              1969.

    Section 102 of the National Environmental Policy Act of 1969 (42 
U.S.C. 4332) is amended by inserting ``(a) In General.--'' before the 
first sentence, and by adding at the end the following:
    ``(b) Limitation on Suits.--A statement required under subsection 
(a)(2)(C) is not subject to judicial review.''.

SEC. 5. INCENTIVES FOR INVESTMENT IN OIL REFINERIES.

    (a) Increase of Expensing for Refineries.--
            (1) In general.--Subsection (a) of section 179C of the 
        Internal Revenue Code of 1986 (relating to election to expense 
        certain refineries) is amended by striking ``50 percent'' and 
        inserting ``100 percent''.
            (2) Effective date.--The amendments made by this subsection 
        shall take effect as if included in section 1323 of the Energy 
        Policy Act of 2005.
    (b) Class Life for Refineries.--
            (1) In general.--Subparagraph (B) of section 168(e)(3) of 
        the Internal Revenue Code of 1986 (relating to 5-year property) 
        is amended by striking ``and'' at the end of clause (v), by 
        striking the period at the end of clause (vi) and inserting ``, 
        and'', and by adding at the end the following new clause:
                            ``(vii) any petroleum refining property.''.
            (2) Petroleum refining asset.--Section 168(i) of such Code 
        is amended by adding at the end the following new paragraph:
            ``(17) Petroleum refining property.--
                    ``(A) In general.--The term `petroleum refining 
                property' means any asset for petroleum refining, 
                including assets used for the distillation, 
                fractionation, and catalytic cracking of crude 
                petroleum into gasoline and its other components.
                    ``(B) Asset must meet environmental laws.--Such 
                term shall not include any asset which does not meet 
                all applicable environmental laws in effect on the date 
                such asset was placed in service. For purposes of the 
                preceding sentence, a waiver under the Clean Air Act 
                shall not be taken into account in determining whether 
                the applicable environmental laws have been met.
                    ``(C) Special rule for mergers and acquisitions.--
                Such term shall not include any asset with respect to 
                which a deduction was taken under subsection (e)(3)(B) 
                by any other taxpayer in any preceding year.''.
            (3) Effective date.--
                    (A) In general.--The amendments made by this 
                subsection shall apply to refineries placed in service 
                after the date of the enactment of this Act.
                    (B) Exception.--The amendments made by this section 
                shall not apply to any refinery with respect to which 
                the taxpayer has entered into a binding contract for 
                the construction thereof on or before the date of the 
                enactment of this Act.

SEC. 6. SUSPENSION OF FUEL TAXES ON HIGHWAY MOTOR FUELS WHEN WEEKLY 
              UNITED STATES RETAIL GASOLINE PRICES EXCEED BENCHMARK.

    (a) In General.--Section 4081 of the Internal Revenue Code of 1986 
(relating to imposition of tax on motor and aviation fuels) is amended 
by adding at the end the following new subsection:
    ``(f) Suspension of Highway Motor Fuel Taxes When Retail Gasoline 
Exceeds Benchmark.--
            ``(1) In general.--During any suspension period, the tax 
        imposed by section 4041 or 4081 on highway motor fuel shall be 
        suspended.
            ``(2) Definitions and special rule.--For purposes of this 
        subsection--
                    ``(A) Suspension period.--The term `suspension 
                period' means the period--
                            ``(i) beginning on the date on which the 
                        weekly United States retail gasoline price, 
                        regular grade (as published by the Energy 
                        Information Administration, Department of 
                        Energy), inclusive of such tax, is greater than 
                        $3.00 per gallon, and
                            ``(ii) ending on the date on which such 
                        price (as so published), without regard to this 
                        subsection, does not exceed $3.00 per gallon.
                    ``(B) Highway motor fuel.--The term `highway motor 
                fuel' means any fuel subject to tax under section 4041 
                or 4081 other than aviation gasoline and aviation-grade 
                kerosene.''.
    (b) Maintenance of Trust Funds Deposits; Amounts Appropriated to 
Trust Funds Treated as Taxes.--
            (1) In general.--There is hereby appropriated (out of any 
        money in the Treasury not otherwise appropriated) to each trust 
        fund which would (but for this subsection) receive reduced 
        revenues as a result of a suspension in a rate of tax by reason 
        of section 4081(f)(1) of the Internal Revenue Code of 1986 (as 
        added by this section) an amount equal to such reduction in 
        revenues. Amounts appropriated by the preceding sentence to any 
        trust fund--
                    (A) shall be transferred from the general fund at 
                such times and in such manner as to replicate to the 
                extent possible the transfers which would have occurred 
                had subsection (a) not been enacted, and
                    (B) shall be treated for all purposes of Federal 
                law as taxes received under the appropriate section 
                referred to in such section 4081(f)(1).
    (c) Effective Date.--The amendment made by this section shall take 
effect on the date of the enactment of this Act.
    (d) Floor Stock Refunds.--
            (1) In general.--If--
                    (A) before the tax suspension date, tax has been 
                imposed under section 4081 of the Internal Revenue Code 
                of 1986 on any highway motor fuel, and
                    (B) on such date such fuel is held by a dealer and 
                has not been used and is intended for sale,
        there shall be credited or refunded (without interest) to the 
        person who paid such tax (hereafter in this subsection referred 
        to as the ``taxpayer'') an amount equal to the excess of the 
        tax paid by the taxpayer over the tax which would be imposed on 
        such fuel had the taxable event occurred on such date.
            (2) Time for filing claims.--No credit or refund shall be 
        allowed or made under this subsection unless--
                    (A) claim therefor is filed with the Secretary of 
                the Treasury before the date which is 6 months after 
                the tax suspension date based on a request submitted to 
                the taxpayer before the date which is 3 months after 
                the tax suspension date by the dealer who held the 
                highway motor fuel on such date, and
                    (B) the taxpayer has repaid or agreed to repay the 
                amount so claimed to such dealer or has obtained the 
                written consent of such dealer to the allowance of the 
                credit or the making of the refund.
            (3) Exception for fuel held in retail stocks.--No credit or 
        refund shall be allowed under this subsection with respect to 
        any highway motor fuel in retail stocks held at the place where 
        intended to be sold at retail.
            (4) Definitions.--For purposes of this subsection--
                    (A) Tax suspension date.--The term ``tax suspension 
                date'' means the first day of any suspension period in 
                effect under section 4081(f) of the Internal Revenue 
                Code of 1986 (as added by subsection (a) of this 
                section).
                    (B) Other terms.--The terms ``dealer'' and ``held 
                by a dealer'' have the respective meanings given to 
                such terms by section 6412 of such Code.
            (5) Certain rules to apply.--Rules similar to the rules of 
        subsections (b) and (c) of section 6412 of such Code shall 
        apply for purposes of this subsection.
    (e) Floor Stocks Tax.--
            (1) Imposition of tax.--In the case of any highway motor 
        fuel which is held on the tax restoration date by any person, 
        there is hereby imposed a floor stocks tax equal to the excess 
        of the tax which would be imposed on such fuel had the taxable 
        event occurred on such date over the tax (if any) previously 
        paid (and not credited or refunded) on such fuel.
            (2) Liability for tax and method of payment.--
                    (A) Liability for tax.--The person holding highway 
                motor fuel on the tax restoration date to which the tax 
                imposed by paragraph (1) applies shall be liable for 
                such tax.
                    (B) Method of payment.--The tax imposed by 
                paragraph (1) shall be paid in such manner as the 
                Secretary shall prescribe.
                    (C) Time for payment.--The tax imposed by paragraph 
                (1) shall be paid on or before the 45th day after the 
                tax restoration date.
            (3) Definitions.--For purposes of this subsection--
                    (A) Tax restoration date.--The term ``tax 
                restoration date'' means the first day after the 
                suspension period (as defined in section 4081(f) of the 
                Internal Revenue Code of 1986).
                    (B) Highway motor fuel.--The term ``highway motor 
                fuel'' has the meaning given to such term by section 
                4081(f) of such Code.
                    (C) Held by a person.--A highway motor fuel shall 
                be considered as held by a person if title thereto has 
                passed to such person (whether or not delivery to the 
                person has been made).
                    (D) Secretary.--The term ``Secretary'' means the 
                Secretary of the Treasury or the Secretary's delegate.
            (4) Exception for exempt uses.--The tax imposed by 
        paragraph (1) shall not apply to any highway motor fuel held by 
        any person exclusively for any use to the extent a credit or 
        refund of the tax is allowable for such use.
            (5) Exception for certain amounts of fuel.--
                    (A) In general.--No tax shall be imposed by 
                paragraph (1) on any highway motor fuel held on the tax 
                restoration date by any person if the aggregate amount 
                of such highway motor fuel held by such person on such 
                date does not exceed 2,000 gallons. The preceding 
                sentence shall apply only if such person submits to the 
                Secretary (at the time and in the manner required by 
                the Secretary) such information as the Secretary shall 
                require for purposes of this subparagraph.
                    (B) Exempt fuel.--For purposes of subparagraph (A), 
                there shall not be taken into account any highway motor 
                fuel held by any person which is exempt from the tax 
                imposed by paragraph (1) by reason of paragraph (4).
                    (C) Controlled groups.--For purposes of this 
                subsection--
                            (i) Corporations.--
                                    (I) In general.--All persons 
                                treated as a controlled group shall be 
                                treated as 1 person.
                                    (II) Controlled group.--The term 
                                ``controlled group'' has the meaning 
                                given to such term by subsection (a) of 
                                section 1563 of such Code; except that 
                                for such purposes the phrase ``more 
                                than 50 percent'' shall be substituted 
                                for the phrase ``at least 80 percent'' 
                                each place it appears in such 
                                subsection.
                            (ii) Nonincorporated persons under common 
                        control.--Under regulations prescribed by the 
                        Secretary, principles similar to the principles 
                        of subparagraph (A) shall apply to a group of 
                        persons under common control if 1 or more of 
                        such persons is not a corporation.
            (6) Other laws applicable.--All provisions of law, 
        including penalties, applicable with respect to the taxes 
        imposed by section 4081of such Code shall, insofar as 
        applicable and not inconsistent with the provisions of this 
        subsection, apply with respect to the floor stock taxes imposed 
        by paragraph (1) to the same extent as if such taxes were 
        imposed by such section.

SEC. 7. INCREASE IN MILEAGE REIMBURSEMENT RATES.

    (a) Business.--For purposes of the Internal Revenue Code of 1986, 
after the date of the enactment of this Act, the optional standard 
mileage rates to be used for computing the deductible costs of 
operating an automobile for business purposes shall be not less than 70 
cents per mile.
    (b) Medical, Moving, and Charitable Contribution Rates.--For any 
day during the period under which highway motor fuel taxes are 
suspended under section 4081(f) of the Internal Revenue Code of 1986--
            (1) the optional standard mileage rates to be used for 
        computing the deductible costs of operating an automobile for 
        medical, moving, and charitable purposes shall be the same rate 
        which is in effect for such day for business purposes, and
            (2) the rate under section 170(i) shall not apply.

SEC. 8. TERMINATION OF APPLICATION OF TITLE IV OF THE TRADE ACT OF 1974 
              TO THE RUSSIAN FEDERATION AND KAZAKHSTAN.

    (a) Presidential Determinations and Extensions of Nondiscriminatory 
Treatment.--Notwithstanding any provision of title IV of the Trade Act 
of 1974 (19 U.S.C. 2431 et seq.), the President may--
            (1) determine that such title should no longer apply to 
        both the Russian Federation and Kazakhstan; and
            (2) after making a determination under paragraph (1) with 
        respect to the Russian Federation and Kazakhstan, proclaim the 
        extension of nondiscriminatory treatment (normal trade 
        relations treatment) to the products of those countries.
    (b) Termination of Application of Title IV.--On and after the 
effective date of the extension under subsection (a)(2) of 
nondiscriminatory treatment to the products of the Russian Federation 
and Kazakhstan, title IV of the Trade Act of 1974 shall cease to apply 
to those countries.

SEC. 9. STUDY ON EFFECTS OF OIL PRICES ON MONETARY POLICY.

    Not later than six months after the enactment of this Act, the 
Secretary of the Treasury and the Board of Governors of the Federal 
Reserve System shall produce a study on the relationship between the 
increase price of oil and the monetary system of fiat currency. The 
results of this study shall be presented to the Chair of the Committee 
on Financial Services of the House of Representatives and the Chair of 
the Committee on Banking, Housing, and Urban Affairs of the Senate.
                                 <all>