End Polluter Welfare Act of 2021

I 117TH CONGRESS 1ST SESSION H. R. 2102 To eliminate certain subsidies for fossil-fuel production. IN THE HOUSE OF REPRESENTATIVES MARCH 19, 2021 Ms. OMAR introduced the following bill; which was referred to the Committee on Ways and Means, and in addition to the Committees on Natural Re- sources, Transportation and Infrastructure, Financial Services, Science, Space, and Technology, Agriculture, and Energy and Commerce, for a pe- riod to be subsequently determined by the Speaker, in each case for con- sideration of such provisions as fall within the jurisdiction of the com- mittee concerned A BILL To eliminate certain subsidies for fossil-fuel production. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘End Polluter Welfare 4 Act of 2021’’. 5 SEC. 2. TABLE OF CONTENTS. 6 The table of contents for this Act is as follows: 7 Sec. 1. Short title. Sec. 2. Table of contents. Sec. 3. Definition of fossil fuel. Sec. 4. Royalty relief. VerDate Sep 11 2014 06:42 May 18, 2021 Jkt 019200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6211 E:\BILLS\H2102.IH H2102 pbinns on DSKJLVW7X2PROD with BILLS 2 •HR 2102 IH Sec. 5. Royalties under Mineral Leasing Act. Sec. 6. Elimination of interest payments for royalty overpayments. Sec. 7. Removal of limits on liability for offshore facilities and pipeline opera- tors. Sec. 8. Restrictions on use of appropriated funds by international financial in- stitutions for projects that support fossil fuel. Sec. 9. Fossil Energy Research and Development Program. Sec. 10. Advanced Research Projects Agency—Energy. Sec. 11. Incentives for innovative technologies. Sec. 12. Rural Utility Service loan guarantees. Sec. 13. Prohibition on use of funds by the United States International Devel- opment Finance Corporation or the Export-Import Bank of the United States for financing projects, transactions, or other ac- tivities that support fossil fuel. Sec. 14. Transportation funds for grants, loans, loan guarantees, and other di- rect assistance. Sec. 15. Elimination of exclusion of certain lenders as owners or operators under CERCLA. Sec. 16. Termination of various tax expenditures relating to fossil fuels. Sec. 17. Termination of certain deductions and credits related to fossil fuels. Sec. 18. Uniform seven-year amortization for geological and geophysical ex- penditures. Sec. 19. Natural gas gathering lines treated as 15-year property. Sec. 20. Termination of last-in, first-out method of inventory for oil, natural gas, and coal companies. Sec. 21. Repeal of percentage depletion for coal and hard mineral fossil fuels. Sec. 22. Termination of capital gains treatment for royalties from coal. Sec. 23. Modifications of foreign tax credit rules applicable to oil and gas in- dustry taxpayers receiving specific economic benefits. Sec. 24. Increase in oil spill liability trust fund financing rate. Sec. 25. Application of certain environmental taxes to synthetic crude oil. Sec. 26. Denial of deduction for removal costs and damages for certain oil spills. Sec. 27. Tax on crude oil and natural gas produced from the outer Continental Shelf in the Gulf of Mexico. Sec. 28. Repeal of corporate income tax exemption for publicly traded partner- ships with qualifying income and gains from activities relating to fossil fuels. Sec. 29. Amortization of qualified tertiary injectant expenses. Sec. 30. Amortization of development expenditures. Sec. 31. Amortization of certain mining exploration expenditures. Sec. 32. Amortization of intangible drilling and development costs in the case of oil and gas wells and geothermal wells. Sec. 33. Permanent excise tax rate for funding of Black Lung Disability Trust Fund. Sec. 34. Termination of renewable electricity production credit eligibility for re- fined coal. Sec. 35. Treatment of foreign oil related income as subpart F income. Sec. 36. Repeal of exclusion of foreign oil and gas extraction income from the determination of tested income. Sec. 37. Termination of credit for carbon oxide sequestration. Sec. 38. Powder River Basin. Sec. 39. Study and elimination of additional fossil fuel subsidies. VerDate Sep 11 2014 06:42 May 18, 2021 Jkt 019200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6211 E:\BILLS\H2102.IH H2102 pbinns on DSKJLVW7X2PROD with BILLS 3 •HR 2102 IH SEC. 3. DEFINITION OF FOSSIL FUEL. 1 In this Act, the term ‘‘fossil fuel’’ means coal, petro- 2 leum, natural gas, or any derivative of coal, petroleum, 3 or natural gas that is used for fuel. 4 SEC. 4. ROYALTY RELIEF. 5 (a) IN GENERAL.— 6 (1) OUTER CONTINENTAL SHELF LANDS ACT.— 7 Section 8(a)(3) of the Outer Continental Shelf 8 Lands Act (43 U.S.C. 1337(a)(3)) is amended— 9 (A) by striking subparagraph (B); and 10 (B) by redesignating subparagraph (C) as 11 subparagraph (B). 12 (2) ENERGY POLICY ACT OF 2005.— 13 (A) INCENTIVES FOR NATURAL GAS PRO- 14 DUCTION FROM DEEP WELLS IN THE SHALLOW 15 WATERS OF THE GULF OF MEXICO.—Section 16 344 of the Energy Policy Act of 2005 (42 17 U.S.C. 15904) is repealed. 18 (B) DEEP WATER PRODUCTION.—Section 19 345 of the Energy Policy Act of 2005 (42 20 U.S.C. 15905) is repealed. 21 (b) FUTURE PROVISIONS.—Notwithstanding any 22 other provision of law, royalty relief shall not be permitted 23 under a lease issued under section 8 of the Outer Conti- 24 nental Shelf Lands Act (43 U.S.C. 1337). 25 VerDate Sep 11 2014 06:42 May 18, 2021 Jkt 019200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H2102.IH H2102 pbinns on DSKJLVW7X2PROD with BILLS 4 •HR 2102 IH SEC. 5. ROYALTIES UNDER MINERAL LEASING ACT. 1 (a) COAL LEASES.—Section 7(a) of the Mineral 2 Leasing Act (30 U.S.C. 207(a)) is amended in the fourth 3 sentence by striking ‘‘121⁄2 per centum’’ and inserting 4 ‘‘183⁄4 percent’’. 5 (b) LEASES ON LAND ON WHICH OIL OR NATURAL 6 GAS IS DISCOVERED.—Section 14 of the Mineral Leasing 7 Act (30 U.S.C. 223) is amended in the fourth sentence 8 by striking ‘‘121⁄2 per centum’’ and inserting ‘‘183⁄4 per- 9 cent’’. 10 (c) LEASES ON LAND KNOWN OR BELIEVED TO 11 CONTAIN OIL OR NATURAL GAS.—Section 17 of the Min- 12 eral Leasing Act (30 U.S.C. 226) is amended— 13 (1) in subsection (b)— 14 (A) in paragraph (1)(A), in the fifth sen- 15 tence, by striking ‘‘12.5 percent’’ and inserting 16 ‘‘183⁄4 percent’’; and 17 (B) in paragraph (2)(A)(ii), by striking 18 ‘‘121⁄2 per centum’’ and inserting ‘‘183⁄4 per- 19 cent’’; 20 (2) in subsection (c)(1), in the second sentence, 21 by striking ‘‘12.5 percent’’ and inserting ‘‘183⁄4 per- 22 cent’’; 23 (3) in subsection (l), by striking ‘‘121⁄2 per cen- 24 tum’’ each place it appears and inserting ‘‘183⁄4 per- 25 cent’’; and 26 VerDate Sep 11 2014 06:42 May 18, 2021 Jkt 019200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H2102.IH H2102 pbinns on DSKJLVW7X2PROD with BILLS 5 •HR 2102 IH (4) in subsection (n)(1)(C), by striking ‘‘121⁄2 1 per centum’’ and inserting ‘‘183⁄4 percent’’. 2 SEC. 6. ELIMINATION OF INTEREST PAYMENTS FOR ROY- 3 ALTY OVERPAYMENTS. 4 Section 111 of the Federal Oil and Gas Royalty Man- 5 agement Act of 1982 (30 U.S.C. 1721) is amended by 6 adding at the end the following: 7 ‘‘(k) PAYMENT OF INTEREST.—Interest shall not be 8 paid on any overpayment.’’. 9 SEC. 7. REMOVAL OF LIMITS ON LIABILITY FOR OFFSHORE 10 FACILITIES AND PIPELINE OPERATORS. 11 Section 1004(a) of the Oil Pollution Act of 1990 (33 12 U.S.C. 2704(a)) is amended— 13 (1) in paragraph (3), by striking ‘‘plus 14 $75,000,000; and’’ and inserting ‘‘and the liability 15 of the responsible party under section 1002;’’; 16 (2) in paragraph (4)— 17 (A) by inserting ‘‘(except an onshore pipe- 18 line transporting diluted bitumen, bituminous 19 mixtures, or any oil manufactured from bitu- 20 men)’’ after ‘‘for any onshore facility’’; and 21 (B) by striking the period at the end and 22 inserting ‘‘; and’’; and 23 (3) by adding at the end the following: 24 VerDate Sep 11 2014 06:42 May 18, 2021 Jkt 019200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H2102.IH H2102 pbinns on DSKJLVW7X2PROD with BILLS 6 •HR 2102 IH ‘‘(5) for any onshore facility transporting di- 1 luted bitumen, bituminous mixtures, or any oil man- 2 ufactured from bitumen, the liability of the respon- 3 sible party under section 1002.’’. 4 SEC. 8. RESTRICTIONS ON USE OF APPROPRIATED FUNDS 5 BY INTERNATIONAL FINANCIAL INSTITU- 6 TIONS FOR PROJECTS THAT SUPPORT FOS- 7 SIL FUEL. 8 (a) RESCISSION OF UNOBLIGATED FUNDS.— 9 (1) IN GENERAL.—Of the unobligated balance 10 of amounts appropriated or otherwise made available 11 for a contribution of the United States to an inter- 12 national financial institution, an amount specified in 13 paragraph (2) shall be rescinded if the institution 14 provides support for a project that supports the pro- 15 duction or use of fossil fuels. 16 (2) AMOUNT SPECIFIED.—The amount specified 17 in this paragraph is an amount the Secretary of the 18 Treasury determines to be equivalent to the amount 19 of support provided by an international financial in- 20 stitution described in paragraph (1) for a project 21 that supports the production or use of fossil fuels. 22 (b) PROHIBITION ON USE OF FUTURE FUNDS.—No 23 amounts appropriated or otherwise made available for a 24 contribution of the United States to an international fi- 25 VerDate Sep 11 2014 06:42 May 18, 2021 Jkt 019200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H2102.IH H2102 pbinns on DSKJLVW7X2PROD with BILLS 7 •HR 2102 IH nancial institution may be provided to the institution un- 1 less the institution agrees to not use the amount to provide 2 support for any project that supports the production or 3 use of fossil fuels. 4 (c) INTERNATIONAL FINANCIAL INSTITUTION DE- 5 FINED.—In this section, the term ‘‘international financial 6 institution’’ has the meaning given that term in section 7 1701(c) of the International Financial Institutions Act 8 (22 U.S.C. 262r(c)). 9 SEC. 9. FOSSIL ENERGY RESEARCH AND DEVELOPMENT 10 PROGRAM. 11 (a) TERMINATION OF AUTHORITY.—Notwithstanding 12 any other provision of law, the authority of the Secretary 13 of Energy to carry out the Fossil Energy Research and 14 Development Program of the Department of Energy is 15 terminated. 16 (b) RESCISSION.—Notwithstanding any other provi- 17 sion of law— 18 (1) all amounts made available for the Fossil 19 Energy Research and Development Program that re- 20 main unobligated as of the date of enactment of this 21 Act are rescinded; and 22 (2) no amounts made available after the date of 23 enactment of this Act for the Fossil Energy Re- 24 search and Development Program shall be expended, 25 VerDate Sep 11 2014 06:42 May 18, 2021 Jkt 019200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H2102.IH H2102 pbinns on DSKJLVW7X2PROD with BILLS 8 •HR 2102 IH other than such amounts as are necessary to cover 1 costs incurred in terminating ongoing research of 2 the Fossil Energy Research and Development Pro- 3 gram, as determined by the Secretary of Energy, in 4 consultation with other appropriate Federal agen- 5 cies. 6 SEC. 10. ADVANCED RESEARCH PROJECTS AGENCY—EN- 7 ERGY. 8 None of the funds made available to the Advanced 9 Research Projects Agency—Energy shall be used to carry 10 out any project that supports fossil fuel. 11 SEC. 11. INCENTIVES FOR INNOVATIVE TECHNOLOGIES. 12 (a) IN GENERAL.—Section 1703 of the Energy Policy 13 Act of 2005 (42 U.S.C. 16513) is amended— 14 (1) in subsection (b)— 15 (A) by striking paragraphs (2) and (10); 16 and 17 (B) by redesignating paragraphs (3), (4), 18 (5), (6), (7), (8), (9), (11), and (12) as para- 19 graphs (2), (3), (4), (5), (6), (7), (8), (9), and 20 (10), respectively; 21 (2) by striking subsection (c); and 22 (3) by redesignating subsections (d) through (f) 23 as subsections (c) through (e), respectively. 24 VerDate Sep 11 2014 06:42 May 18, 2021 Jkt 019200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\H2102.IH H2102 pbinns on DSKJLVW7X2PROD with BILLS 9 •HR 2102 IH (b) CONFORMING AMENDMENT.—Section 1704 of the 1 Energy Policy Act of 2005 (42 U.S.C. 16514) is amend- 2 ed— 3 (1) by striking subsection (b); and 4 (2) by redesignating subsection (c) as sub- 5 section (b). 6 SEC. 12. RURAL UTILITY SERVICE LOAN GUARANTEES. 7 Notwithstanding any other provision of law, the Sec- 8 retary of Agriculture may not make a loan under title III 9 of the Rural Electrification Act of 1936 (7 U.S.C. 931 10 et seq.) to an applicant for the purpose of carrying out 11 any project that will use fossil fuel. 12 SEC. 13. PROHIBITION ON USE OF FUNDS BY THE UNITED 13 STATES INTERNATIONAL DEVELOPMENT FI- 14 NANCE CORPORATION OR THE EXPORT-IM- 15 PORT BANK OF THE UNITED STATES FOR FI- 16 NANCING PROJECTS, TRANSACTIONS, OR 17 OTHER ACTIVITIES THAT SUPPORT FOSSIL 18 FUEL. 19 Notwithstanding any other provision of law, no 20 amounts appropriated or otherwise made available for the 21 United States International Development Finance Cor- 22 poration or the Export-Import Bank of the United States 23 that are available for obligation on or after the date of 24 the enactment of this Act may be obligated or expended 25 VerDate Sep 11 2014 06:42 May 18, 2021 Jkt 019200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\H2102.IH H2102 pbinns on DSKJLVW7X2PROD with BILLS 10 •HR 2102 IH to support any project, transaction, or other activity that 1 supports the production or use of fossil fuels. 2 SEC. 14. TRANSPORTATION FUNDS FOR GRANTS, LOANS, 3 LOAN GUARANTEES, AND OTHER DIRECT AS- 4 SISTANCE. 5 Notwithstanding any other provision of law, any 6 amounts made available to the Department of Transpor- 7 tation (including the Federal Railroad Administration) 8 may not be used to award any grant, loan, loan guarantee, 9 or provide any other direct assistance to any rail facility 10 or port project that transports fossil fuel. 11 SEC. 15. ELIMINATION OF EXCLUSION OF CERTAIN LEND- 12 ERS AS OWNERS OR OPERATORS UNDER 13 CERCLA. 14 Section 101(20)(F) of the Comprehensive Environ- 15 mental Response, Compensation, and Liability Act of 16 1980 (42 U.S.C. 9601(20)(F)) is amended by adding at 17 the end the following: 18 ‘‘(iii) INELIGIBLE LENDERS.—The ex- 19 clusions under clauses (i) and (ii) shall not 20 apply to a person that is a lender that is— 21 ‘‘(I) an investment company reg- 22 istered under the Investment Com- 23 pany Act of 1940 (15 U.S.C. 80a–1 et 24 seq.), investment adviser (as defined 25 VerDate Sep 11 2014 06:42 May 18, 2021 Jkt 019200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\H2102.IH H2102 pbinns on DSKJLVW7X2PROD with BILLS 11 •HR 2102 IH in section 202(a) of the Investment 1 Advisers Act of 1940 (15 U.S.C. 80b– 2 2(a))), or broker or dealer (as those 3 terms are defined in section 3(a) of 4 the Securities Exchange Act of 1934 [Text truncated for display. Full text available on Congress.gov.]