Environmental Equalization and Energy Security Act of 1999

Summary: Environmental Equalization and Energy Security Act of 1999 - Amends the Internal Revenue Code to impose an excise tax on imported crude oil and petroleum products (except those imported from Canada) equal to the applicable environmental equalization fee per barrel of crude oil, as determined by the Secretary of Energy. 
States that the fee shall be the amount of the Secretary's estimate: (1) in the case of crude oil, of the average amount per barrel of the price of domestic crude oil attributable to costs of complying with U.S. environmental laws and regulations; and (2) in the case of petroleum products, of the average amount per barrel of the price of domestic petroleum products attributable to such costs. 
Exempts from such tax: (1) the sale of crude oil or petroleum products for export or for resale by the purchaser to a second purchaser for export; and (2) the sale or use of any petroleum product during any period when the President determines that it is in the national interest not to impose the tax.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Environmental Equalization and 
Energy Security Act of 1999''.

SEC. 2. EXCISE TAX ON IMPORTED CRUDE OIL AND PETROLEUM PRODUCTS.

    (a) In General.--Subtitle E of the Internal Revenue Code of 1986 
(relating to alcohol, tobacco, and certain other excise taxes) is 
amended by adding at the end thereof the following new chapter:

        ``CHAPTER 55--IMPORTED CRUDE OIL AND PETROLEUM PRODUCTS

                              ``Sec. 5891. Imposition of tax.
                              ``Sec. 5892. Determination of prices.
                              ``Sec. 5893. Definitions.
                              ``Sec. 5894. Registration.
                              ``Sec. 5895. Procedures; returns; 
                                        penalties.

``SEC. 5891. IMPOSITION OF TAX.

    ``(a) Imposition of Tax.--In addition to any other tax imposed 
under this title, an excise tax is hereby imposed on--
            ``(1) the first sale within the United States of--
                    ``(A) any crude oil, or
                    ``(B) any petroleum product,
        that has been imported into the United States, and
            ``(2) the use within the United States of--
                    ``(A) any crude oil, or
                    ``(B) any petroleum product,
        that has been imported into the United States if no tax has 
        been imposed with respect to such crude oil or petroleum 
        product prior to such use.
    ``(b) Rates of Tax.--
            ``(1) Crude oil.--The taxes imposed by paragraph (1)(A) and 
        (2)(A) of subsection (a) shall be imposed at the rate equal to 
        the applicable environmental equalization fee per barrel of 
        crude oil.
            ``(2) Petroleum products.--The taxes imposed by paragraph 
        (1)(B) and (2)(B) of subsection (a) shall be imposed at the 
        rate equal to the applicable environmental equalization fee per 
        barrel of petroleum products.
            ``(3) Fractional parts of barrels.--In the case of a 
        fraction of a barrel, the taxes imposed by subsection (a) shall 
        be the same fraction of the amount of such tax imposed on the 
        whole barrel.
    ``(c) Liability for Payment of Tax.--
            ``(1) Sales.--The taxes imposed by subsection (a)(1) shall 
        be paid by the first person who sells the crude oil or 
        petroleum product within the United States.
            ``(2) Use.--The taxes imposed by subsection (a)(2) shall be 
        paid by the person who uses the crude oil or petroleum product.
    ``(d) Exemptions.--
            ``(1) Exports.--
                    ``(A) In general.--Under regulations prescribed by 
                the Secretary, no tax shall be imposed under this 
                chapter on the sale of crude oil or petroleum products 
                for export or for resale by the purchaser to a second 
                purchaser for export.
                    ``(B) Proof of export.--Where any crude oil or 
                petroleum product has been sold free of tax under 
                subparagraph (A), such subparagraph shall cease to 
                apply with respect to the sale of such crude oil or 
                petroleum product unless, within the 6-month period 
                which begins on the date of the sale, the seller 
                receives proof that the crude oil or petroleum product 
                has been exported.
            ``(2) Products in the national interest.--No tax shall be 
        imposed under this chapter on the sale or use of any petroleum 
        product during any period if the President determines that it 
        is in the national interest not to impose the tax under this 
        chapter on such product during such period.
            ``(3) Products from canada.--No tax shall be imposed by 
        this chapter on the sale or use of--
                    ``(A) any crude oil produced from a well located in 
                Canada, or
                    ``(B) any petroleum product produced from crude oil 
                described in subparagraph (A).

``SEC. 5892. DETERMINATION OF ENVIRONMENTAL EQUALIZATION FEE.

    ``(a) Environmental Equalization Fee.--For purposes of this 
chapter, the environmental equalization fee is the amount determined by 
the Secretary of Energy under subsection (b).
    ``(b) Determination by Secretary of Energy.--The Secretary of 
Energy, after conducting a study and in consultation with the 
Administrator of the Environmental Protection Agency and 
representatives from the domestic petroleum industry, shall from time 
to time determine the amount of the environmental equalization fee. The 
amount shall be the Secretary's estimate--
            ``(1) in the case of crude oil, of the average amount per 
        barrel of the price of domestic crude oil which is attributable 
        to costs of complying with environmental laws and regulations 
        of the United States; and
            ``(2) in the case of petroleum products, of the average 
        amount per barrel of the price of domestic petroleum products 
        which is attributable to such costs.

``SEC. 5893. DEFINITIONS.

    ``For purposes of this chapter--
            ``(1) Crude oil.--The term `crude oil' means crude oil (as 
        defined in section 4612(a)(1)) other than crude oil produced 
        from a well located in the United States (as defined in section 
        4612(a)(4)).
            ``(2) Domestic crude oil.--The term `domestic crude oil' 
        means crude oil produced from a well located in the United 
        States.
            ``(3) Barrel.--The term `barrel' means 42 United States 
        gallons.
            ``(4) Petroleum product.--The term `petroleum product' has 
        the meaning given such term under section 4612(a)(3).
            ``(5) Export.--The term `export' includes shipment to a 
        possession of the United States, and the term `exported' 
        includes shipment to a possession of the United States.

``SEC. 5894. REGISTRATION.

    ``Every person subject to tax under section 5891 shall, before 
incurring any liability for tax under such section, register with the 
Secretary.''.
    (b) Conforming Amendment.--The table of chapters for subtitle E of 
such Code is amended by adding at the end thereof the following new 
item:

                              ``Chapter 55. Imported crude oil and 
                                        petroleum products.''
    (c) Deductibility of Imported Crude Oil Tax.--The first sentence of 
section 164(a) of such Code (relating to deduction for taxes) is 
amended by inserting after paragraph (5) the following new paragraph:
            ``(6) The taxes imposed by section 5891 (relating to 
        imported crude oil and petroleum products).''
    (c) Effective Date.--The amendments made by this Act shall take 
effect on the 30th day after the date of the enactment of this Act.