Program to provide to certain patrons a discount on motor fuel sold at exchange stores

(a)

In general

The Secretary of Defense may, if there is a tax described in subsection (b) applicable to motor fuel, carry out a program to provide to eligible patrons a discount on such motor fuel— (1)sold at an exchange store; and (2)dispensed directly into a vehicle owned by an eligible patron. (b)

Amount of discount

(1)

Base discount

A discount provided under subsection (a) shall be an amount not less than— (A)the rate of tax applicable to gasoline under section 4081 of the Internal Revenue Code of 1986 (26 U.S.C. 4081), except that such discount may not be less than 18.4 cents per gallon; and (B)the rate of tax applicable to diesel fuel under such section 4081, except that such discount may not be less than 24.4 cents per gallon. (2)

Authorization of supplemental discount

The Secretary may, if there is a State or local tax applicable to such motor fuel, provide an additional discount to an eligible patron, with respect to each gallon of motor fuel sold at an exchange store, of such amount as the Secretary determines appropriate. (c)

Automatic application

The Secretary shall, to the maximum extent practicable, ensure that a discount provided under this section is applied upon the sale of motor fuel at an exchange store to an eligible patron. (d)

Regulations

The Secretary shall update any appropriate regulations to prevent— (1)fraud or abuse of a program carried out under this section; and (2)the resale or commercial use of motor fuel purchased at a discount under this section. (e)

Termination

The authority of the Secretary to provide a discount under this section shall terminate on September 30, 2029. (f)

Report

Not later than 180 days after the date on which the Secretary carries out a program under this section, and annually thereafter until the termination under subsection (e), the Secretary shall submit to the Committees on Armed Services of the House of Representatives and the Senate a report on such a program, including— (1)the number of exchange stores, disaggregated by exchange system, that sold motor fuel subject to a discount under subsection (b)(1); (2)the total gallons of such motor fuel sold annually by— (A)each exchange store; (B)all exchange stores; and (C)all exchange stores, disaggregated by exchange system; (3)the total annual cost of the discount under subsection (b)(1)(A); (4)the total annual cost of any additional discount under subsection (b)(1)(B); (5)the average amount of motor fuel sold annually by each exchange store before the date of the enactment of this Act; (6)any identified fraud, abuse, or issues with implementation with respect to such program; and (7)any recommendations with respect to continuing or modifying such program. (g)

Coordination

Nothing in this section shall be construed to prohibit the Secretary from coordinating with the heads of other Federal departments or agencies to encourage the adoption of similar policies with respect to discounts on motor fuel— (1)for members of the uniformed services; or (2)other persons served by exchange systems outside the Department of Defense. (h)

Eligible patron defined

The term eligible patron means a person who is authorized under Federal law and applicable regulations to purchase motor fuel from a fuel station operated by an exchange store.