[Congressional Record Volume 168, Number 133 (Saturday, August 6, 2022)]
[Senate]
[Pages S4301-S4306]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

  SA 5299. Mr. MERKLEY (for himself and Mr. Sanders) submitted an 
amendment intended to be proposed to amendment SA 5194 proposed by Mr. 
Schumer to the bill H.R. 5376, to provide for reconciliation pursuant 
to title II of S. Con. Res. 14; which was ordered to lie on the table; 
as follows:

        At the end of subtitle D of title I, insert the following:

                   PART 10--END POLLUTER WELFARE ACT

     SEC. 14001. SHORT TITLE.

       This part may be cited as the ``End Polluter Welfare Act of 
     2022''.

     SEC. 14002. DEFINITION OF FOSSIL FUEL.

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

     SEC. 14003. 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     the Energy Policy Act of 2005 (42 U.S.C. 15904) is repealed.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     Policy Act of 2005 (42 U.S.C. 15905) is repealed.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. 14004. 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. 14005. 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. 14006. 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. 14007. 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. 14008. 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. 14009. 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. 14010. 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.

[[Page S4302]]

       (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. 14011. 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. 14012. 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. 14013. 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. 14014. 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. 14015. 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 2022:
       ``(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 2022:
       ``(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 2022:
       ``(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 2022.
       ``(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 2022.''.
       (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. 14016. 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 2022.
       ``(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 2022.''.
       (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 2022.''.
       (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 2022, 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 2022.''.

     SEC. 14017. 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. 14018. 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 2022'' 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,

[[Page S4303]]

     or, in the case of self-constructed property, has started 
     construction on or before such date.

     SEC. 14019. 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 2022.''.
       (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 2022.''.
       (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. 14020. 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 2022.''.
       (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. 14021. 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. 14022. 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. 14023. 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. 14024. 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.

[[Page S4304]]

  


     SEC. 14025. 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. 14026. 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. 14027. 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. 14028. 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. 14029. 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.''.


[[Page S4305]]


       (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. 14030. 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 
     14029(b)(2), is amended by striking paragraph (2).
       (3) Section 59(e) of such Code, as amended by section 
     14029(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 
     14029(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 
     14029(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 14029(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 
     2022'' 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 14029(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. 14031. 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 
     14029 and 14030, 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 
     14029 and 14030, is amended by striking ``263(c),''.
       (4) Section 291 of such Code, as amended by sections 14029 
     and 14030, is amended by striking subsection (b).
       (5) Section 312(n) of such Code, as amended by sections 
     14029 and 14030, 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. 14032. 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. 14033. 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 2022'' after 
     ``such taxable year''.

     SEC. 14034. 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

[[Page S4306]]

     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 2022) 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. 14035. 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. 14036. 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. 14037. 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.
                                 ______