,i #aacth ,,congress #ast ,session ,h4 ,r4 #cegd ,,in ,,the ,,house ,,of ,,representatives ,november #ba1 #bjac,mr4 ,ellison 7for himself1 ,mr4 ,conyers1 ,mr4 ,grijalva1 ,mr4 ,blumenauer1 ,mr4 ,honda1 ,mr4 ,huffman1 ,mr4 ,nolan1 ,mr4 ,serrano1 ,ms4 ,lee of ,california1 ,mr4 ,grayson1 and ,mr4 ,cohen7 introduced the following bill2 which was referred to the ,committee on ,ways and ,means1 and in addition to the ,committees on ,transportation and ,infrastructure1 ,natural ,resources1 ,science1 ,space1 and ,technology1 ,energy and ,commerce1 ,agriculture1 ,appropriations1 ,financial ,services1 and ,foreign ,affairs1 for a period to be subsequently determined by the ,speaker1 in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned ,a ,,bill ,to eliminate certain subsidies for fossil-fuel production4 #a4 ,short title ,this ,act may be cited as the ,end ,polluter ,welfare ,act of #bjac4 #b4 ,findings ,congress finds that-- 7#a7 ,president ,obama joined other world leaders from the ,group of ,twenty in pledging to phase out wasteful fossil-fuel subsidies2 7#b7 the ,environmental ,law ,institute found that from #bjjb through #bjjh1 ,federal fossil-fuel subsidies in the ,united ,states totaled over #gb1jjj1jjj1jjj1 while ,federal renewable-energy investments totaled #ab1bjj1jjj1jjj2 7#c7 according to ,taxpayers for ,common ,sense1 the #e largest oil corporations have made more than #a1jjj1jjj1jjj1jjj in profits during the past decade2 7#d7 according to the ,center for ,american ,progress1 the #e largest oil corporations posted more than #gj1jjj1jjj1jjj in profits in just the first #c quarters of #bjac2 7#e7 according to the ,center for ,responsive ,politics1 the entire oil and gas industry spent #aje1jjj1jjj on lobbying in the first #c quarters of #bjac1 which was an effective investment in protecting their extraordinary tax loopholes and subsidies2 and 7#f7 taxpayers in the ,united ,states should not be subsidizing fossil fuel companies in a period of record debt4 #c4 ,definition of fossil fuel ,in this ,act1 the term fossil fuel means coal1 petroleum1 natural gas1 or any derivative of coal1 petroleum1 or natural gas that is used for fuel4 #d4 ,royalty ,relief 7a7 ,in general 7#a7 ,outer ,continental ,shelf ,lands ,act ,section #h7;a77#c7 of the ,outer ,continental ,shelf ,lands ,act 7#dc ,u4,s4,c4 #accg7;a77#c77 is amended-- 7,a7 by striking subparagraph 7,b72 and 7,b7 by redesignating subparagraph 7,c7 as subparagraph 7,b74 7#b7 ,energy ,policy ,act of #bjje 7,a7 ,incentives for natural gas production from deep wells in the shallow waters of the ,gulf of ,mexico ,section #cdd of the ,energy ,policy ,act of #bjje 7#db ,u4,s4,c4 #aeijd7 is repealed4 7,b7 ,deep water production ,section #cde of the ,energy ,policy ,act of #bjje 7#db ,u4,s4,c4 #aeije7 is repealed4 7b7 ,future provisions ,notwithstanding any other provision of law 7including regulations71 royalty relief shall not be permitted under a lease issued under section #h of the ,outer ,continental ,shelf ,lands ,act 7#dc ,u4,s4,c4 #accg74 #e4 ,royalties under ,mineral ,leasing ,act 7a7 ,coal leases ,section #g7;a7 of the ,mineral ,leasing ,act 7#cj ,u4,s4,c4 #bjg7;a77 is amended by striking #aba_/b and inserting #ahc_/d4 7b7 ,leases on land on which oil or natural gas is discovered ,section #ad of the ,mineral ,leasing ,act 7#cj ,u4,s4,c4 #bbc7 is amended by striking #aba_/b and inserting #ahc_/d4 7c7 ,leases on land known or believed ,to contain oil or natural gas ,section #ag of the ,mineral ,leasing ,act 7#cj ,u4,s4,c4 #bbf7 is amended-- 7#a7 in subsection 7b7-- 7,a7 in paragraph 7#a77;,a71 by striking #ab4e and inserting #ahc_/d2 and 7,b7 in paragraph 7#b77;,a77ii71 by striking #aba_/b and inserting #ahc_/d2 7#b7 in subsection 7c77#a71 by striking #ab4e and inserting #ahc_/d2 7#c7 in subsection 7l71 by striking #aba_/b each time it appears and inserting #ahc_/d2 and 7#d7 in subsection 7n77#a77;,c71 by striking #aba_/b and inserting #ahc_/d4 #f4 ,ultra-,deepwater and ,unconventional ,natural ,gas and ,other ,petroleum ,resources ,subtitle ,j of title ,,ix of the ,energy ,policy ,act of #bjje 7#db ,u4,s4,c4 #afcga et seq47 is repealed4 #g4 ,removal of limits on liability for offshore facilities and pipeline operators ,section #ajjd7;a7 of the ,oil ,pollution ,act of #aiij 7#cc ,u4,s4,c4 #bgjd7;a77 is amended-- 7#a7 in paragraph 7#c71 by striking plus #ge1jjj1jjj2 and and inserting and the liability of the responsible party under section #ajjb22 7#b7 in paragraph 7#d7-- 7,a7 by inserting 7except an onshore pipeline transporting diluted bitumen1 bituminous mixtures1 or any oil manufactured from bitumen7 after for any onshore facility2 and 7,b7 by striking the period at the end and inserting 2 and2 and 7#c7 by adding at the end the following3 7#e7 for any onshore facility transporting diluted bitumen1 bituminous mixtures1 or any oil manufactured from bitumen1 the liability of the responsible party under section #ajjb4 4 #h4 ,funds to ,world ,bank for financing projects that support fossil fuel 7a7 ,rescission of funds ,effective on the date of enactment of this ,act1 there are rescinded all unobligated balances of the amounts made available to the ,international ,bank for ,reconstruction and ,development and the ,international ,development ,association 7commonly known as the ,world ,bank71 and each other similar international financing entity that has received amounts from the ,united ,states1 as determined by the ,secretary of the ,treasury1 to carry out any project that supports fossil fuel4 7b7 ,future funds ,notwithstanding any other provision of law1 any amounts made available to the ,world ,bank or any other international financing entity shall not be used to carry out any project that supports fossil fuel4 #i4 ,office of ,fossil ,energy ,research and ,development 7a7 ,in general ,section #bjc7;a77#b7 of the ,department of ,energy ,organization ,act 7#db ,u4,s4,c4 #gacc7;a77#b77 is amended-- 7#a7 in subparagraph 7,c71 by inserting and after the semicolon at the end2 7#b7 by striking subparagraph 7,d72 and 7#c7 by redesignating subparagraph 7,e7 as subparagraph 7,d74 7b7 ,termination ,notwithstanding any other provision of law1 the ,office of ,fossil ,energy ,research and ,development and the authority to carry out any program or activity of the ,office 7as in existence on the day before the date of enactment of this ,act7 is terminated4 #aj4 ,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 fuel4 #aa4 ,incentives for innovative technologies 7a7 ,in general ,section #agjc of the ,energy ,policy ,act of #bjje 7#db ,u4,s4,c4 #afeac7 is amended-- 7#a7 in subsection 7b7-- 7,a7 by striking paragraph 7#b72 7,b7 by striking paragraph 7#aj72 and 7,c7 by redesignating paragraphs 7#c7 through 7#i7 as paragraphs 7#b7 through 7#h7 respectively2 7#b7 by striking subsection 7c72 and 7#c7 by redesignating subsections 7d7 and 7e7 as paragraphs 7c7 and 7d7 respectively4 7b7 ,conforming amendment ,section #agjd of the ,energy ,policy ,act of #bjje 7#db ,u4,s4,c4 #afead7 is amended-- 7#a7 in subsection 7a71 by striking 7a7 ,in general4--2 and 7#b7 by striking subsection 7b74 #ab4 ,rural ,utility ,service loan guarantees ,the ,secretary of ,agriculture shall not make a loan under title ,,iii of the ,rural ,electrification ,act of #aicf 7#g ,u4,s4,c4 #ica et seq47 to an applicant for the purpose of carrying out any project that will use fossil fuel4 #ac4 ,funds to the ,overseas ,private ,investment ,corporation or the ,export-,import ,bank of the ,united ,states for financing projects1 transactions1 or other activities that support fossil fuel 7a7 ,rescission of funds ,effective on the date of enactment of this ,act1 there are rescinded all unobligated balances of the amounts made available to the ,overseas ,private ,investment ,corporation or the ,export-,import ,bank of the ,united ,states to carry out any project1 transaction1 or other activity that supports fossil-fuel production4 7b7 ,future funds ,notwithstanding any other provision of law1 any amounts made available to the ,overseas ,private ,investment ,corporation or the ,export-,import ,bank of the ,united ,states shall not be used to carry out any project1 transaction1 or other activity that supports fossil-fuel production4 #ad4 ,transportation funds for grants1 loans1 loan guarantees1 and other direct assistance ,notwithstanding any other provision of law1 any amounts made available to the ,department of ,transportation 7including the ,federal ,railroad ,administration7 shall not be used to award any grant1 loan1 loan guarantee1 or provide any other direct assistance to any rail or port project that transports fossil fuel4 #ae4 ,termination of various tax expenditures relating to fossil fuels 7a7 ,in general ,subchapter ,c of chapter #hj of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new section3 #ghge4 ,termination of certain provisions relating to fossil fuel incentives 7a7 ,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 #bjac3 7#a7 ,section #dc 7relating to enhanced oil recovery credit74 7#b7 ,section #de;,i 7relating to credit for producing oil and natural gas from marginal wells74 7#c7 ,section #de,k 7relating to credit for producing fuel from a nonconventional source74 7#d7 ,section #aic 7relating to tertiary injectants74 7#e7 ,section #aii7;d77#i7 7relating to special rule for taxpayers with oil related qualified production activities income74 7#f7 ,section #dfa7;i77#b7 7relating to special rule for spudding of oil or natural gas wells74 7#g7 ,section #dfi7;c77#c7 7relating to working interests in oil and natural gas property74 7#h7 ,section #fac;,a 7relating to limitations on percentage depletion in case of oil and natural gas wells74 7#i7 ,section #fag 7relating to deduction and recapture of certain mining exploration expenditures74 7#aj7 ,section #ggjd7;d77#a77;,e7 7relating to qualifying income74 7b7 ,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 #bjac3 7#a7 ,subparagraphs 7,c77iii7 and 7,e77viii7 of section #afh7;e77#c7 7relating to classification of certain property74 7#b7 ,section #afi 7relating to amortization of pollution control facilities7 with respect to any atmospheric pollution control facility4 7#c7 ,section #agi;,c 7relating to election to expense certain refineries74 7c7 ,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 #bjac3 7#a7 ,section #agi;,b 7relating to deduction for capital costs incurred in complying with ,environmental ,protection ,agency sulfur regulations74 7#b7 ,section #bfc7;c7 7relating to intangible drilling and development costs7 with respect to costs in the case of oil and natural gas wells4 7#c7 ,section #dfh 7relating to special rules for mining and solid waste reclamation and closing costs74 7d7 #e-,year carryback for marginal oil and natural gas well production credit ,section #ci7;a77#c7 7relating to #e-year carryback for marginal oil and natural gas well production credit7 shall not apply to credits determined in taxable years beginning after the date of the enactment of the ,end ,polluter ,welfare ,act of #bjac4 7e7 ,credit for carbon dioxide sequestration ,section #de,q 7relating to credit for carbon dioxide sequestration7 shall not apply to carbon dioxide captured after the date of the enactment of the ,end ,polluter ,welfare ,act of #bjac4 7f7 ,allocated credits ,no new credits shall be certified under section #dh;,a 7relating to qualifying advanced coal project credit7 or section #dh;,b 7relating to qualifying gasification project credit7 after the date of the enactment of the ,end ,polluter ,welfare ,act of #bjac4 7g7 ,arbitrage bonds ,section #adh7;b77#d7 7relating to safe harbor for prepaid natural gas7 shall not apply to obligations issued after the date of the enactment of the ,end ,polluter ,welfare ,act of #bjac4 4 7b7 ,conforming amendment ,the table of sections for subchapter ,c of chapter #ij is amended by adding at the end the following new item3 ,sec4 #ghge4 ,termination of certain provisions4 4 #af4 ,termination of alternative fuel vehicle refueling property credit with respect to fossil fuels 7a7 ,in general ,paragraph 7#b7 of section #cj;,c7c7 of the ,internal ,revenue ,code of #aihf is amended-- 7#a7 by striking 1 natural gas1 compressed natural gas1 liquefied natural gas1 liquefied petroleum gas1 in subparagraph 7,a71 7#b7 by striking subparagraph 7,b71 and 7#c7 by redesignating subparagraph 7,c7 as subparagraph 7,b74 7b7 ,effective date ,the amendments made by this section shall apply to property placed in service after the date of enactment of this ,act4 #ag4 ,uniform seven-year amortization for geological and geophysical expenditures 7a7 ,in general ,section #afg7;h7 of the ,internal ,revenue ,code of #aihf is amended-- 7#a7 by striking #bd-month period each place it appears in paragraphs 7#a7 and 7#d7 and inserting #g-year period1 and 7#b7 by striking paragraph 7#e74 7b7 ,effective date ,the amendments made by this section shall apply to amounts paid or incurred after the date of the enactment of this ,act4 #ah4 ,natural gas gathering lines treated as #ae-year property 7a7 ,in general ,subparagraph 7,e7 of section #afh7;e77#c7 of the ,internal ,revenue ,code of #aihf is amended by striking and at the end of clause 7viii71 by striking the period at the end of clause 7ix7 and inserting 1 and1 and by adding at the end the following new clause3 7x7 any natural gas gathering line the original use of which commences with the taxpayer after the date of the enactment of this clause4 4 7b7 ,alternative system ,the table contained in section #afh7;g77#c77;,b7 of the ,internal ,revenue ,code of #aihf is amended by inserting after the item relating to subparagraph 7,e77ix7 the following new item3 7,e77x7#bb 4 7c7 ,conforming amendment ,clause 7iv7 of section #afh7;e77#c77;,c7 of the ,internal ,revenue ,code of #aihf is amended by inserting and on or before the date of the enactment of the ,end ,polluter ,welfare ,act of #bjac after ,april #aa1 #bjje4 7d7 ,effective date 7#a7 ,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 ,act4 7#b7 ,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 enactment of this ,act1 or1 in the case of self-constructed property1 has started construction on or before such date4 #ai4 ,repeal of domestic manufacturing deduction for hard mineral mining 7a7 ,in general ,subparagraph 7,b7 of section #aii7;c77#d7 of the ,internal ,revenue ,code of #aihf is amended by striking or at the end of clause 7ii71 by striking the period at the end of clause 7iii7 and inserting 1 or1 and by adding at the end the following new clause3 7iv7 the mining of any hard mineral4 4 7b7 ,effective date ,the amendments made by this section shall apply to taxable years beginning after the date of the enactment of this ,act4 #bj4 ,limitation on deduction for income attributable to domestic production of oil1 natural gas1 or primary products thereof 7a7 ,denial of deduction ,paragraph 7#d7 of section #aii7;c7 of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new subparagraph3 7,e7 ,special rule for oil1 natural gas1 and coal income ,the term domestic production gross receipts shall not include gross receipts from the production1 refining1 processing1 transportation1 or distribution of oil1 natural gas1 or coal1 or any primary product 7within the meaning of subsection 7d77#i77 thereof4 4 7b7 ,effective date ,the amendment made by this section shall apply to taxable years beginning after the date of the enactment of this ,act4 #ba4 ,termination of last-in1 first-out method of inventory for oil1 natural gas1 and coal companies 7a7 ,in general ,section #dgb of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new subsection3 7h7 ,termination for oil1 natural gas1 and coal companies ,subsection 7a7 shall not apply to any taxpayer that is in the trade or business of the production1 refining1 processing1 transportation1 or distribution of oil1 natural gas1 or coal for any taxable year beginning after the date of enactment of the ,end ,polluter ,welfare ,act of #bjac4 4 7b7 ,additional termination ,section #dgc of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new subsection3 7h7 ,termination for oil1 natural gas1 and coal companies ,this section shall not apply to any taxpayer that is in the trade or business of the production1 refining1 processing1 transportation1 or distribution of oil1 natural gas1 or coal for any taxable year beginning after the date of enactment of the ,end ,polluter ,welfare ,act of #bjac4 4 7c7 ,effective date ,the amendments made by this section shall apply to taxable years beginning after the date of enactment of this ,act4 #bb4 ,repeal of percentage depletion for coal and hard mineral fossil fuels 7a7 ,in general ,section #fac of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new subsection3 7f7 ,termination with respect to coal and hard mineral fossil fuels ,in the case of coal1 lignite1 and oil shale 7other than oil shale described in subsection 7b77#e771 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 #bjac4 4 7b7 ,conforming amendments 7#a7 ,coal and lignite ,section #fac7;b77#d7 of the ,internal ,revenue ,code of #aihf is amended by striking coal1 lignite14 7#b7 ,oil shale ,section #fac7;b77#b7 of such ,code is amended to read as follows3 7#b7 #ae percent ,if1 from deposits in the ,united ,states1 gold1 silver1 copper1 and iron ore4 4 7c7 ,effective date ,the amendments made by this section shall apply to taxable years beginning after the date of the enactment of this ,act4 #bc4 ,termination of capital gains treatment for royalties from coal 7a7 ,in general ,subsection 7c7 of section #fca of the ,internal ,revenue ,code of #aihf is amended-- 7#a7 by striking coal 7including lignite71 or iron ore and inserting iron ore1 7#b7 by striking coal or iron ore each place it appears and inserting iron ore1 7#c7 by striking iron ore or coal each place it appears and inserting iron ore1 and 7#d7 by striking coal or in the heading4 7b7 ,conforming amendment ,the heading of section #fca of the ,internal ,revenue ,code of #aihf is amended by striking 1 coal14 7c7 ,effective date ,the amendments made by this section shall apply to dispositions after the date of the enactment of this ,act4 #bd4 ,modifications of foreign tax credit rules applicable to oil1 natural gas1 and coal companies which are dual capacity taxpayers 7a7 ,in general ,section #ija of the ,internal ,revenue ,code of #aihf is amended by redesignating subsection 7n7 as subsection 7o7 and by inserting after subsection 7m7 the following new subsection3 7n7 ,special rules relating to oil1 natural gas1 and coal companies which are dual capacity taxpayers 7#a7 ,general rule ,notwithstanding any other provision of this chapter1 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 production1 refining1 processing1 transportation1 or distribution of oil1 natural gas1 or coal shall not be considered a tax-- 7,a7 if1 for such period1 the foreign country or possession does not impose a generally applicable income tax1 or 7,b7 to the extent such amount exceeds the amount 7determined in accordance with regulations7 which-- 7i7 is paid by such dual capacity taxpayer pursuant to the generally applicable income tax imposed by the country or possession1 or 7ii7 would be paid if the generally applicable income tax imposed by the country or possession were applicable to such dual capacity taxpayer4 ,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 7,b74 7#b7 ,dual capacity taxpayer ,for purposes of this subsection1 the term dual capacity taxpayer means1 with respect to any foreign country or possession of the ,united ,states1 a person who-- 7,a7 is subject to a levy of such country or possession1 and 7,b7 receives 7or will receive7 directly or indirectly a specific economic benefit 7as determined in accordance with regulations7 from such country or possession4 7#c7 ,generally applicable income tax ,for purposes of this subsection-- 7,a7 ,in general ,the term generally applicable income tax means an income tax 7or a series of income taxes7 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 possession4 7,b7 ,exceptions ,such term shall not include a tax unless it has substantial application1 by its terms and in practice1 to-- 7i7 persons who are not dual capacity taxpayers1 and 7ii7 persons who are citizens or residents of the foreign country or possession4 4 7b7 ,effective ,date 7#a7 ,in general ,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 ,act4 7#b7 ,contrary treaty obligations upheld ,the amendments made by this section shall not apply to the extent contrary to any treaty obligation of the ,united ,states4 #be4 ,increase in oil spill liability trust fund financing rate 7a7 ,in general ,subparagraph 7,b7 of section #dfaa7;c77#b7 of the ,internal ,revenue ,code of #aihf is amended to read as follows3 7,b7 the ,oil ,spill ,liability ,trust ,fund financing rate is-- 7i7 in the case of crude oil received or petroleum products entered before ,january #a1 #bjac1 #h cents a barrel1 7ii7 in the case of crude oil received or petroleum products entered after ,december #ca1 #bjac1 and before ,january #a1 #bjag1 #i cents a barrel1 and 7iii7 in the case of crude oil received or petroleum products entered after ,december #ca1 #bjaf1 #aj cents a barrel4 4 7b7 ,effective date ,the amendment made by this section shall apply to crude oil received and petroleum products entered after the date of the enactment of this ,act4 #bf4 ,application of certain environmental taxes to synthetic crude oil 7a7 ,in general ,paragraph 7#a7 of section #dfab7;a7 of the ,internal ,revenue ,code of #aihf is amended to read as follows3 7#a7 ,crude oil 7,a7 ,in general ,the term crude oil includes crude oil condensates1 natural gasoline1 and synthetic crude oil4 7,b7 ,synthetic crude oil ,for purposes of subparagraph 7,a71 the term synthetic crude oil means any bitumen and bituminous mixtures1 any oil manufactured from bitumen and bituminous mixtures1 and any liquid fuel manufactured from coal4 4 7b7 ,effective date ,the amendment made by this section shall apply to oil and petroleum products received or entered during calendar quarters beginning more than #fj days after the date of the enactment of this ,act4 #bg4 ,denial of deduction for removal costs and damages for certain oil spills 7a7 ,in general ,part ,,ix of subchapter ,b of chapter #a of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new section3 #bhj;,i4 ,expenses for removal costs and damages relating to certain oil spill liability ,no deduction shall be allowed under this chapter for any amount paid or incurred with respect to any costs or damages for which the taxpayer is liable under section #ajjb of the ,oil ,pollution ,act of #aiij 7#cc ,u4,s4,c4 #bgjb74 4 7b7 ,clerical amendment ,the table of sections for part ,,ix of subchapter ,b of chapter #a of such ,code is amended by adding at the end the following new item3 ,sec4 #bhj;,i4 ,expenses for removal costs and damages relating to certain oil spill liability4 4 7c7 ,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 ,act4 #bh4 ,tax on crude oil and natural gas produced from the outer ,continental ,shelf in the ,gulf of ,mexico 7a7 ,in general ,subtitle ,e of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new chapter3 #ef ,tax on severance of crude oil and natural gas from the outer ,continental ,shelf in the ,gulf of ,mexico ,sec4 #eija4 ,imposition of tax4,sec4 #eijb4 ,taxable crude oil or natural gas and removal price4,sec4 #eijc4 ,special rules and definitions4 #eija4 ,imposition of tax 7a7 ,in general ,in addition to any other tax imposed under this title1 there is hereby imposed a tax equal to #ac percent of the removal price of any taxable crude oil or natural gas removed from the premises during any taxable period4 7b7 ,credit for ,federal royalties paid 7#a7 ,in general ,there shall be allowed as a credit against the tax imposed by subsection 7a7 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 production4 7#b7 ,limitation ,the aggregate amount of credits allowed under paragraph 7#a7 to any taxpayer for any taxable period shall not exceed the amount of tax imposed by subsection 7a7 for such taxable period4 7c7 ,tax paid by producer ,the tax imposed by this section shall be paid by the producer of the taxable crude oil or natural gas4 #eijb4 ,taxable crude oil or natural gas and removal price 7a7 ,taxable crude oil or natural gas ,for purposes of this chapter1 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 production4 7b7 ,removal price ,for purposes of this chapter-- 7#a7 ,in general ,except as otherwise provided in this subsection1 the term removal price means-- 7,a7 in the case of taxable crude oil1 the amount for which a barrel of such crude oil is sold1 and 7,b7 in the case of taxable natural gas1 the amount per #a1jjj cubic feet for which such natural gas is sold4 7#b7 ,sales between related persons ,in the case of a sale between related persons1 the removal price shall not be less than the constructive sales price for purposes of determining gross income from the property under section #fac4 7#c7 ,oil or natural gas removed from property before sale ,if crude oil or natural gas is removed from the property before it is sold1 the removal price shall be the constructive sales price for purposes of determining gross income from the property under section #fac4 7#d7 ,refining begun on property ,if the manufacture or conversion of crude oil into refined products begins before such oil is removed from the property-- 7,a7 such oil shall be treated as removed on the day such manufacture or conversion begins1 and 7,b7 the removal price shall be the constructive sales price for purposes of determining gross income from the property under section #fac4 7#e7 ,property ,the term property has the meaning given such term by section #fad4 #eijc4 ,special rules and definitions 7a7 ,administrative requirements 7#a7 ,withholding and deposit of tax ,the ,secretary shall provide for the withholding and deposit of the tax imposed under section #eija on a quarterly basis4 7#b7 ,records and information ,each taxpayer liable for tax under section #eija shall keep such records1 make such returns1 and furnish such information 7to the ,secretary and to other persons having an interest in the taxable crude oil or natural gas7 with respect to such oil as the ,secretary may by regulations prescribe4 7#c7 ,taxable periods2 return of tax 7,a7 ,taxable period ,except as provided by the ,secretary1 each calendar year shall constitute a taxable period4 7,b7 ,returns ,the ,secretary shall provide for the filing1 and the time for filing1 of the return of the tax imposed under section #eija4 7b7 ,definitions ,for purposes of this chapter-- 7#a7 ,producer ,the term producer means the holder of the economic interest with respect to the crude oil or natural gas4 7#b7 ,crude oil ,the term crude oil includes crude oil condensates and natural gasoline4 7#c7 ,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 #fac4 7c7 ,adjustment of removal price ,in determining the removal price of oil or natural gas from a property in the case of any transaction1 the ,secretary may adjust the removal price to reflect clearly the fair market value of oil or natural gas removed4 7d7 ,regulations ,the ,secretary shall prescribe such regulations as may be necessary or appropriate to carry out the purposes of this chapter4 4 7b7 ,deductibility of tax ,the first sentence of section #afd7;a7 is amended by inserting after paragraph 7#f7 the following new paragraph3 7#g7 ,the tax imposed by section #eija7;a7 7after application of section #eija7;b77 on the severance of crude oil or natural gas from the outer ,continental ,shelf in the ,gulf of ,mexico4 4 7c7 ,clerical amendment ,the table of chapters for subtitle ,e is amended by adding at the end the following new item3 ,chapter #ef4 ,tax on severance of crude oil and natural gas from the outer ,continental ,shelf in the ,gulf of ,mexico4 4 7d7 ,effective date ,the amendments made by this section shall apply to crude oil or natural gas removed after ,december #ca1 #bjac4 #bi4 ,powder ,river ,basin 7a7 ,designation of the ,powder ,river ,basin as a coal producing region ,the ,director of the ,bureau of ,land ,management shall designate the ,powder ,river ,basin as a coal producing region4 7b7 ,report ,not later than #a year after the date of enactment of this ,act1 the ,director of the ,bureau of ,land ,management shall submit to ,congress a report that includes-- 7#a7 a study of the fair market value and the amount of royalties paid on coal leases in the ,powder ,river ,basin compared to other national and international coal markets2 and 7#b7 any policy recommendations to capture the future market value of the coal leases in the ,powder ,river ,basin4 #cj4 ,reports 7a7 ,definition of fossil-,fuel-,production subsidy ,in this section1 the term subsidy for fossil-fuel production means any direct funding1 tax treatment or incentive1 risk-reduction benefit1 financing assistance or guarantee1 royalty relief1 or other provision that provides a financial benefit to a fossil fuel company for the production of fossil fuels4 7b7 ,report to ,congress ,not later than #a year after the date of enactment of this ,act1 the ,secretary of the ,treasury1 in coordination with the ,secretary of ,energy1 shall submit to ,congress a report detailing each ,federal law 7including regulations71 other than those amended by this ,act1 as in effect on the date on which the report is submitted1 that includes a subsidy for fossil-fuel production4 7c7 ,report on modified recovery period 7#a7 ,in general ,not later than #a year after the date of enactment of this ,act1 the ,secretary1 in coordination with the ,commissioner of ,internal ,revenue1 shall submit to ,congress a report on the applicable recovery period under the accelerated cost recovery system provided in section #afh of the ,internal ,revenue ,code of #aihf for each type of property involved in fossil-fuel production1 including pipelines1 power generation property1 refineries1 and drilling equipment1 to determine if any assets are receiving a subsidy for fossil-fuel production4 7#b7 ,elimination of subsidy ,in the case of any type of property that the ,commissioner of ,internal ,revenue determines is receiving a subsidy for fossil-fuel production under such section #afh1 for property placed in service in taxable years beginning after the date of such determination1 such section #afh shall not apply4 ,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 year4