109 HR 5462 IH: To suspend the Federal highway fuels taxes, to authorize U.S. House of Representatives 2006-05-23 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.

I 109th CONGRESS 2d Session H. R. 5462 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.

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.

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.