[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the Energy Policy Act of 2005 (42 U.S.C. 15904) is repealed.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Policy Act of 2005 (42 U.S.C. 15905) is repealed.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.
______