[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5874 Introduced in House (IH)]








109th CONGRESS
  2d Session
                                H. R. 5874

 To direct the Secretary of the Interior to suspend the application of 
  any provision of Federal law under which any person is given relief 
 from any requirement to pay royalty for production oil or natural gas 
    from Federal lands (including submerged lands), for production 
occurring in any period in which the market price of production exceeds 
                certain prices, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 25, 2006

 Mr. Carnahan introduced the following bill; which was referred to the 
   Committee on Ways and Means, and in addition to the Committees on 
 Resources and Science, 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 direct the Secretary of the Interior to suspend the application of 
  any provision of Federal law under which any person is given relief 
 from any requirement to pay royalty for production oil or natural gas 
    from Federal lands (including submerged lands), for production 
occurring in any period in which the market price of production exceeds 
                certain prices, 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. SHORT TITLE.

    This Act may be cited as the ``Consumer Relief and Investment in 
Our Future Act''.

SEC. 2. REQUIREMENT TO SUSPEND ROYALTY RELIEF.

    (a) Requirement to Suspend.--The Secretary of the Interior shall 
suspend the application of any provision of Federal law under which any 
person is given relief from any requirement to pay royalty for 
production oil or natural gas from Federal lands (including submerged 
lands), for production occurring in any period after the date of the 
enactment of this Act with respect to which--
            (1) in the case of production of oil, the average price of 
        crude oil in the United States over the most recent 4 
        consecutive weeks is greater than $34.71 per barrel; and
            (2) in the case of production of natural gas, the average 
        wellhead price of natural gas in the United States over the 
        most recent 4 consecutive weeks is greater than $4.34 per 
        thousand cubic feet.
    (b) Determination of Market Price.--The Secretary shall determine 
average prices for purposes of subsection (a) based on the most recent 
data reported by the Energy Information Administration of the 
Department of Energy.

SEC. 3. RENEGOTIATION OF EXISTING LEASES.

    (a) Requirement.--The Secretary of the Interior shall seek to 
renegotiate each existing lease authorizing production of oil or 
natural gas on Federal land (including submerged land) that was issued 
by the Department of the Interior before the date of the enactment of 
this Act as necessary to modify the terms of such lease to ensure that 
any suspension of a requirement to pay royalties under such lease does 
not apply to production referred to in section 2(a).
    (b) Failure to Renegotiate and Modify.--After the end of the 1-year 
period beginning on the date of the enactment of this Act, a person who 
is a lessee under an existing lease referred to in subsection (a) shall 
not be eligible to enter into any new lease that authorizes production 
of oil or natural gas on Federal land (including submerged land), and 
shall not be eligible to obtain by sale or other transfer any lease 
issued before the end of such period, unless such person renegotiates 
such existing lease and enters into an agreement with the Secretary 
that modifies the terms of the existing lease as provided in subsection 
(a).

SEC. 4. USE OF ROYALTIES RECEIVED AS RESULT OF SUSPENSION OF ROYALTY 
              RELIEF.

    (a) Deposit of Royalties.--Amounts received by the United States as 
royalty for production of oil or natural gas from Federal lands 
(including submerged lands) shall be deposited into a separate account 
in the Treasury.
    (b) Availability of Deposited Amounts.--Amounts in the account 
referred to in subsection (a) shall be available to the Secretary of 
Energy, without further appropriation, to be divided equally among the 
following programs:
            (1) The biomass programs administered by the Assistant 
        Secretary of Energy for Energy Efficiency and Renewable Energy.
            (2) The FreedomCAR and Vehicle Technologies Program 
        administered by the Assistant Secretary of Energy for Energy 
        Efficiency and Renewable Energy, 25 percent of which shall be 
        for the Clean Cities Program.
            (3) The Hydrogen, Fuel Cells, and Infrastructure Program 
        administered by the Assistant Secretary of Energy for Energy 
        Efficiency and Renewable Energy.

SEC. 5. ADVANCED TECHNOLOGY PROGRAM.

    There are authorized to be appropriated to the Secretary of 
Commerce for the National Institute of Standards and Technology's 
Advanced Technology Program--
            (1) $464,000,000 for fiscal year 2007;
            (2) $823,000,000 for fiscal year 2008;
            (3) $1,092,000,000 for fiscal year 2009;
            (4) $1,156,000,000 for fiscal year 2010;
            (5) $1,151,000,000 for fiscal year 2011;
            (6) $1,052,000,000 for fiscal year 2012;
            (7) $1,177,000,000 for fiscal year 2013;
            (8) $1,132,000,000 for fiscal year 2014; and
            (9) $1,149,000,000 for fiscal year 2015.

SEC. 6. WINDFALL PROFITS TAX.

    (a) In General.--Subtitle E of the Internal Revenue Code of 1986 
(relating to alcohol, tobacco, and certain other excise taxes) is 
amended by adding at the end the following new chapter:

              ``CHAPTER 56--WINDFALL PROFITS ON CRUDE OIL

``Sec. 5896. Imposition of tax.
``Sec. 5897. Windfall profit; removal price; base price; qualified 
                            investment.
``Sec. 5898. Special rules and definitions.

``SEC. 5896. IMPOSITION OF TAX.

    ``(a) In General.--In addition to any other tax imposed under this 
title, there is hereby imposed on any integrated oil company (as 
defined in section 291(b)(4)) an excise tax equal to the excess of--
            ``(1) the amount equal to 50 percent of the windfall profit 
        from all barrels of taxable crude oil removed from the property 
        during each taxable year, over
            ``(2) the amount of qualified investment by such company 
        during such taxable year.
    ``(b) Fractional Part of Barrel.--In the case of a fraction of a 
barrel, the tax imposed by subsection (a) shall be the same fraction of 
the amount of such tax imposed on the whole barrel.
    ``(c) Tax Paid by Producer.--The tax imposed by this section shall 
be paid by the producer of the taxable crude oil.

``SEC. 5897. WINDFALL PROFIT; REMOVAL PRICE; BASE PRICE; QUALIFIED 
              INVESTMENT.

    ``(a) General Rule.--For purposes of this chapter, the term 
`windfall profit' means the excess of the removal price of the barrel 
of taxable crude oil over the base price of such barrel.
    ``(b) Removal Price.--For purposes of this chapter--
            ``(1) In general.--Except as otherwise provided in this 
        subsection, the term `removal price' means the amount for which 
        the barrel of taxable crude oil is sold.
            ``(2) Sales between related persons.--In the case of a sale 
        between related persons, the removal price shall not be less 
        than the constructive sales price for purposes of determining 
        gross income from the property under section 613.
            ``(3) Oil removed from property before sale.--If crude oil 
        is removed from the property before it is sold, the removal 
        price shall be the constructive sales price for purposes of 
        determining gross income from the property under section 613.
            ``(4) Refining begun on property.--If the manufacture or 
        conversion of crude oil into refined products begins before 
        such oil is removed from the property--
                    ``(A) such oil shall be treated as removed on the 
                day such manufacture or conversion begins, and
                    ``(B) the removal price shall be the constructive 
                sales price for purposes of determining gross income 
                from the property under section 613.
            ``(5) Property.--The term `property' has the meaning given 
        such term by section 614.
    ``(c) Base Price Defined.--For purposes of this chapter, the term 
`base price' means $40 for each barrel of taxable crude oil.
    ``(d) Qualified Investment.--For purposes of this chapter, the term 
`qualified investment' means any amount paid or incurred with respect 
to any qualified facility described in paragraph (1), (2), (3), or (4) 
of section 45(d) (determined without regard to any placed in service 
date).

``SEC. 5898. SPECIAL RULES AND DEFINITIONS.

    ``(a) Withholding and Deposit of Tax.--The Secretary shall provide 
such rules as are necessary for the withholding and deposit of the tax 
imposed under section 5896 on any taxable crude oil.
    ``(b) Records and Information.--Each taxpayer liable for tax under 
section 5896 shall keep such records, make such returns, and furnish 
such information (to the Secretary and to other persons having an 
interest in the taxable crude oil) with respect to such oil as the 
Secretary may by regulations prescribe.
    ``(c) Return of Windfall Profit Tax.--The Secretary shall provide 
for the filing and the time of such filing of the return of the tax 
imposed under section 5896.
    ``(d) Definitions.--For purposes of this chapter--
            ``(1) Producer.--The term `producer' means the holder of 
        the economic interest with respect to the crude oil.
            ``(2) Crude oil.--
                    ``(A) In general.--The term `crude oil' includes 
                crude oil condensates and natural gasoline.
                    ``(B) Exclusion of newly discovered oil.--Such term 
                shall not include any oil produced from a well drilled 
                after the date of the enactment of the Consumer Relief 
                and Investment in Our Future Act, except with respect 
                to any oil produced from a well drilled after such date 
                on any proven oil or gas property (within the meaning 
                of section 613A(c)(9)(A)).
            ``(3) Barrel.--The term `barrel' means 42 United States 
        gallons.
    ``(e) Adjustment of Removal Price.--In determining the removal 
price of oil from a property in the case of any transaction, the 
Secretary may adjust the removal price to reflect clearly the fair 
market value of oil removed.
    ``(f) Regulations.--The Secretary shall prescribe such regulations 
as may be necessary or appropriate to carry out the purposes of this 
chapter.
    ``(g) Termination.--This chapter shall not apply to taxable crude 
oil removed after the date which is 1 year after the date of the 
enactment of this section.''.
    (b) Transfer of Windfall Profit Tax Receipts to Highway Trust 
Fund.--Paragraph (1) of section 9503(b) of the Internal Revenue Code of 
1986 is amended by striking ``and'' at the end of subparagraph (D), by 
striking the period at the end of subparagraph (E) and inserting ``, 
and'', and by inserting after subparagraph (E) the following new 
subparagraph:
                    ``(F) section 5896 (relating to windfall profits 
                tax on crude oil).''.
    (c) Deductibility of Windfall Profit Tax.--The first sentence of 
section 164(a) of the Internal Revenue Code of 1986 (relating to 
deduction for taxes) is amended by inserting after paragraph (5) the 
following new paragraph:
            ``(6) The windfall profit tax imposed by section 5896.''.
    (d) Clerical Amendment.--The table of chapters for subtitle E of 
the Internal Revenue Code of 1986 is amended by adding at the end the 
following new item:

             ``Chapter 56. Windfall Profit on Crude Oil.''.

    (e) Effective Date.--
            (1) In general.--The amendments made by this section shall 
        apply to crude oil removed after the date of the enactment of 
        this Act, in taxable years ending after such date.
            (2) Transitional rules.--For the period ending on the date 
        which is one year after the date of the enactment of this Act, 
        the Secretary of the Treasury or the Secretary's delegate shall 
        prescribe rules relating to the administration of chapter 56 of 
        the Internal Revenue Code of 1986. To the extent provided in 
        such rules, such rules shall supplement or supplant for such 
        period the administrative provisions contained in chapter 56 of 
        such Code (or in so much of subtitle F of such Code as relates 
        to such chapter 56).

SEC. 7. REDUCTION OF FUEL TAXES ON HIGHWAY MOTOR FUELS.

    (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) Reduction of Highway Motor Fuel Taxes.--
            ``(1) In general.--During the reduction period, the rate of 
        tax imposed by section 4041 (other than subsection (d) thereof) 
        or 4081(a)(2)(A) on highway motor fuel shall be reduced by 10 
        cents per gallon.
            ``(2) Definitions and special rule.--For purposes of this 
        subsection--
                    ``(A) Reduction period.--The term `reduction 
                period' means the 1-year period beginning on the date 
                of enactment of the Consumer Relief and Investment in 
                Our Future Act.
                    ``(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) Effective Date.--The amendment made by subsection (a) shall 
take effect on the date of the enactment of this Act.
    (c) 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 the 
        Highway Trust Fund an amount equal to the excess (if any) of--
                    (A) the amount (but for this subsection) of reduced 
                revenues received in the Highway Trust Fund as a result 
                of a reduction in a rate of tax by reason of section 
                4081(f)(1) of the Internal Revenue Code of 1986 (as 
                added by subsection (a), over
                    (B) amounts appropriated to the Highway Trust Fund 
                by section 9503(b)(1)(F) of the Internal Revenue Code 
                of 1986 (relating to windfall profits tax on crude 
                oil).
            (2) Special rules.--Amounts appropriated by paragraph (1) 
        to the Highway 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).
    (d) Floor Stock Refunds.--
            (1) In general.--If--
                    (A) before the tax rate reduction 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 section 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 rate reduction date based on a request 
                submitted to the taxpayer before the date which is 3 
                months after the tax rate reduction 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 section 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 rate reduction date.--The term ``tax rate 
                reduction date'' means the first day of the reduction 
                period (as defined in section 4081(f) of the Internal 
                Revenue Code of 1986 (as added by subsection (a))).
                    (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 end of 
                the reduction 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 paragraph.
                    (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 clause (i) 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 4081 of 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 sections.

SEC. 8. REPEAL OF CERTAIN TAX PROVISIONS OF THE ENERGY POLICY ACT OF 
              2005.

    (a) Repeal.--The following provisions, and amendments made by such 
provisions, of the Energy Policy Act of 2005 are hereby repealed:
            (1) Section 1306 (relating to credit for production from 
        advanced nuclear power facilities).
            (2) Section 1307 (relating to credit for investment in 
        clean coal facilities).
            (3) Section 1308 (relating to electric transmission 
        property treated as 15-year property).
            (4) Section 1309 (relating to expansion of amortization for 
        certain atmospheric pollution control facilities in connection 
        with plants first placed in service after 1975).
            (5) Section 1310 (relating to modifications to special 
        rules for nuclear decommissioning costs).
            (6) Section 1321 (relating to extension of credit for 
        producing fuel from a non-conventional source for facilities 
        producing coke or coke gas).
            (7) Section 1323 (relating to temporary expensing for 
        equipment used in refining of liquid fuels).
            (8) Section 1325 (relating to natural gas distribution 
        lines treated as 15-year property).
            (9) Section 1326 (relating to natural gas gathering lines 
        treated as 7-year property).
            (10) Section 1328 (relating to determination of small 
        refiner exception to oil depletion deduction).
            (11) Section 1329 (relating to amortization of geological 
        and geophysical expenditures).
    (b) Administration of Internal Revenue Code of 1986.--The Internal 
Revenue Code of 1986 shall be applied and administered as if the 
provisions, and amendments, specified in subsection (a) had never been 
enacted.
                                 <all>