[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[S. 1167 Introduced in Senate (IS)]

<DOC>






117th CONGRESS
  1st Session
                                S. 1167

       To eliminate certain subsidies for fossil-fuel production.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             April 15, 2021

Mr. Sanders (for himself, Mr. Merkley, Mr. Markey, Mr. Booker, Mr. Van 
 Hollen, and Ms. Warren) introduced the following bill; which was read 
             twice and referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
       To eliminate certain subsidies for fossil-fuel production.

    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 ``End Polluter Welfare Act of 2021''.

SEC. 2. TABLE OF CONTENTS.

    The table of contents for this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.
Sec. 3. Definition of fossil fuel.
Sec. 4. Royalty relief.
Sec. 5. Royalties under Mineral Leasing Act.
Sec. 6. Elimination of interest payments for royalty overpayments.
Sec. 7. Removal of limits on liability for offshore facilities and 
                            pipeline operators.
Sec. 8. Restrictions on use of appropriated funds by international 
                            financial institutions for projects that 
                            support fossil fuel.
Sec. 9. Fossil Energy Research and Development Program.
Sec. 10. Advanced Research Projects Agency--Energy.
Sec. 11. Incentives for innovative technologies.
Sec. 12. Rural Utility Service loan guarantees.
Sec. 13. Prohibition on use of funds by the United States International 
                            Development Finance Corporation or the 
                            Export-Import Bank of the United States for 
                            financing projects, transactions, or other 
                            activities that support fossil fuel.
Sec. 14. Transportation funds for grants, loans, loan guarantees, and 
                            other direct assistance.
Sec. 15. Elimination of exclusion of certain lenders as owners or 
                            operators under CERCLA.
Sec. 16. Termination of various tax expenditures relating to fossil 
                            fuels.
Sec. 17. Termination of certain deductions and credits related to 
                            fossil fuels.
Sec. 18. Uniform seven-year amortization for geological and geophysical 
                            expenditures.
Sec. 19. Natural gas gathering lines treated as 15-year property.
Sec. 20. Termination of last-in, first-out method of inventory for oil, 
                            natural gas, and coal companies.
Sec. 21. Repeal of percentage depletion for coal and hard mineral 
                            fossil fuels.
Sec. 22. Termination of capital gains treatment for royalties from 
                            coal.
Sec. 23. Modifications of foreign tax credit rules applicable to oil 
                            and gas industry taxpayers receiving 
                            specific economic benefits.
Sec. 24. Increase in oil spill liability trust fund financing rate.
Sec. 25. Application of certain environmental taxes to synthetic crude 
                            oil.
Sec. 26. Denial of deduction for removal costs and damages for certain 
                            oil spills.
Sec. 27. Tax on crude oil and natural gas produced from the outer 
                            Continental Shelf in the Gulf of Mexico.
Sec. 28. Repeal of corporate income tax exemption for publicly traded 
                            partnerships with qualifying income and 
                            gains from activities relating to fossil 
                            fuels.
Sec. 29. Amortization of qualified tertiary injectant expenses.
Sec. 30. Amortization of development expenditures.
Sec. 31. Amortization of certain mining exploration expenditures.
Sec. 32. Amortization of intangible drilling and development costs in 
                            the case of oil and gas wells and 
                            geothermal wells.
Sec. 33. Permanent excise tax rate for funding of Black Lung Disability 
                            Trust Fund.
Sec. 34. Termination of renewable electricity production credit 
                            eligibility for refined coal.
Sec. 35. Treatment of foreign oil related income as subpart F income.
Sec. 36. Repeal of exclusion of foreign oil and gas extraction income 
                            from the determination of tested income.
Sec. 37. Termination of credit for carbon oxide sequestration.
Sec. 38. Powder River Basin.
Sec. 39. Study and elimination of additional fossil fuel subsidies.

SEC. 3. DEFINITION OF FOSSIL FUEL.

    In this Act, the term ``fossil fuel'' means coal, petroleum, 
natural gas, or any derivative of coal, petroleum, or natural gas that 
is used for fuel.

SEC. 4. ROYALTY RELIEF.

    (a) In General.--
            (1) Outer continental shelf lands act.--Section 8(a)(3) of 
        the Outer Continental Shelf Lands Act (43 U.S.C. 1337(a)(3)) is 
        amended--
                    (A) by striking subparagraph (B); and
                    (B) by redesignating subparagraph (C) as 
                subparagraph (B).
            (2) Energy policy act of 2005.--
                    (A) Incentives for natural gas production from deep 
                wells in the shallow waters of the gulf of mexico.--
                Section 344 of the Energy Policy Act of 2005 (42 U.S.C. 
                15904) is repealed.
                    (B) Deep water production.--Section 345 of the 
                Energy Policy Act of 2005 (42 U.S.C. 15905) is 
                repealed.
    (b) Future Provisions.--Notwithstanding any other provision of law, 
royalty relief shall not be permitted under a lease issued under 
section 8 of the Outer Continental Shelf Lands Act (43 U.S.C. 1337).

SEC. 5. ROYALTIES UNDER MINERAL LEASING ACT.

    (a) Coal Leases.--Section 7(a) of the Mineral Leasing Act (30 
U.S.C. 207(a)) is amended in the fourth sentence by striking ``12\1/2\ 
per centum'' and inserting ``18\3/4\ percent''.
    (b) Leases on Land on Which Oil or Natural Gas Is Discovered.--
Section 14 of the Mineral Leasing Act (30 U.S.C. 223) is amended in the 
fourth sentence by striking ``12\1/2\ per centum'' and inserting 
``18\3/4\ percent''.
    (c) Leases on Land Known or Believed To Contain Oil or Natural 
Gas.--Section 17 of the Mineral Leasing Act (30 U.S.C. 226) is 
amended--
            (1) in subsection (b)--
                    (A) in paragraph (1)(A), in the fifth sentence, by 
                striking ``12.5 percent'' and inserting ``18\3/4\ 
                percent''; and
                    (B) in paragraph (2)(A)(ii), by striking ``12\1/2\ 
                per centum'' and inserting ``18\3/4\ percent'';
            (2) in subsection (c)(1), in the second sentence, by 
        striking ``12.5 percent'' and inserting ``18\3/4\ percent'';
            (3) in subsection (l), by striking ``12\1/2\ per centum'' 
        each place it appears and inserting ``18\3/4\ percent''; and
            (4) in subsection (n)(1)(C), by striking ``12\1/2\ per 
        centum'' and inserting ``18\3/4\ percent''.

SEC. 6. ELIMINATION OF INTEREST PAYMENTS FOR ROYALTY OVERPAYMENTS.

    Section 111 of the Federal Oil and Gas Royalty Management Act of 
1982 (30 U.S.C. 1721) is amended by adding at the end the following:
    ``(k) Payment of Interest.--Interest shall not be paid on any 
overpayment.''.

SEC. 7. REMOVAL OF LIMITS ON LIABILITY FOR OFFSHORE FACILITIES AND 
              PIPELINE OPERATORS.

    Section 1004(a) of the Oil Pollution Act of 1990 (33 U.S.C. 
2704(a)) is amended--
            (1) in paragraph (3), by striking ``plus $75,000,000; and'' 
        and inserting ``and the liability of the responsible party 
        under section 1002;'';
            (2) in paragraph (4)--
                    (A) by inserting ``(except an onshore pipeline 
                transporting diluted bitumen, bituminous mixtures, or 
                any oil manufactured from bitumen)'' after ``for any 
                onshore facility''; and
                    (B) by striking the period at the end and inserting 
                ``; and''; and
            (3) by adding at the end the following:
            ``(5) for any onshore facility transporting diluted 
        bitumen, bituminous mixtures, or any oil manufactured from 
        bitumen, the liability of the responsible party under section 
        1002.''.

SEC. 8. RESTRICTIONS ON USE OF APPROPRIATED FUNDS BY INTERNATIONAL 
              FINANCIAL INSTITUTIONS FOR PROJECTS THAT SUPPORT FOSSIL 
              FUEL.

    (a) Rescission of Unobligated Funds.--
            (1) In general.--Of the unobligated balance of amounts 
        appropriated or otherwise made available for a contribution of 
        the United States to an international financial institution, an 
        amount specified in paragraph (2) shall be rescinded if the 
        institution provides support for a project that supports the 
        production or use of fossil fuels.
            (2) Amount specified.--The amount specified in this 
        paragraph is an amount the Secretary of the Treasury determines 
        to be equivalent to the amount of support provided by an 
        international financial institution described in paragraph (1) 
        for a project that supports the production or use of fossil 
        fuels.
    (b) Prohibition on Use of Future Funds.--No amounts appropriated or 
otherwise made available for a contribution of the United States to an 
international financial institution may be provided to the institution 
unless the institution agrees to not use the amount to provide support 
for any project that supports the production or use of fossil fuels.
    (c) International Financial Institution Defined.--In this section, 
the term ``international financial institution'' has the meaning given 
that term in section 1701(c) of the International Financial 
Institutions Act (22 U.S.C. 262r(c)).

SEC. 9. FOSSIL ENERGY RESEARCH AND DEVELOPMENT PROGRAM.

    (a) Termination of Authority.--Notwithstanding any other provision 
of law, the authority of the Secretary of Energy to carry out the 
Fossil Energy Research and Development Program of the Department of 
Energy is terminated.
    (b) Rescission.--Notwithstanding any other provision of law--
            (1) all amounts made available for the Fossil Energy 
        Research and Development Program that remain unobligated as of 
        the date of enactment of this Act are rescinded; and
            (2) no amounts made available after the date of enactment 
        of this Act for the Fossil Energy Research and Development 
        Program shall be expended, other than such amounts as are 
        necessary to cover costs incurred in terminating ongoing 
        research of the Fossil Energy Research and Development Program, 
        as determined by the Secretary of Energy, in consultation with 
        other appropriate Federal agencies.

SEC. 10. ADVANCED RESEARCH PROJECTS AGENCY--ENERGY.

    None of the funds made available to the Advanced Research Projects 
Agency--Energy shall be used to carry out any project that supports 
fossil fuel.

SEC. 11. INCENTIVES FOR INNOVATIVE TECHNOLOGIES.

    (a) In General.--Section 1703 of the Energy Policy Act of 2005 (42 
U.S.C. 16513) is amended--
            (1) in subsection (b)--
                    (A) by striking paragraphs (2) and (10); and
                    (B) by redesignating paragraphs (3), (4), (5), (6), 
                (7), (8), (9), (11), and (12) as paragraphs (2), (3), 
                (4), (5), (6), (7), (8), (9), and (10), respectively;
            (2) by striking subsection (c); and
            (3) by redesignating subsections (d) through (f) as 
        subsections (c) through (e), respectively.
    (b) Conforming Amendment.--Section 1704 of the Energy Policy Act of 
2005 (42 U.S.C. 16514) is amended--
            (1) by striking subsection (b); and
            (2) by redesignating subsection (c) as subsection (b).

SEC. 12. RURAL UTILITY SERVICE LOAN GUARANTEES.

    Notwithstanding any other provision of law, the Secretary of 
Agriculture may not make a loan under title III of the Rural 
Electrification Act of 1936 (7 U.S.C. 931 et seq.) to an applicant for 
the purpose of carrying out any project that will use fossil fuel.

SEC. 13. PROHIBITION ON USE OF FUNDS BY THE UNITED STATES INTERNATIONAL 
              DEVELOPMENT FINANCE CORPORATION OR THE EXPORT-IMPORT BANK 
              OF THE UNITED STATES FOR FINANCING PROJECTS, 
              TRANSACTIONS, OR OTHER ACTIVITIES THAT SUPPORT FOSSIL 
              FUEL.

    Notwithstanding any other provision of law, no amounts appropriated 
or otherwise made available for the United States International 
Development Finance Corporation or the Export-Import Bank of the United 
States that are available for obligation on or after the date of the 
enactment of this Act may be obligated or expended to support any 
project, transaction, or other activity that supports the production or 
use of fossil fuels.

SEC. 14. TRANSPORTATION FUNDS FOR GRANTS, LOANS, LOAN GUARANTEES, AND 
              OTHER DIRECT ASSISTANCE.

    Notwithstanding any other provision of law, any amounts made 
available to the Department of Transportation (including the Federal 
Railroad Administration) may not be used to award any grant, loan, loan 
guarantee, or provide any other direct assistance to any rail facility 
or port project that transports fossil fuel.

SEC. 15. ELIMINATION OF EXCLUSION OF CERTAIN LENDERS AS OWNERS OR 
              OPERATORS UNDER CERCLA.

    Section 101(20)(F) of the Comprehensive Environmental Response, 
Compensation, and Liability Act of 1980 (42 U.S.C. 9601(20)(F)) is 
amended by adding at the end the following:
                            ``(iii) Ineligible lenders.--The exclusions 
                        under clauses (i) and (ii) shall not apply to a 
                        person that is a lender that is--
                                    ``(I) an investment company 
                                registered under the Investment Company 
                                Act of 1940 (15 U.S.C. 80a-1 et seq.), 
                                investment adviser (as defined in 
                                section 202(a) of the Investment 
                                Advisers Act of 1940 (15 U.S.C. 80b-
                                2(a))), or broker or dealer (as those 
                                terms are defined in section 3(a) of 
                                the Securities Exchange Act of 1934 (15 
                                U.S.C. 78c(a))) with $250,000,000,000 
                                or more in assets under management; or
                                    ``(II) a bank holding company (as 
                                defined in section 2 of the Bank 
                                Holding Company Act of 1956 (12 U.S.C. 
                                1841)) with $10,000,000,000 or more in 
                                total consolidated assets.''.

SEC. 16. TERMINATION OF VARIOUS TAX EXPENDITURES RELATING TO FOSSIL 
              FUELS.

    (a) In General.--Subchapter C of chapter 80 of the Internal Revenue 
Code of 1986 is amended by adding at the end the following new section:

``SEC. 7875. TERMINATION OF CERTAIN PROVISIONS RELATING TO FOSSIL-FUEL 
              INCENTIVES.

    ``(a) In General.--The following provisions shall not apply to 
taxable years beginning after the date of the enactment of the End 
Polluter Welfare Act of 2021:
            ``(1) Section 43 (relating to enhanced oil recovery 
        credit).
            ``(2) Section 45I (relating to credit for producing oil and 
        natural gas from marginal wells).
            ``(3) Section 461(i)(2) (relating to special rule for 
        spudding of oil or natural gas wells).
            ``(4) Section 469(c)(3)(A) (relating to working interests 
        in oil and natural gas property).
            ``(5) Section 613A (relating to limitations on percentage 
        depletion in case of oil and natural gas wells).
    ``(b) Provisions Relating to Property.--The following provisions 
shall not apply to property placed in service after the date of the 
enactment of the End Polluter Welfare Act of 2021:
            ``(1) Section 168(e)(3)(C)(iii) (relating to classification 
        of certain property).
            ``(2) Section 169 (relating to amortization of pollution 
        control facilities) with respect to any atmospheric pollution 
        control facility.
    ``(c) Provisions Relating to Costs and Expenses.--The following 
provisions shall not apply to costs or expenses paid or incurred after 
the date of the enactment of the End Polluter Welfare Act of 2021:
            ``(1) Section 179B (relating to deduction for capital costs 
        incurred in complying with Environmental Protection Agency 
        sulfur regulations).
            ``(2) Section 468 (relating to special rules for mining and 
        solid waste reclamation and closing costs).
    ``(d) Allocated Credits.--No new credits shall be certified under 
section 48A (relating to qualifying advanced coal project credit) or 
section 48B (relating to qualifying gasification project credit) after 
the date of the enactment of the End Polluter Welfare Act of 2021.
    ``(e) Arbitrage Bonds.--Section 148(b)(4) (relating to safe harbor 
for prepaid natural gas) shall not apply to obligations issued after 
the date of the enactment of the End Polluter Welfare Act of 2021.''.
    (b) Conforming Amendments.--
            (1) Section 613(d) of the Internal Revenue Code of 1986 is 
        amended by striking ``Except as provided in section 613A, in 
        the case'' and inserting ``In the case''.
            (2) The table of sections for subchapter C of chapter 90 of 
        such Code is amended by adding at the end the following new 
        item:

``Sec. 7875. Termination of certain provisions relating to fossil-fuel 
                            incentives.''.

SEC. 17. TERMINATION OF CERTAIN DEDUCTIONS AND CREDITS RELATED TO 
              FOSSIL FUELS.

    (a) Special Allowance for Certain Property.--Section 168(k) of the 
Internal Revenue Code of 1986 is amended by adding at the end the 
following:
            ``(11) Fossil fuel property.--
                    ``(A) In general.--This subsection shall not apply 
                with respect to any property which is primarily used 
                for fossil fuel activities and is placed in service 
                during any taxable year beginning after the date of the 
                enactment of the End Polluter Welfare Act of 2021.
                    ``(B) Fossil fuel activities.--For purposes of this 
                paragraph, the term `fossil fuel activities' means the 
                exploration, development, mining or production, 
                processing, refining, transportation (including 
                pipelines transporting gas, oil, or products thereof), 
                distribution, or marketing of coal, petroleum, natural 
                gas, or any derivative of coal, petroleum, or natural 
                gas that is used for fuel.
                    ``(C) Exception.--The property described in 
                subparagraph (A) shall not include any motor vehicle 
                service station or convenience store which does not 
                qualify as a retail motor fuels outlet under subsection 
                (e)(3)(E)(iii).''.
    (b) Qualified Business Income.--Section 199A(c)(3)(B) of the 
Internal Revenue Code of 1986 is amended by adding at the end the 
following:
                            ``(viii) Any item of gain or loss derived 
                        from fossil fuel activities (as defined in 
                        section 168(k)(11)(B)) during any taxable year 
                        beginning after the date of the enactment of 
                        the End Polluter Welfare Act of 2021.''.
    (c) Credit for Increasing Research Activities.--Section 41(d)(4) of 
the Internal Revenue Code of 1986 is amended by adding at the end the 
following:
                    ``(I) Fossil fuel activities.--Any research related 
                to fossil fuel activities (as defined in section 
                168(k)(11)(B)) which is conducted after the date of the 
                enactment of the End Polluter Welfare Act of 2021.''.
    (d) Foreign-Derived Intangible Income.--Subclause (V) of section 
250(b)(3)(A)(i) of the Internal Revenue Code of 1986 is amended to read 
as follows:
                                    ``(V) any income derived from 
                                fossil fuel activities (as defined in 
                                section 168(k)(11)(B)) during any 
                                taxable year beginning after the date 
                                of the enactment of the End Polluter 
                                Welfare Act of 2021, and''.
    (e) Exchange of Real Property Held for Productive Use or 
Investment.--Section 1031(a)(2) of the Internal Revenue Code of 1986 is 
amended to read as follows:
            ``(2) Exceptions.--This subsection shall not apply to--
                    ``(A) any exchange of real property held primarily 
                for sale, or
                    ``(B) any exchange of real property which--
                            ``(i) is used for fossil fuel activities 
                        (as defined in section 168(k)(11)(B)), and
                            ``(ii) occurs after the date of the 
                        enactment of the End Polluter Welfare Act of 
                        2021.''.

SEC. 18. UNIFORM SEVEN-YEAR AMORTIZATION FOR GEOLOGICAL AND GEOPHYSICAL 
              EXPENDITURES.

    (a) In General.--Section 167(h) of the Internal Revenue Code of 
1986 is amended--
            (1) by striking ``24-month period'' each place it appears 
        in paragraphs (1) and (4) and inserting ``84-month period'';
            (2) by striking paragraph (2) and inserting the following:
            ``(2) Mid-month convention.--For purposes of paragraph (1), 
        any payment paid or incurred during any month shall be treated 
        as paid or incurred on the mid-point of such month.''; and
            (3) by striking paragraph (5).
    (b) Effective Date.--The amendments made by this section shall 
apply to amounts paid or incurred after the date of the enactment of 
this Act.

SEC. 19. NATURAL GAS GATHERING LINES TREATED AS 15-YEAR PROPERTY.

    (a) In General.--Section 168(e)(3)(E) of the Internal Revenue Code 
of 1986 is amended by striking ``and'' at the end of clause (vi), by 
striking the period at the end of clause (vii) and inserting ``, and'', 
and by adding at the end the following new clause:
                            ``(viii) any natural gas gathering line the 
                        original use of which commences with the 
                        taxpayer after the date of the enactment of 
                        this clause.''.
    (b) Alternative System.--The table contained in section 
168(g)(3)(B) of the Internal Revenue Code of 1986 is amended by 
inserting after the item relating to subparagraph (E)(vii) the 
following new item:

``(E)(viii) ................................................      22''.
    (c) Conforming Amendment.--Clause (iv) of section 168(e)(3)(C) of 
the Internal Revenue Code of 1986 is amended by inserting ``and on or 
before the date of the enactment of the End Polluter Welfare Act of 
2021'' after ``April 11, 2005''.
    (d) Effective Date.--
            (1) In general.--The amendments made by this section shall 
        apply to property placed in service on and after the date of 
        the enactment of this Act.
            (2) Exception.--The amendments made by this section shall 
        not apply to any property with respect to which the taxpayer or 
        a related party has entered into a binding contract for the 
        construction thereof on or before the date of the introduction 
        of this Act, or, in the case of self-constructed property, has 
        started construction on or before such date.

SEC. 20. TERMINATION OF LAST-IN, FIRST-OUT METHOD OF INVENTORY FOR OIL, 
              NATURAL GAS, AND COAL COMPANIES.

    (a) In General.--Section 472 of the Internal Revenue Code of 1986 
is amended by adding at the end the following new subsection:
    ``(h) Termination for Oil, Natural Gas, and Coal Companies.--
Subsection (a) shall not apply to any taxpayer that is in the trade or 
business of the production, refining, processing, transportation, or 
distribution of oil, natural gas, or coal for any taxable year 
beginning after the date of enactment of the End Polluter Welfare Act 
of 2021.''.
    (b) Additional Termination.--Section 473 of the Internal Revenue 
Code of 1986 is amended by adding at the end the following new 
subsection:
    ``(h) Termination for Oil, Natural Gas, and Coal Companies.--This 
section shall not apply to any taxpayer that is in the trade or 
business of the production, refining, processing, transportation, or 
distribution of oil, natural gas, or coal for any taxable year 
beginning after the date of enactment of the End Polluter Welfare Act 
of 2021.''.
    (c) Change in Method of Accounting.--In the case of any taxpayer 
required by the amendments made by this section to change its method of 
accounting for its first taxable year beginning after the date of 
enactment of this Act--
            (1) such change shall be treated as initiated by the 
        taxpayer; and
            (2) such change shall be treated as made with the consent 
        of the Secretary of the Treasury.
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of enactment of this 
Act.

SEC. 21. REPEAL OF PERCENTAGE DEPLETION FOR COAL AND HARD MINERAL 
              FOSSIL FUELS.

    (a) In General.--Section 613 of the Internal Revenue Code of 1986 
is amended by adding at the end the following new subsection:
    ``(f) Termination With Respect to Coal and Hard Mineral Fossil 
Fuels.--In the case of coal, lignite, and oil shale (other than oil 
shale described in subsection (b)(5)), the allowance for depletion 
shall be computed without reference to this section for any taxable 
year beginning after the date of the enactment of the End Polluter 
Welfare Act of 2021.''.
    (b) Conforming Amendments.--
            (1) Coal and lignite.--Section 613(b)(4) of the Internal 
        Revenue Code of 1986 is amended by striking ``coal, lignite,''.
            (2) Oil shale.--Section 613(b)(2) of such Code is amended 
        to read as follows:
            ``(2) 15 percent.--If, from deposits in the United States, 
        gold, silver, copper, and iron ore.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.

SEC. 22. TERMINATION OF CAPITAL GAINS TREATMENT FOR ROYALTIES FROM 
              COAL.

    (a) In General.--Subsection (c) of section 631 of the Internal 
Revenue Code of 1986 is amended--
            (1) by striking ``coal (including lignite), or iron ore'' 
        and inserting ``iron ore'';
            (2) by striking ``coal or iron ore'' each place it appears 
        and inserting ``iron ore'';
            (3) by striking ``iron ore or coal'' each place it appears 
        and inserting ``iron ore''; and
            (4) by striking ``Coal or'' in the heading.
    (b) Conforming Amendments.--
            (1) The heading of section 631 of the Internal Revenue Code 
        of 1986 is amended by striking ``, coal,''.
            (2) Section 1231(b)(2) of such Code is amended by striking 
        ``, coal,''.
    (c) Effective Date.--The amendments made by this section shall 
apply to dispositions after the date of the enactment of this Act.

SEC. 23. MODIFICATIONS OF FOREIGN TAX CREDIT RULES APPLICABLE TO OIL 
              AND GAS INDUSTRY TAXPAYERS RECEIVING SPECIFIC ECONOMIC 
              BENEFITS.

    (a) In General.--Section 901 of the Internal Revenue Code of 1986 
is amended by redesignating subsection (n) as subsection (o) and by 
inserting after subsection (m) the following new subsection:
    ``(n) Special Rules Relating to Dual Capacity Taxpayers.--
            ``(1) General rule.--Notwithstanding any other provision of 
        this chapter, any amount paid or accrued to a foreign country 
        or possession of the United States for any period by a dual 
        capacity taxpayer which is in the trade or business of the 
        production, refining, processing, transportation, or 
        distribution of fossil fuel shall not be considered a tax--
                    ``(A) if, for such period, the foreign country or 
                possession does not impose a generally applicable 
                income tax, or
                    ``(B) to the extent such amount exceeds the amount 
                (determined in accordance with regulations) which--
                            ``(i) is paid by such dual capacity 
                        taxpayer pursuant to the generally applicable 
                        income tax imposed by the country or 
                        possession, or
                            ``(ii) would be paid if no amount other 
                        than the amount required to be paid by such 
                        taxpayer under the generally applicable income 
                        tax imposed by the country or possession were 
                        paid or accrued by such dual capacity taxpayer.
                Nothing in this paragraph shall be construed to imply 
                the proper treatment of any such amount not in excess 
                of the amount determined under subparagraph (B).
            ``(2) Dual capacity taxpayer.--For purposes of this 
        subsection, the term `dual capacity taxpayer' means, with 
        respect to any foreign country or possession of the United 
        States, a person who--
                    ``(A) is subject to a levy of such country or 
                possession, and
                    ``(B) receives (or will receive) directly or 
                indirectly a specific economic benefit (as determined 
                in accordance with regulations) from such country or 
                possession.
            ``(3) Generally applicable income tax.--For purposes of 
        this subsection--
                    ``(A) In general.--The term `generally applicable 
                income tax' means an income tax (or a series of income 
                taxes) which is generally imposed under the laws of a 
                foreign country or possession on income derived from 
                the conduct of a trade or business within such country 
                or possession.
                    ``(B) Exceptions.--Such term shall not include a 
                tax unless it has substantial application, by its terms 
                and in practice, to--
                            ``(i) persons who are not dual capacity 
                        taxpayers, and
                            ``(ii) persons who are--
                                    ``(I) citizens or residents of the 
                                foreign country or possession, or
                                    ``(II) organized or incorporated 
                                under the laws of the foreign country 
                                or possession.
            ``(4) Fossil fuel.--For purposes of this subsection, the 
        term `fossil fuel' means coal, petroleum, natural gas, or any 
        derivative of coal, petroleum, or natural gas that is used for 
        fuel.''.
    (b) Effective Date.--The amendments made by this section shall 
apply to taxes paid or accrued in taxable years beginning after the 
date of the enactment of this Act.
    (c) Special Rule for Treaties.--Notwithstanding sections 894 or 
7852(d) of the Internal Revenue Code of 1986, the amendments made by 
this section shall apply without regard to any treaty obligation of the 
United States.

SEC. 24. INCREASE IN OIL SPILL LIABILITY TRUST FUND FINANCING RATE.

    (a) In General.--Section 4611 of the Internal Revenue Code of 1986 
is amended--
            (1) in subsection (c)(2)(B)--
                    (A) in clause (i), by striking ``and'' at the end;
                    (B) in clause (ii), by striking the period at the 
                end and inserting ``, and''; and
                    (C) by adding at the end the following:
                            ``(iii) in the case of crude oil received 
                        or petroleum products entered after December 
                        31, 2021, 10 cents a barrel.''; and
            (2) by striking subsection (f) and inserting the following:
    ``(f) Application of Oil Spill Liability Trust Fund Financing 
Rate.--The Oil Spill Liability Trust Fund financing rate under 
subsection (c) shall apply on and after April 1, 2006, or if later, the 
date which is 30 days after the last day of any calendar quarter for 
which the Secretary estimates that, as of the close of that quarter, 
the unobligated balance in the Oil Spill Liability Trust Fund is less 
than $2,000,000,000.''.
    (b) Effective Date.--The amendments made by this section shall 
apply to crude oil received and petroleum products entered after 
December 31, 2021.

SEC. 25. APPLICATION OF CERTAIN ENVIRONMENTAL TAXES TO SYNTHETIC CRUDE 
              OIL.

    (a) In General.--Paragraph (1) of section 4612(a) of the Internal 
Revenue Code of 1986 is amended to read as follows:
            ``(1) Crude oil.--
                    ``(A) In general.--The term `crude oil' includes 
                crude oil condensates, natural gasoline, and synthetic 
                crude oil.
                    ``(B) Synthetic crude oil.--For purposes of 
                subparagraph (A), the term `synthetic crude oil' 
                means--
                            ``(i) any bitumen and bituminous mixtures,
                            ``(ii) any oil derived from bitumen and 
                        bituminous mixtures (including oil derived from 
                        tar sands),
                            ``(iii) any liquid fuel derived from coal, 
                        and
                            ``(iv) any oil derived from kerogen-bearing 
                        sources (including oil derived from oil 
                        shale).''.
    (b) Regulatory Authority To Address Other Types of Crude Oil and 
Petroleum Products.--Subsection (a) of section 4612 of the Internal 
Revenue Code of 1986 is amended by adding at the end the following:
            ``(10) Regulatory authority to address other types of crude 
        oil and petroleum products.--Under such regulations as the 
        Secretary may prescribe, the Secretary may include as crude oil 
        or as a petroleum product subject to tax under section 4611, 
        any fuel feedstock or finished fuel product customarily 
        transported by pipeline, vessel, railcar, or tanker truck if 
        the Secretary determines that--
                    ``(A) the classification of such fuel feedstock or 
                finished fuel product is consistent with the definition 
                of oil under the Oil Pollution Act of 1990, and
                    ``(B) such fuel feedstock or finished fuel product 
                is produced in sufficient commercial quantities as to 
                pose a significant risk of hazard in the event of a 
                discharge.''.
    (c) Technical Amendment.--Paragraph (2) of section 4612(a) of the 
Internal Revenue Code of 1986 is amended by striking ``from a well 
located''.
    (d) Effective Date.--The amendments made by this section shall 
apply to oil and petroleum products received or entered during calendar 
quarters beginning more than 60 days after the date of the enactment of 
this Act.

SEC. 26. DENIAL OF DEDUCTION FOR REMOVAL COSTS AND DAMAGES FOR CERTAIN 
              OIL SPILLS.

    (a) In General.--Section 162(f) of the Internal Revenue Code of 
1986 is amended--
            (1) by redesignating paragraph (5) as paragraph (6); and
            (2) by inserting after paragraph (4) the following:
            ``(5) Expenses for removal costs and damages relating to 
        certain oil spill liability.--Notwithstanding paragraphs (2) 
        and (3), no deduction shall be allowed under this chapter for 
        any costs or damages for which the taxpayer is liable under 
        section 1002 of the Oil Pollution Act of 1990 (33 U.S.C. 
        2702)''.
    (b) Effective Date.--The amendments made by this section shall 
apply with respect to any liability arising in taxable years ending 
after the date of the enactment of this Act.

SEC. 27. TAX ON CRUDE OIL AND NATURAL GAS PRODUCED FROM THE OUTER 
              CONTINENTAL SHELF IN THE GULF OF MEXICO.

    (a) In General.--Subtitle E of the Internal Revenue Code of 1986 is 
amended by adding at the end the following new chapter:

 ``CHAPTER 56--TAX ON SEVERANCE OF CRUDE OIL AND NATURAL GAS FROM THE 
             OUTER CONTINENTAL SHELF IN THE GULF OF MEXICO

``Sec. 5901. Imposition of tax.
``Sec. 5902. Taxable crude oil or natural gas and removal price.
``Sec. 5903. Special rules and definitions.

``SEC. 5901. IMPOSITION OF TAX.

    ``(a) In General.--In addition to any other tax imposed under this 
title, there is hereby imposed a tax equal to 13 percent of the removal 
price of any taxable crude oil or natural gas removed from the premises 
during any taxable period.
    ``(b) Credit for Federal Royalties Paid.--
            ``(1) In general.--There shall be allowed as a credit 
        against the tax imposed by subsection (a) with respect to the 
        production of any taxable crude oil or natural gas an amount 
        equal to the aggregate amount of royalties paid under Federal 
        law with respect to such production.
            ``(2) Limitation.--The aggregate amount of credits allowed 
        under paragraph (1) to any taxpayer for any taxable period 
        shall not exceed the amount of tax imposed by subsection (a) 
        for such taxable period.
    ``(c) Tax Paid by Producer.--The tax imposed by this section shall 
be paid by the producer of the taxable crude oil or natural gas.

``SEC. 5902. TAXABLE CRUDE OIL OR NATURAL GAS AND REMOVAL PRICE.

    ``(a) Taxable Crude Oil or Natural Gas.--For purposes of this 
chapter, the term `taxable crude oil or natural gas' means crude oil or 
natural gas which is produced from Federal submerged lands on the outer 
Continental Shelf in the Gulf of Mexico pursuant to a lease entered 
into with the United States which authorizes the production.
    ``(b) Removal Price.--For purposes of this chapter--
            ``(1) In general.--Except as otherwise provided in this 
        subsection, the term `removal price' means--
                    ``(A) in the case of taxable crude oil, the amount 
                for which a barrel of such crude oil is sold, and
                    ``(B) in the case of taxable natural gas, the 
                amount per 1,000 cubic feet for which such natural gas 
                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 or natural gas removed from property before 
        sale.--If crude oil or natural gas 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.

``SEC. 5903. SPECIAL RULES AND DEFINITIONS.

    ``(a) Administrative Requirements.--
            ``(1) Withholding and deposit of tax.--The Secretary shall 
        provide for the withholding and deposit of the tax imposed 
        under section 5901 on a quarterly basis.
            ``(2) Records and information.--Each taxpayer liable for 
        tax under section 5901 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 or 
        natural gas) with respect to such oil as the Secretary may by 
        regulations prescribe.
            ``(3) Taxable periods; return of tax.--
                    ``(A) Taxable period.--Except as provided by the 
                Secretary, each calendar year shall constitute a 
                taxable period.
                    ``(B) Returns.--The Secretary shall provide for the 
                filing, and the time for filing, of the return of the 
                tax imposed under section 5901.
    ``(b) Definitions.--For purposes of this chapter--
            ``(1) Producer.--The term `producer' means the holder of 
        the economic interest with respect to the crude oil or natural 
        gas.
            ``(2) Crude oil.--The term `crude oil' includes crude oil 
        condensates and natural gasoline.
            ``(3) Premises and crude oil product.--The terms `premises' 
        and `crude oil product' have the same meanings as when used for 
        purposes of determining gross income from the property under 
        section 613.
    ``(c) Adjustment of Removal Price.--In determining the removal 
price of oil or natural gas 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 or natural gas removed.
    ``(d) Regulations.--The Secretary shall prescribe such regulations 
as may be necessary or appropriate to carry out the purposes of this 
chapter.''.
    (b) Deductibility of Tax.--The first sentence of section 164(a) of 
the Internal Revenue Code of 1986 is amended by inserting after 
paragraph (4) the following new paragraph:
            ``(5) The tax imposed by section 5901(a) (after application 
        of section 5901(b)) on the severance of crude oil or natural 
        gas from the outer Continental Shelf in the Gulf of Mexico.''.
    (c) Clerical Amendment.--The table of chapters for subtitle E is 
amended by adding at the end the following new item:

                              ``Chapter 56. Tax on severance of crude 
                                        oil and natural gas from the 
                                        outer Continental Shelf in the 
                                        Gulf of Mexico.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to crude oil or natural gas removed after December 31, 2021.

SEC. 28. REPEAL OF CORPORATE INCOME TAX EXEMPTION FOR PUBLICLY TRADED 
              PARTNERSHIPS WITH QUALIFYING INCOME AND GAINS FROM 
              ACTIVITIES RELATING TO FOSSIL FUELS.

    (a) In General.--Section 7704(d)(1) of the Internal Revenue Code of 
1986 is amended by inserting ``or any coal, petroleum, natural gas, or 
any derivative of coal, petroleum, or natural gas that is used for 
fuel'' after ``section 613(b)(7)''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after the date of the enactment of this Act.

SEC. 29. AMORTIZATION OF QUALIFIED TERTIARY INJECTANT EXPENSES.

    (a) In General.--Section 193 of the Internal Revenue Code of 1986 
is amended--
            (1) by striking subsection (a) and inserting the following:
    ``(a) Amortization of Qualified Tertiary Injectant Expenses.--
            ``(1) In general.--Any qualified tertiary injectant 
        expenses paid or incurred by the taxpayer shall be allowed as a 
        deduction ratably over the 84-month period beginning on the 
        date that such expense was paid or incurred.
            ``(2) Mid-month convention.--For purposes of paragraph (1), 
        any expenses paid or incurred during any month shall be treated 
        as paid or incurred on the mid-point of such month.''; and
            (2) by striking subsection (c) and inserting the following:
    ``(c) Exclusive Method.--Except as provided in this section, no 
depreciation or amortization deduction shall be allowed with respect to 
qualified tertiary injectant expenses.''.
    (b) Effective Date.--The amendments made by this section shall 
apply to expenses paid or incurred in taxable years beginning after the 
date of the enactment of this Act.

SEC. 30. AMORTIZATION OF DEVELOPMENT EXPENDITURES.

    (a) In General.--Section 616 of the Internal Revenue Code of 1986 
is amended to read as follows:

``SEC. 616. AMORTIZATION OF DEVELOPMENT EXPENDITURES.

    ``(a) In General.--Any expenditures paid or incurred for the 
development of a mine or other natural deposit (other than an oil or 
gas well) if paid or incurred after the existence of ores or minerals 
in commercially marketable quantities has been disclosed shall be 
allowed as a deduction ratably over the 84-month period beginning on 
the date that such expenditure was paid or incurred.
    ``(b) Mid-Month Convention.--For purposes of subsection (a), any 
expenditures paid or incurred during any month shall be treated as paid 
or incurred on the mid-point of such month.
    ``(c) Exclusive Method.--Except as provided in this section, no 
depreciation or amortization deduction shall be allowed with respect to 
expenditures described in subsection (a).
    ``(d) Treatment Upon Abandonment.--If any property with respect to 
which expenditures described in subsection (a) are paid or incurred is 
retired or abandoned during the 84-month period described in such 
subsection, no deduction shall be allowed on account of such retirement 
or abandonment and the amortization deduction under this section shall 
continue with respect to such payment.''.
    (b) Conforming Amendments.--
            (1) The item relating to section 616 in the table of 
        sections for part I of subchapter I of chapter 1 of the 
        Internal Revenue Code of 1986 is amended to read as follows:

``Sec. 616. Amortization of development expenditures.''.
            (2) Section 56(a)(2)(A) of such Code is amended by striking 
        ``616(a) or''.
            (3) Section 59(e) of such Code is amended--
                    (A) in paragraph (2)--
                            (i) in subparagraph (C), by inserting 
                        ``or'' at the end;
                            (ii) by striking subparagraph (D); and
                            (iii) by redesignating subparagraph (E) as 
                        subparagraph (D); and
                    (B) in paragraph (5)(A), by striking ``, 616(a),''.
            (4) Section 263(a)(1) of such Code is amended by striking 
        subparagraph (A).
            (5) Section 263A(c)(3) of such Code is amended by striking 
        ``616,''.
            (6) Section 291(b) of such Code is amended--
                    (A) in paragraph (1)(B), by striking ``616(a) or'';
                    (B) in paragraph (2), by striking ``, 616(a),''; 
                and
                    (C) in paragraph (3), by striking ``, 616(a),''.
            (7) Section 312(n)(2)(B) of such Code is amended by 
        striking ``616(a) or''.
            (8) Section 381(c) of such Code is amended by striking 
        paragraph (10).
            (9) Section 1016(a) of such Code is amended by striking 
        paragraph (9).
            (10) Section 1254(a)(1)(A)(i) of such Code is amended by 
        striking ``, 616,''.
    (c) Effective Date.--The amendments made by this section shall 
apply to expenditures paid or incurred in taxable years beginning after 
the date of the enactment of this Act.

SEC. 31. AMORTIZATION OF CERTAIN MINING EXPLORATION EXPENDITURES.

    (a) In General.--Section 617 of the Internal Revenue Code of 1986 
is amended to read as follows:

``SEC. 617. AMORTIZATION OF CERTAIN MINING EXPLORATION EXPENDITURES.

    ``(a) In General.--Any expenditures paid or incurred for the 
purpose of ascertaining the existence, location, extent, or quality of 
any deposit of ore or other mineral, and paid or incurred before the 
beginning of the development stage of the mine, shall be allowed as a 
deduction ratably over the 84-month period beginning on the date that 
such expense was paid or incurred.
    ``(b) Mid-Month Convention.--For purposes of subsection (a), any 
expenditures paid or incurred during any month shall be treated as paid 
or incurred on the mid-point of such month.
    ``(c) Exclusive Method.--Except as provided in this section, no 
depreciation or amortization deduction shall be allowed with respect to 
expenditures described in subsection (a).
    ``(d) Treatment Upon Abandonment.--If any property with respect to 
which expenditures described in subsection (a) are paid or incurred is 
retired or abandoned during the 84-month period described in such 
subsection, no deduction shall be allowed on account of such retirement 
or abandonment and the amortization deduction under this section shall 
continue with respect to such payment.''.
    (b) Conforming Amendments.--
            (1) The item relating to section 617 in the table of 
        sections for part I of subchapter I of chapter 1 of the 
        Internal Revenue Code of 1986 is amended to read as follows:

``Sec. 617. Amortization of certain mining exploration expenditures.''.
            (2) Section 56(a) of such Code, as amended by section 
        30(b)(2), is amended by striking paragraph (2).
            (3) Section 59(e) of such Code, as amended by section 
        30(b)(3), is amended--
                    (A) in paragraph (2)--
                            (i) in subparagraph (B), by inserting 
                        ``or'' at the end;
                            (ii) in subparagraph (C), by striking the 
                        comma at the end and inserting a period; and
                            (iii) by striking subparagraph (D); and
                    (B) by striking paragraph (5) and inserting the 
                following:
            ``(5) Dispositions.--In the case of any disposition of 
        property to which section 1254 applies (determined without 
        regard to this section), any deduction under paragraph (1) with 
        respect to amounts which are allocable to such property shall, 
        for purposes of section 1254, be treated as a deduction 
        allowable under section 263(c).''.
            (4) Section 170(e) of such Code is amended--
                    (A) in paragraph (1), by striking ``617(d)(1),''; 
                and
                    (B) in paragraph (3)(D), by striking ``617,''.
            (5) Section 263A(c)(3) of such Code, as amended by section 
        30(b)(5), is amended by striking ``291(b)(2), or 617'' and 
        inserting ``or 291(b)(2)''.
            (6) Section 291(b) of such Code, as amended by section 
        30(b)(6), is amended--
                    (A) in the heading, by striking ``and Mineral 
                Exploration and Development Costs'';
                    (B) by striking paragraph (1) and inserting the 
                following:
            ``(1) In general.--In the case of an integrated oil 
        company, the amount allowable as a deduction for any taxable 
        year (determined without regard to this section) under section 
        263(c) shall be reduced by 30 percent.'';
                    (C) in paragraph (2), by striking ``or 617(a) (as 
                the case may be)''; and
                    (D) in paragraph (3), by striking ``or 617(a) 
                (whichever is appropriate)''.
            (7) Section 312(n), as amended by section 30(b)(7), is 
        amended by striking paragraph (2) and inserting the following:
            ``(2) Intangible drilling costs.--Any amount allowable as a 
        deduction under section 263(c) in determining taxable income 
        (other than costs incurred in connection with a nonproductive 
        well)--
                    ``(A) shall be capitalized, and
                    ``(B) shall be allowed as a deduction ratably over 
                the 60-month period beginning with the month in which 
                such amount was paid or incurred.''.
            (8) Section 703(b) of such Code is amended--
                    (A) in paragraph (1), by adding ``or'' at the end;
                    (B) by striking paragraph (2); and
                    (C) by redesignating paragraph (3) as paragraph 
                (2).
            (9) Section 751(c) of such Code is amended--
                    (A) by inserting ``, as in effect on the day before 
                the date of the enactment of the End Polluter Welfare 
                Act of 2021'' after ``section 617(f)(2)''; and
                    (B) by striking ``617(d)(1),''.
            (10) Section 1254(a)(1)(A)(i) of such Code, as amended by 
        section 30(b)(10), is amended by striking ``or 617''.
            (11) Paragraph (2) of section 1363(c) of such Code is 
        amended to read as follows:
            ``(2) Exception.--In the case of an S corporation, 
        elections under section 901 (relating to taxes of foreign 
        countries and possessions of the United States) shall be made 
        by each shareholder separately.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to expenditures paid or incurred in taxable years beginning after 
the date of the enactment of this Act.

SEC. 32. AMORTIZATION OF INTANGIBLE DRILLING AND DEVELOPMENT COSTS IN 
              THE CASE OF OIL AND GAS WELLS AND GEOTHERMAL WELLS.

    (a) In General.--Subsection (c) of section 263 of the Internal 
Revenue Code of 1986 is amended to read as follows:
    ``(c) Intangible Drilling and Development Costs in the Case of Oil 
and Gas Wells and Geothermal Wells.--Notwithstanding subsection (a), 
and except as provided in subsection (i), in the case of any expenses 
paid or incurred in connection with intangible drilling and development 
costs related to oil and gas wells and wells drilled for any geothermal 
deposit (as defined in section 613(e)(2))--
            ``(1) such expenses shall be allowed as a deduction ratably 
        over the 84-month period beginning on the date that such 
        expense was paid or incurred,
            ``(2) any such expenses paid or incurred during any month 
        shall be treated as paid or incurred on the mid-point of such 
        month,
            ``(3) except as provided in this subsection, no 
        depreciation or amortization deduction shall be allowed with 
        respect to such expenses, and
            ``(4) if any property with respect to which such intangible 
        drilling and development costs are paid or incurred is retired 
        or abandoned during such 84-month period, no deduction shall be 
        allowed on account of such retirement or abandonment and the 
        amortization deduction under this subsection shall continue 
        with respect to such payment.''.
    (b) Conforming Amendments.--
            (1) Section 57(a)(2)(B)(i) of the Internal Revenue Code of 
        1986 is amended by striking ``263(c) or''.
            (2) Section 59(e) of such Code, as amended by sections 30 
        and 31, is amended--
                    (A) in paragraph (2)--
                            (i) in subparagraph (A), by inserting 
                        ``or'' at the end;
                            (ii) in subparagraph (B), by striking the 
                        comma at the end and inserting a period; and
                            (iii) by striking subparagraph (C); and
                    (B) by striking paragraph (5).
            (3) Section 263A(c)(3) of such Code, as amended by sections 
        30 and 31, is amended by striking ``263(c),''.
            (4) Section 291 of such Code, as amended by sections 30 and 
        31, is amended by striking subsection (b).
            (5) Section 312(n) of such Code, as amended by sections 30 
        and 31, is amended by striking paragraph (2).
    (c) Effective Date.--The amendments made by this section shall 
apply to expenditures paid or incurred in taxable years beginning after 
the date of the enactment of this Act.

SEC. 33. PERMANENT EXCISE TAX RATE FOR FUNDING OF BLACK LUNG DISABILITY 
              TRUST FUND.

    (a) In General.--Section 4121 of the Internal Revenue Code of 1986 
is amended--
            (1) in subsection (b)--
                    (A) in paragraph (1), by striking ``$1.10'' and 
                inserting ``$1.38''; and
                    (B) in paragraph (2), by striking ``$.55'' and 
                inserting ``$0.69''; and
            (2) by striking subsection (e).
    (b) Effective Date.--The amendments made by this section shall 
apply on and after the first day of the first calendar month beginning 
after the date of the enactment of this Act.

SEC. 34. TERMINATION OF RENEWABLE ELECTRICITY PRODUCTION CREDIT 
              ELIGIBILITY FOR REFINED COAL.

    Section 45(e)(8)(A)(ii)(II) of the Internal Revenue Code of 1986 is 
amended by inserting ``and before the date of enactment of the End 
Polluter Welfare Act of 2021'' after ``such taxable year''.

SEC. 35. TREATMENT OF FOREIGN OIL RELATED INCOME AS SUBPART F INCOME.

    (a) In General.--Section 954(a) of the Internal Revenue Code of 
1986 is amended by striking ``and'' at the end of paragraph (2), by 
striking the period at the end of paragraph (3) and inserting ``, 
and'', and by adding at the end the following new paragraph:
            ``(4) the foreign base company oil related income for the 
        taxable year (determined under subsection (g) and reduced as 
        provided in subsection (b)(5)).''.
    (b) Foreign Base Company Oil Related Income.--Section 954 of the 
Internal Revenue Code of 1986 is amended by inserting after subsection 
(e) the following new subsection:
    ``(g) Foreign Base Company Oil Related Income.--For purposes of 
this section--
            ``(1) In general.--Except as otherwise provided in this 
        subsection, the term `foreign base company oil related income' 
        means foreign oil related income (within the meaning of 
        paragraphs (2) and (3) of section 907(c)) other than income 
        derived from a source within a foreign country in connection 
        with--
                    ``(A) oil or gas which was extracted from an oil or 
                gas well located in such foreign country, or
                    ``(B) oil, gas, or a primary product of oil or gas 
                which is sold by the foreign corporation or a related 
                person for use or consumption within such country or is 
                loaded in such country on a vessel or aircraft as fuel 
                for such vessel or aircraft.
        Such term shall not include any foreign personal holding 
        company income (as defined in subsection (c)).
            ``(2) Paragraph (1) applies only where corporation has 
        produced 1,000 barrels per day or more.--
                    ``(A) In general.--The term `foreign base company 
                oil related income' shall not include any income of a 
                foreign corporation if such corporation is not a large 
                oil producer for the taxable year.
                    ``(B) Large oil producer.--For purposes of 
                subparagraph (A), the term `large oil producer' means 
                any corporation if, for the taxable year or for the 
                preceding taxable year, the average daily production of 
                foreign crude oil and natural gas of the related group 
                which includes such corporation equaled or exceeded 
                1,000 barrels.
                    ``(C) Related group.--The term `related group' 
                means a group consisting of the foreign corporation and 
                any other person who is a related person with respect 
                to such corporation.
                    ``(D) Average daily production of foreign crude oil 
                and natural gas.--For purposes of this paragraph, the 
                average daily production of foreign crude oil or 
                natural gas of any related group for any taxable year 
                (and the conversion of cubic feet of natural gas into 
                barrels) shall be determined under rules similar to the 
                rules of section 613A (as in effect on the day before 
                the date of enactment of the End Polluter Welfare Act 
                of 2021) except that only crude oil or natural gas from 
                a well located outside the United States shall be taken 
                into account.''.
    (c) Conforming Amendments.--
            (1) Section 952(c)(1)(B)(iii) of the Internal Revenue Code 
        of 1986 is amended by redesignating subclauses (I) through (IV) 
        as subclause (II) through (V), respectively, and by inserting 
        before subclause (II) (as so redesignated) the following:
                                    ``(I) foreign base company oil 
                                related income,''.
            (2) Section 954(b) of such Code is amended--
                    (A) by inserting at the end of paragraph (4) the 
                following: ``The preceding sentence shall not apply to 
                foreign base company oil-related income described in 
                subsection (a)(4).'';
                    (B) by striking ``and the foreign base company 
                services income'' in paragraph (5) and inserting ``the 
                foreign base company services income, and the foreign 
                base company oil related income''; and
                    (C) by adding at the end the following new 
                paragraph:
            ``(6) Foreign base company oil related income not treated 
        as another kind of base company income.--Income of a 
        corporation which is foreign base company oil related income 
        shall not be considered foreign base company income of such 
        corporation under paragraph (2) or (3) of subsection (a).''.
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years of foreign corporations beginning after the date 
of the enactment of this Act and to taxable years of United States 
shareholders ending with or within which such taxable years of foreign 
corporations end.

SEC. 36. REPEAL OF EXCLUSION OF FOREIGN OIL AND GAS EXTRACTION INCOME 
              FROM THE DETERMINATION OF TESTED INCOME.

    (a) In General.--Section 951A(c)(2)(A)(i) of the Internal Revenue 
Code of 1986 is amended--
            (1) by adding ``and'' at the end of subclause (III);
            (2) by striking ``and'' at the end of subclause (IV) and 
        inserting ``over''; and
            (3) by striking subclause (V).
    (b) Effective Date.--The amendments made by this section shall 
apply to taxable years of foreign corporations beginning after the date 
of enactment of this Act, and to taxable years of United States 
shareholders in which or with which such taxable years of foreign 
corporations end.

SEC. 37. TERMINATION OF CREDIT FOR CARBON OXIDE SEQUESTRATION.

    (a) In General.--Section 45Q of the Internal Revenue Code of 1986 
is amended by adding at the end the following:
    ``(i) Termination.--This section shall not apply with respect to 
any qualified carbon oxide captured after the date of enactment of the 
End Polluter Welfare Act of 2021.''.
    (b) Report.--
            (1) In general.--Not later than 6 months after the date of 
        enactment of this Act, the Secretary of the Treasury, or the 
        Secretary's delegate, shall submit a report to Congress, to be 
        made available to the public, which provides the following 
        information:
                    (A) The taxpayer identity information of any 
                taxpayer for which the carbon oxide sequestration 
                credit under section 45Q of the Internal Revenue Code 
                of 1986 was allowed for any taxable year following the 
                enactment of such section.
                    (B) The total amount of the credit allowed pursuant 
                to such section to each taxpayer described in 
                subparagraph (A).
                    (C) With respect to the amount described in 
                subparagraph (B), the amount of such credit allowed 
                with respect to each of the following:
                            (i) Qualified carbon oxide which was 
                        captured and disposed of by the taxpayer in 
                        secure geological storage and not used by the 
                        taxpayer as described in clause (ii) or (iii).
                            (ii) Qualified carbon oxide which was 
                        captured and used by the taxpayer as a tertiary 
                        injectant in a qualified enhanced oil or 
                        natural gas recovery project and disposed of by 
                        the taxpayer in secure geological storage.
                            (iii) Qualified carbon oxide which was 
                        captured and utilized by the taxpayer in a 
                        manner described in section 45Q(f)(5) of the 
                        Internal Revenue Code of 1986.
            (2) Exception from rules regarding confidentiality and 
        disclosure of returns and return information.--Section 6103(l) 
        of the Internal Revenue Code of 1986 is amended by adding at 
        the end the following:
            ``(23) Disclosure of return information for public report 
        on carbon oxide sequestration credit.--The Secretary may 
        disclose taxpayer identity information and return information 
        to the extent the Secretary deems necessary for purposes of the 
        report issued pursuant to section 37 of the End Polluter 
        Welfare Act of 2021.''.

SEC. 38. POWDER RIVER BASIN.

    (a) Designation of the Powder River Basin as a Coal Producing 
Region.--As soon as practicable after the date of enactment of this 
Act, the Director of the Bureau of Land Management shall designate the 
Powder River Basin as a coal producing region.
    (b) Report.--Not later than 1 year after the date of enactment of 
this Act, the Director of the Bureau of Land Management shall submit to 
Congress a report that includes--
            (1) a study of the fair market value and the amount and 
        effective rate of royalties paid on coal leases in the Powder 
        River Basin compared to other national and international coal 
        basins and markets; and
            (2) any policy recommendations to capture the future market 
        value of the coal leases in the Powder River Basin.

SEC. 39. STUDY AND ELIMINATION OF ADDITIONAL FOSSIL FUEL SUBSIDIES.

    (a) Definition of Fossil-Fuel Production Subsidy.--In this section, 
the term ``subsidy for fossil-fuel production'' means any direct 
funding, tax treatment or incentive, risk-reduction benefit, financing 
assistance or guarantee, royalty relief, or other provision that 
provides a financial benefit to a fossil-fuel company for the 
production of fossil fuels.
    (b) Report to Congress.--Not later than 1 year after the date of 
enactment of this Act, the Secretary of the Treasury or the Secretary's 
delegate (referred to in this section as the ``Secretary''), in 
coordination with the Secretary of Energy, shall submit to Congress a 
report detailing each Federal law (including regulations), other than 
those amended by this Act, as in effect on the date on which the report 
is submitted, that includes a subsidy for fossil-fuel production.
    (c) Report on Modified Recovery Period.--
            (1) In general.--Not later than 1 year after the date of 
        enactment of this Act, the Secretary, in coordination with the 
        Commissioner of Internal Revenue, shall submit to Congress a 
        report on the applicable recovery period under the accelerated 
        cost recovery system provided in section 168 of the Internal 
        Revenue Code of 1986 for each type of property involved in 
        fossil-fuel production, including pipelines, power generation 
        property, refineries, and drilling equipment, to determine if 
        any assets are receiving a subsidy for fossil-fuel production.
            (2) Elimination of subsidy.--In the case of any type of 
        property that the Secretary determines is receiving a subsidy 
        for fossil-fuel production under such section 168, for property 
        placed in service in taxable years beginning after the date of 
        such determination, such section 168 shall not apply. The 
        preceding sentence shall not apply to any property with respect 
        to a taxable year unless such determination is published before 
        the first day of such taxable year.
                                 <all>