I 111th CONGRESS 2d Session H. R. 5780 IN THE HOUSE OF REPRESENTATIVES July 20, 2010 Mr. Peters (for himself and Mr. Welch) introduced the following bill; which was referred to the Committee on Energy and Commerce, and in addition to the Committees on Natural Resources, Ways and Means, Transportation and Infrastructure, and Science and Technology, 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 deficits and Government spending through the elimination of wasteful energy subsidies and programs.

1.

Short title

This Act may be cited as the Reduce and End our Deficits Using Commonsense Eliminations in the Energy Program Act of 2010.

2.

Termination of payments to certified States and Indian tribes under abandoned mine lands program

The Surface Mining Control and Reclamation Act of 1977 (30 U.S.C. 1201 et seq.) is amended— (1)in section 402(g)(1)(A)(ii), by striking or pursuant and all that follows through the end of the sentence and inserting a period; (2)in section 402(g)(1)(B)(ii), by striking or pursuant and all that follows through the end of the sentence and inserting a period; and (3)by amending section 411 to read as follows:

411.

Certification

(a)

Certification required

The Secretary shall determine and certify if on the basis of the inventory referred to in section 403(c) all reclamation projects relating to the priorities described in section 403(a) for eligible land and water pursuant to section 404 in a State or of a tribe have been completed. (b)

Notice and comment

The Secretary shall publish notice in the Federal Register and provide an opportunity for public comment regarding any certification under subsection (a). (c)

Limitation on payments to certified States and Indian tribes

(1)

In general

Except as provided in paragraph (2), and notwithstanding any other provision of this Act, no payment may be made under this Act to a State or Indian tribe for which a determination and certification is required under subsection (a). (2)

Payments for health benefits not affected

Paragraph (1) shall not apply with respect to payments under subsections (h) and (i) of section 402.

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3.

Terminate Oil and Gas Company Tax Preferences

(a)

Repeal enhanced oil recovery credit

Section 43 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection: (f)

Termination

This section shall not apply to any amount, costs, or expenses paid or incurred after the date of the enactment of this subsection. . (b)

Repeal credit for oil and gas produced from marginal wells

Section 45I of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection: (e)

Termination

This section shall not apply to any production after December 31, 2010. . (c)

Repeal expensing of intangible drilling costs

Subsection (c) of section 263 of the Internal Revenue Code of 1986 is amended by adding at the end the following new sentence: This subsection shall not apply to any expense relating to an oil or gas well paid or incurred after December 31, 2010.. (d)

Repeal deduction for tertiary injectants

Section 193 of such Code is amended by adding at the end the following new subsection: (d)

Termination

Subsection (a) shall not apply to any amount paid or incurred after the date of the enactment of this subsection. . (e)

Repeal exception to passive loss limitation for working interests in oil and natural gas properties

Subsection (c) of section 469 of such Code is amended by striking paragraph (3) (relating to working interests in oil and gas property). (f)

Repeal percentage depletion for oil and natural gas wells

(1)

In general

Section 613A of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection: (f)

Termination

After December 31, 2010, this section and section 611 shall not apply to any oil or gas well. . (2)

Conforming amendment

Section 613A(c)(1) of such Code is amended by striking subsection (d) and inserting subsections (d) and (f). (g)

Repeal domestic manufacturing tax deduction for oil and natural gas companies

(1)

In general

Subparagraph (B) of section 199(c)(4) of such Code is amended by striking and at the end of clause (ii), by striking the period at the end of clause (iii) and inserting , and, and by inserting after clause (iii) the following: (iv)production or extraction relating to any oil or gas. . (2)

Conforming amendment

Section 199(c)(4)(A)(i)(III) of such Code is amended by striking , natural gas,. (h)

Increase geological and geophysical amortization period for independent producers to seven years

(1)

In general

Paragraphs (1) and (4) of section 167(h) of such Code is amended by striking 24-month both places it appears and inserting 7-year. (2)

Conforming amendment

Section 167(h) of such Code is amended by striking paragraph (5). (i)

Effective date

(1)The amendments made by subsection (a), (c), (e), and (f) shall apply to amounts paid or incurred in taxable years beginning after December 31, 2010. (2)The amendments made by subsections (b), (d), (g), and (h) shall apply to amounts paid or incurred in taxable years beginning after December 31, 2010.

4.

Department of Energy oil and gas research and development

Sections 965 through 967 of the Energy Policy Act of 2005 (42 U.S.C. 16295–16297) are repealed.

5.

Nuclear waste repository

The Secretary of Energy shall discontinue the application before the Nuclear Regulatory Commission for a license to construct a high-level nuclear waste geologic repository at Yucca Mountain, Nevada.

6.

Sale of certain SEPA and TVA facilities

(a)

Sale of Southeastern Power Administration and TVA facilities

(1)

Southeastern Power Administration and related facilities

(A)

Sale of Southeastern Power Administration and related power generating assets

The Secretary of Energy shall develop and carry out a plan to provide for the sale of the electric energy generation facilities that are currently owned and operated by Federal departments and agencies under the supervision of, or working in coordination with, the Southeastern Power Administration, together with any and all other assets, rights, interests, and obligations held or owned by the Southeastern Power Administration. The heads of other affected Federal departments and agencies shall assist the Secretary of Energy in implementing the sales authorized by this subparagraph. (B)

Exclusion of dams and reservoirs

The authority of the Secretary of Energy under subparagraph (A) shall apply with respect to facilities for the generation of electric energy, including turbines, generators, controls, and substations, and shall not apply with respect to any dam, reservoir, or waterfront property. (C)

Report to Congress

At least 60 days before implementing a plan developed under this paragraph, the Secretary of Energy shall submit to Congress a report containing the plan. (2)

TVA facilities

(A)

Sale of power program

The Tennessee Valley Authority shall develop and carry out a plan to provide for the sale of the rights and assets of its electric power program. (B)

Hydroelectric facility exclusion

The authority of the Tennessee Valley Authority under subparagraph (A) shall not apply with respect to any hydroelectric power generation facility owned and operated by the Authority (including dams and appurtenant works and structures). (C)

Report to Congress

At least 60 days before implementing a plan developed under this paragraph, the Tennessee Valley Authority shall submit to Congress a report containing the plan. (b)

Proceeds

The proceeds of any sale under this section shall be used first to offset the costs of carrying out the sale and the remaining net proceeds shall be deemed to extinguish the outstanding debt repayable to the United States and attributable to the assets being sold. Any portion of the net proceeds that exceeds the net present value of the outstanding debt repayable to the United States and attributable to the assets being sold shall be deposited in the Treasury of the United States as miscellaneous receipts. (c)

Treatment of sales for purposes of certain laws

A sale of assets under this section shall not be considered a disposal of Federal surplus property under subchapter III of chapter 5 of title 40, United States Code, or any other applicable provision of law. (d)

Date of sale

To be extent practicable, all sales under this section shall be completed before December 31, 2010. (e)

Termination of the Southeastern Power Administration

Following the sale of the assets referred to in subsection (a)(1), the Secretary of Energy shall complete the business of and close out the Southeastern Power Administration and return any unexpended balances of funds appropriated for the Southeastern Power Administration to the Treasury of the United States.

7.

Volume of Strategic Petroleum Reserve

Section 154(a) of the Energy Policy and Conservation Act (42 U.S.C. 6234(a)) is amended by striking 1 billion and inserting 650,000,000.

8.

Ultra-deepwater and unconventional natural gas and other petroleum resources

Sections 999A through 999H of the Energy Policy Act of 2005 (42 U.S.C. 16371–16378) are repealed.