[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5462 Introduced in House (IH)]








109th CONGRESS
  2d Session
                                H. R. 5462

 To suspend the Federal highway fuels taxes, to authorize the leasing, 
development, production, and transportation of oil and gas in and from 
          the Coastal Plain of Alaska, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 23, 2006

Mrs. Musgrave introduced the following bill; which was referred to the 
   Committee on Ways and Means, and in addition to the Committee on 
 Resources, 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 suspend the Federal highway fuels taxes, to authorize the leasing, 
development, production, and transportation of oil and gas in and from 
          the Coastal Plain of Alaska, and for other purposes.

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

SECTION 1. SUSPENSION OF HIGHWAY FUELS TAXES.

    (a) Suspension of Highway Fuel Taxes on Gasoline, Diesel Fuel, and 
Kerosene.--
            (1) In general.--Section 4081 of the Internal Revenue Code 
        of 1986 (relating to imposition of tax on gasoline, diesel 
        fuel, and kerosene) is amended by adding at the end the 
        following new subsection:
    ``(f) Suspension of Taxes on Gasoline, Diesel Fuel, and Kerosene.--
            ``(1) In general.--During the suspension period, each rate 
        of tax referred to in paragraph (2) shall be reduced to zero 
        cents per gallon.
            ``(2) Rates of tax.--The rates of tax referred to in this 
        paragraph are the rates of tax otherwise applicable under--
                    ``(A) clauses (i) and (iii) of subsection (a)(2)(A) 
                (relating to gasoline, diesel fuel, and kerosene), 
                determined after application of subsection (a)(2)(B) 
                and without regard to subsection (a)(2)(C), and
                    ``(B) paragraph (1) of section 4041(a) (relating to 
                diesel fuel and kerosene) with respect to fuel sold for 
                use or used in a diesel-powered highway vehicle.
            ``(3) Suspension period.--For purposes of this subsection, 
        the term `suspension period' means the 90-day period beginning 
        on the day after the date of the enactment of this subsection.
            ``(4) Maintenance of trust fund deposits.--In determining 
        the amounts to be appropriated to the Highway Trust Fund under 
        section 9503 and to the Leaking Underground Storage Tank Trust 
        Fund under section 9508, an amount equal to the reduction in 
        revenues to the Treasury by reason of this subsection shall be 
        treated as taxes received in the Treasury under this section or 
        section 4041.''.
            (2) Effective date.--The amendment made by this subsection 
        shall take effect on the date of the enactment of this Act.
    (b) 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 the suspension period in 
                effect under section 4081(f) of the Internal Revenue 
                Code of 1986 (as added by subsection (a) of this 
                section).
                    (B) Highway motor fuel.--The term ``highway motor 
                fuel'' has the meaning given such term for purposes of 
                subsection (c).
                    (C) 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.
    (c) 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'' means any liquid on which tax would have been 
                imposed under section 4081 of the Internal Revenue Code 
                of 1986 during the suspension period in effect under 
                section 4081(f) of such Code but for the amendments 
                made by subsection (a).
                    (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. 2. OIL AND GAS LEASING PROGRAM.

    (a) Definitions.--In this section:
            (1) Coastal plain.--The term ``Coastal Plain'' means the 
        area identified as the Coastal Plain on the map prepared by the 
        United States Geological Survey, entitled ``Arctic National 
        Wildlife Refuge 1002 Coastal Plain Area'', dated September 
        2005, and on file with the United States Geological Survey.
            (2) Secretary.--The term ``Secretary'' means the Secretary 
        of the Interior, acting through the Bureau of Land Management.
    (b) Program.--
            (1) In general.--Congress--
                    (A) authorizes the leasing, development, 
                production, and transportation of oil and gas in and 
                from the Coastal Plain; and
                    (B) directs the Secretary to take such actions as 
                are necessary to--
                            (i) establish and implement an 
                        environmentally sound competitive oil and gas 
                        leasing program to carry out the activities 
                        authorized under subparagraph (A); and
                            (ii) conduct 2 lease sales before October 
                        1, 2010.
            (2) Administration.--The Secretary shall administer this 
        section through regulations, lease terms, conditions, 
        restrictions, prohibitions, stipulations, and other provisions 
        that ensure the oil and gas exploration, development, 
        production, and transportation activities on the Coastal Plain 
        are carried out in a manner that will ensure the receipt of 
        fair market value by the public for the mineral resources to be 
        leased.
    (c) 2 Lease Sales Before Fiscal Year 2011.--
            (1) In general.--In order to enable the Secretary to hold 2 
        lease sales before October 1, 2010, this subsection shall apply 
        with respect to the oil and gas leasing program established by 
        the Secretary pursuant to this section.
            (2) Purposes.--For purposes of the National Wildlife Refuge 
        System Administration Act of 1966 (16 U.S.C. 668dd et seq.) and 
        amendments made by that Act, the oil and gas leasing program 
        and activities authorized by this section in the Coastal Plain 
        are deemed to be compatible with the purposes for which the 
        Arctic National Wildlife Refuge was established, and no further 
        findings or decisions are required to implement this 
        determination of compatibility.
            (3) Prelease activities.--The Final Legislative 
        Environmental Impact Statement on the Coastal Plain dated April 
        1987 and prepared pursuant to section 1002 of the Alaska 
        National Interest Lands Conservation Act (16 U.S.C. 3142) and 
        section 102(2)(C) of the National Environmental Policy Act of 
        1969 (42 U.S.C. 4332(2)(C)) is deemed to satisfy the 
        requirements under the National Environmental Policy Act of 
        1969 (42 U.S.C. 4321 et seq.) that apply with respect to 
        prelease activities, including actions authorized to be taken 
        by the Secretary to develop and promulgate regulations for the 
        establishment of the leasing program authorized by this section 
        before the conduct of the first lease sale.
            (4) Preferred action.--
                    (A) Nonleasing alternatives.--With respect to any 
                environmental impact statement prepared by the 
                Secretary under the National Environmental Policy Act 
                of 1969 (42 U.S.C. 4321 et seq.) with respect to any 
                lease sale conducted under the leasing program 
                authorized by this section, the Secretary is not 
                required to identify nonleasing alternative courses of 
                action or to analyze the environmental effects of those 
                courses of action.
                    (B) Leasing alternatives.--The Secretary shall only 
                identify a preferred action for leasing and a single 
                leasing alternative, and analyze the environmental 
                effects and potential mitigation measures for the 
                preferred action and leasing alternative.
                    (C) Deadline.--The identification and related 
                analyses required by subparagraph (B) shall be 
                completed within 18 months after the date of enactment 
                of this Act.
                    (D) Public comments.--The Secretary shall only 
                consider public comments that are filed within 30 days 
                after publication of an environmental analysis.
                    (E) Compliance.--Compliance with this paragraph 
                satisfies all requirements of section 102(2)(C) of the 
                National Environmental Policy Act of 1969 (42 U.S.C. 
                4332(2)(C)) for the analysis and consideration of the 
                environmental effects of proposed leasing under this 
                section.
            (5) Expedited judicial review.--
                    (A) Venue; deadline.--Any complaint seeking 
                judicial review of this section or any action of the 
                Secretary under this section shall be filed in the 
                United States Court of Appeals for the District of 
                Columbia--
                            (i) within the 90-day period beginning on 
                        the date of the action being challenged; or
                            (ii) in the case of a complaint based 
                        solely on grounds arising after that period, 
                        within 90 days after the complainant knew or 
                        reasonably should have known of the grounds for 
                        the complaint.
                    (B) Scope.--Judicial review of a decision of the 
                Secretary to conduct a lease sale under this section 
                (including the environmental analysis of the decision) 
                shall be--
                            (i) limited to whether the Secretary has 
                        complied with this section; and
                            (ii) based on the administrative record of 
                        that decision.
    (d) Rights-of-Way.--For purposes of section 1102(4)(A) of the 
Alaska National Interest Lands Conservation Act (16 U.S.C. 3162(4)(A)), 
any rights-of-way or easements across the Coastal Plain for the 
exploration, development, production, or transportation of oil and gas 
shall be considered to be established incident to the management of the 
Coastal Plain under this section.
    (e) Maximum Surface Acreage.--In administering this section, the 
Secretary shall ensure that the maximum quantity of surface acreage 
covered by production and support facilities (including airstrips and 
any area covered by gravel berms or piers for support of pipelines) 
does not exceed 2,000 acres on the Coastal Plain.
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