H.R.1748 - Taxpayer and Gas Price Relief Act of 2011
To provide consumers relief from high gas prices, and for other purposes.
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Mr. BISHOP of New York (for himself, Mr. MARKEY, Ms. CHU, and Mr. LARSON of Connecticut) introduced the following bill; which was referred to the Committee on Energy and Commerce, and in addition to the Committees on Ways and Means and Natural Resources, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concernedCommentsClose CommentsPermalink
SECTION 1. SHORT TITLE.
SEC. 2. TABLE OF CONTENTS.
TITLE I--DENIAL OF CERTAIN TAX BENEFITS TO MAJOR INTEGRATED OIL COMPANIES
TITLE II--DEFICIT REDUCTION THROUGH FAIR OIL ROYALTIES
TITLE III--PROTECTION FROM PRICE GOUGING
TITLE IV--STRATEGIC PETROLEUM RESERVE
SEC. 101. DEDUCTION FOR INCOME ATTRIBUTABLE TO DOMESTIC PRODUCTION ACTIVITIES NOT ALLOWED WITH RESPECT TO OIL AND GAS ACTIVITIES OF MAJOR INTEGRATED OIL COMPANIES.
(a) In General- Subparagraph (B) of section 199(c)(4) of the Internal Revenue Code of 1986 is amended by striking ‘and’ at the end of clause (ii), by striking the period at the end of clause (iii) and inserting ‘, and’, and by inserting after clause (iii) the following new clause:CommentsClose CommentsPermalink
SEC. 102. MAJOR INTEGRATED OIL COMPANIES INELIGIBLE FOR LAST-IN, FIRST-OUT METHOD OF INVENTORY.
(a) In General- Section 471 of the Internal Revenue Code of 1986 is amended by redesignating subsection (c) as subsection (d) and by inserting after subsection (b) the following new subsection:CommentsClose CommentsPermalink
(2) 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 the enactment of this Act--CommentsClose CommentsPermalink
(C) if the net amount of the adjustments required to be taken into account by the taxpayer under section 481 of the Internal Revenue Code of 1986 is positive, such amount shall be taken into account over a period of 8 years beginning with such first taxable year.CommentsClose CommentsPermalink
SEC. 103. LIMITATION ON DEDUCTION FOR INTANGIBLE DRILLING AND DEVELOPMENT COSTS OF MAJOR INTEGRATED OIL COMPANIES IN THE CASE OF OIL AND GAS WELLS.
(a) In General- Subsection (c) of section 263 of the Internal Revenue Code of 1986 is amended by adding at the end the following new sentence: ‘This subsection shall not apply to intangible drilling and development costs paid or incurred by any major integrated oil company (as defined in section 167(h)(5)) in the case of oil and gas wells.’.CommentsClose CommentsPermalink
(b) Conforming Amendment- Subsection (c) of section 263 of such Code is amended by inserting ‘(determined without regard to the last sentence of this subsection)’ after ‘in the same manner as such expenses are deductible in the case of oil and gas wells’.CommentsClose CommentsPermalink
SEC. 201. SHORT TITLE.
SEC. 202. ELIGIBILITY FOR NEW LEASES AND THE TRANSFER OF LEASES.
(1) IN GENERAL- The Secretary shall not issue any new lease that authorizes the production of oil or natural gas under the Outer Continental Shelf Lands Act (
(ii) was issued a covered lease before the date of enactment of this Act, but transferred the covered lease to another person or entity (including a subsidiary or affiliate of the lessee) after the date of enactment of this Act; orCommentsClose CommentsPermalink
(A) IN GENERAL- For purposes of paragraph (1), if there are multiple lessees that own a share of a covered lease, the Secretary may implement separate agreements with any lessee with a share of the covered lease that modifies the payment responsibilities with respect to the share of the lessee to include price thresholds that are equal to or less than the price thresholds described in clauses (v) through (vii) of section 8(a)(3)(C) of the Outer Continental Shelf Lands Act (
(B) TREATMENT OF SHARE AS COVERED LEASE- Beginning on the effective date of an agreement under subparagraph (A), any share subject to the agreement shall not constitute a covered lease with respect to any lessees that entered into the agreement.CommentsClose CommentsPermalink
(b) Transfers- A lessee or any other person who has any direct or indirect interest in, or who derives a benefit from, a lease shall not be eligible to obtain by sale or other transfer (including through a swap, spinoff, servicing, or other agreement) any covered lease, the economic benefit of any covered lease, or any other lease for the production of oil or natural gas in the Gulf of Mexico under the Outer Continental Shelf Lands Act (
(1) renegotiated each covered lease with respect to which the lessee or person is a lessee, to modify the payment responsibilities of the lessee or person to include price thresholds that are equal to or less than the price thresholds described in clauses (v) through (vii) of section 8(a)(3)(C) of the Outer Continental Shelf Lands Act (
(2) entered into an agreement with the Secretary to modify the terms of all covered leases of the lessee or other person to include limitations on royalty relief based on market prices that are equal to or less than the price thresholds described in clauses (v) through (vii) of section 8(a)(3)(C) of the Outer Continental Shelf Lands Act (
(c) Use of Amounts for Deficit Reduction- Notwithstanding any other provision of law, any amounts received by the United States as rentals or royalties under covered leases shall be deposited in the Treasury and used for Federal budget deficit reduction or, if there is no Federal budget deficit, for reducing the Federal debt in such manner as the Secretary of the Treasury considers appropriate.CommentsClose CommentsPermalink
(B) issued by the Department of the Interior under section 304 of the Outer Continental Shelf Deep Water Royalty Relief Act (
(C) not subject to limitations on royalty relief based on market price that are equal to or less than the price thresholds described in clauses (v) through (vii) of section 8(a)(3)(C) of the Outer Continental Shelf Lands Act (
SEC. 203. PRICE THRESHOLDS FOR ROYALTY SUSPENSION PROVISIONS.
The Secretary of the Interior shall agree to a request by any lessee to amend any lease issued for any Central and Western Gulf of Mexico tract in the period of January 1, 1996, through November 28, 2000, to incorporate price thresholds applicable to royalty suspension provisions, that are equal to or less than the price thresholds described in clauses (v) through (vii) of section 8(a)(3)(C) of the Outer Continental Shelf Lands Act (
SEC. 301. SHORT TITLE.
SEC. 302. UNCONSCIONABLE PRICING OF GASOLINE AND OTHER PETROLEUM DISTILLATES DURING EMERGENCIES.
(1) IN GENERAL- It shall be unlawful for any person to sell, at wholesale or at retail in an area and during a period of an international crisis affecting the oil markets proclaimed under paragraph (2), gasoline or any other petroleum distillate covered by a proclamation issued under paragraph (2) at a price that--CommentsClose CommentsPermalink
(A) IN GENERAL- The President may issue a proclamation of an international crisis affecting the oil markets and may designate any area within the jurisdiction of the United States, where the prohibition in paragraph (1) shall apply. The proclamation shall state the geographic area covered, the gasoline or other petroleum distillate covered, and the time period that such proclamation shall be in effect.CommentsClose CommentsPermalink
(i) may not apply for a period of more than 30 consecutive days, but may be renewed for such consecutive periods, each not to exceed 30 days, as the President determines appropriate; andCommentsClose CommentsPermalink
(A) whether the amount charged by such person for the applicable gasoline or other petroleum distillate at a particular location in an area covered by a proclamation issued under paragraph (2) during the period such proclamation is in effect--CommentsClose CommentsPermalink
(i) grossly exceeds the average price at which the applicable gasoline or other petroleum distillate was offered for sale by that person during the 30 days prior to such proclamation;CommentsClose CommentsPermalink
(ii) grossly exceeds the price at which the same or similar gasoline or other petroleum distillate was readily obtainable in the same area from other competing sellers during the same period;CommentsClose CommentsPermalink
(iii) reasonably reflected additional costs, not within the control of that person, that were paid, incurred, or reasonably anticipated by that person, or reflected additional risks taken by that person to produce, distribute, obtain, or sell such product under the circumstances; andCommentsClose CommentsPermalink
(B) whether the quantity of gasoline or other petroleum distillate the person produced, distributed, or sold in an area covered by a proclamation issued under paragraph (2) during a 30-day period following the issuance of such proclamation increased over the quantity that that person produced, distributed, or sold during the 30 days prior to such proclamation, taking into account usual seasonal demand variations.CommentsClose CommentsPermalink
(1) the term ‘wholesale’, with respect to sales of gasoline or other petroleum distillates, means either truckload or smaller sales of gasoline or petroleum distillates where title transfers at a product terminal or a refinery, and dealer tank wagon sales of gasoline or petroleum distillates priced on a delivered basis to retail outlets; andCommentsClose CommentsPermalink
(2) the term ‘retail’, with respect to sales of gasoline or other petroleum distillates, includes all sales to end users such as motorists as well as all direct sales to other end users such as agriculture, industry, residential, and commercial consumers.CommentsClose CommentsPermalink
SEC. 303. ENFORCEMENT BY THE FEDERAL TRADE COMMISSION.
(a) Enforcement by FTC- A violation of section 302 shall be treated as a violation of a rule defining an unfair or deceptive act or practice prescribed under section 18(a)(1)(B) of the Federal Trade Commission Act (
(1) IN GENERAL- Notwithstanding the penalties set forth under the Federal Trade Commission Act, any person who violates section 302 with actual knowledge or knowledge fairly implied on the basis of objective circumstances shall be subject to--CommentsClose CommentsPermalink
(2) METHOD- The penalties provided by paragraph (1) shall be obtained in the same manner as civil penalties obtained under section 5 of the Federal Trade Commission Act (
(B) the court shall take into consideration, among other factors, the seriousness of the violation and the efforts of the person committing the violation to remedy the harm caused by the violation in a timely manner.CommentsClose CommentsPermalink
SEC. 304. CRIMINAL PENALTIES.
(a) In General- In addition to any penalty applicable under section 303, any person who violates section 302 shall be fined under title 18, United States Code, in an amount not to exceed $500,000,000.CommentsClose CommentsPermalink
(b) Enforcement- The criminal penalty provided by subsection (a) may be imposed only pursuant to a criminal action brought by the Attorney General or other officer of the Department of Justice. The Attorney General shall give priority to enforcement actions concerning companies with total United States wholesale or retail sales of gasoline and other petroleum distillates in excess of $10,000,000,000 per year.CommentsClose CommentsPermalink
SEC. 305. ENFORCEMENT AT RETAIL LEVEL BY STATE ATTORNEYS GENERAL.
(a) In General- A State, as parens patriae, may bring a civil action on behalf of its residents in an appropriate district court of the United States to enforce the provisions of section 302 of this title, or to impose the civil penalties authorized by section 303(b)(1)(B), whenever the attorney general of the State has reason to believe that the interests of the residents of the State have been or are being threatened or adversely affected by a violation of this title or a regulation under this title, involving a retail sale.CommentsClose CommentsPermalink
(b) Notice- The State shall serve written notice to the Federal Trade Commission of any civil action under subsection (a) prior to initiating such civil action. The notice shall include a copy of the complaint to be filed to initiate such civil action, except that if it is not feasible for the State to provide such prior notice, the State shall provide such notice immediately upon instituting such civil action.CommentsClose CommentsPermalink
(d) Construction- For purposes of bringing any civil action under subsection (a), nothing in this section shall prevent the attorney general of a State from exercising the powers conferred on the attorney general by the laws of such State to conduct investigations or to administer oaths or affirmations or to compel the attendance of witnesses or the production of documentary and other evidence.CommentsClose CommentsPermalink
(3) a person who participated with the defendant in an alleged violation that is being litigated in the civil action may be joined in the civil action without regard to the residence of the person.CommentsClose CommentsPermalink
(f) Limitation on State Action While Federal Action Is Pending- If the Federal Trade Commission has instituted a civil action or an administrative action for violation of this title, no State attorney general, or official or agency of a State, may bring an action under this subsection during the pendency of that action against any defendant named in the complaint of the Federal Trade Commission or the other agency for any violation of this title alleged in the complaint.CommentsClose CommentsPermalink
(g) Enforcement of State Law- Nothing contained in this section shall prohibit an authorized State official from proceeding in State court to enforce a civil or criminal statute of such State.CommentsClose CommentsPermalink
SEC. 306. EFFECT ON OTHER LAWS.
(a) Other Authority of Federal Trade Commission- Nothing in this title shall be construed to limit or affect in any way the Federal Trade Commission’s authority to bring enforcement actions or take any other measure under the Federal Trade Commission Act (
SEC. 401. SHORT TITLE.
SEC. 402. DEFINITION.
SEC. 403. PETROLEUM PRODUCT RESERVE.
Section 154(a) of the Energy Policy and Conservation Act (
SEC. 404. SALE OF OIL FROM THE STRATEGIC PETROLEUM RESERVE AND ACQUISITION OF REFINED PETROLEUM PRODUCT.
(1) AUTHORITY- Notwithstanding section 161 of the Energy Policy and Conservation Act (
(A) deposit the cash proceeds from sales under subparagraph (A) into the SPR Petroleum Account established under section 167 of the Energy Policy and Conservation Act (
(B) from the cash proceeds deposited pursuant to paragraph (2), withdraw the amount necessary to pay for the direct administrative and operational costs of the sale and acquisition, including for acquisition and maintenance of, and improvements to, storage facilities.CommentsClose CommentsPermalink
(1) IN GENERAL- The sale and acquisition described in subsection (a) may require the offer for sale of a total quantity of no more than 30,000,000 barrels of petroleum from the Strategic Petroleum Reserve. The sale may commence within 180 days after the date of enactment of this Act and may end not later than 3 years after such date of enactment. In no event shall the Secretary sell barrels of oil under subsection (a) that would result in a Strategic Petroleum Reserve that contains fewer than 90 percent of the total amount of barrels in the Strategic Petroleum Reserve as of the date of enactment of this Act.CommentsClose CommentsPermalink
SEC. 405. REPORT TO CONGRESS.
(3) describing efforts the Department of Energy has taken to ensure that distributors and importers are not discouraged from maintaining and increasing supplies of refined petroleum products;CommentsClose CommentsPermalink
(4) describing actions that the Department of Energy has taken and plans to take to ensure quality of refined petroleum product in the Reserve, including the rotation of product stored; andCommentsClose CommentsPermalink
SEC. 406. STRATEGIC PETROLEUM RESERVE DRAWDOWN AND EXCHANGE IN PUBLIC INTEREST.
‘(1) GENERAL AUTHORITY- If, after consultation with the Secretary of Energy, the Secretary of Defense, and the Chairman of the Federal Trade Commission, the President finds that a circumstance, other than those described in subsections (d) or (h) of this section, exists of such significance and scope that action under this subsection would be warranted to address market manipulation or otherwise be in the public interest, then the President may instruct the Secretary to drawdown and sell or exchange petroleum product from the Reserve under this subsection.CommentsClose CommentsPermalink
‘(3) REPORT TO CONGRESS- At the end of any month during which there is a drawdown and sale of petroleum products from the Reserve under this subsection, the Secretary shall transmit a report to the Congress containing an account of the drawdown and sale, along with an assessment of the effects of the drawdown and sale.CommentsClose CommentsPermalink
‘(4) REPLENISHMENT- In the case of a drawdown and sale or exchange under this subsection, the Secretary shall provide for the timely replenishment of the Reserve in accordance with the objectives and procedures set forth in section 160.’.CommentsClose CommentsPermalink