I 

110TH CONGRESS 

1ST SESSION H. R. 2415 

To reduce the price of gasoline by allowing for offshore drilling, eliminating 

Federal obstacles to constructing refineries and providing incentives for 

investment in refineries, suspending Federal fuel taxes when gasoline 

prices reach a benchmark amount, and promoting free trade. 

IN THE HOUSE OF REPRESENTATIVES 

MAY 21, 2007 

Mr. PAUL introduced the following bill; which was referred to the Committee 

on Ways and Means, and in addition to the Committees on Natural Resources and Financial Services, 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 concerned 

A BILL 

To reduce the price of gasoline by allowing for offshore 

drilling, eliminating Federal obstacles to constructing refineries and providing incentives for investment in refineries, suspending Federal fuel taxes when gasoline prices 

reach a benchmark amount, and promoting free trade. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘Affordable Gas Price Act’’. 

6 (b) TABLE OF CONTENTS.— 

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Sec. 1. Short title; table of contents. 

Sec. 2. Findings. 

Sec. 3. Termination of restrictions on oil and natural gas development on Federal lands. 

Sec. 4. Limitation of suits under National Environmental Policy Act of 1969. 

Sec. 5. Incentives for investment in oil refineries. 

Sec. 6. Suspension of fuel taxes on highway motor fuels when weekly United 

States retail gasoline prices exceed benchmark. 

Sec. 7. Increase in mileage reimbursement rates. 

Sec. 8. Termination of application of title IV of the Trade Act of 1974 to the 

Russian Federation and Kazakhstan. 

Sec. 9. Study on effects of oil prices on monetary policy. 

1 SEC. 2. FINDINGS. 

2 Congress finds the following: 

3 (1) In recent months gas prices across the 

4 country have risen to as much as over $4 per gallon. 

5 (2) High fuel costs retard economic growth and 

6 diminish the quality of life for all Americans. 

7 (3) The trucking industry is particularly hard 

8 hit by high fuel prices. 

9 (4) Attempts to address the issue of high gaso10 line costs by increasing government involvement in 

11 the market through measures such as price controls 

12 will only lead to shortages, rationing, and a return 

13 of gasoline lines. 

14 (5) The Federal regulations restricting drilling 

15 impose prohibitive costs on the development of new 

16 sources of energy, artificially inflating the price of 

17 gas. 

18 (6) Federal gas taxes increase the price of oil 

19 thus burdening American families, business, and 

20 truckers. 

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1 (7) Allowing private parties to delay, or even 

2 halt, the construction of new refineries through liti3 gation over the National Environmental Protection 

4 Act’s Environmental Impact Statement requirement 

5 reduces the supply of gas thus raising gas prices. 

6 (8) The so-called Jackson-Vanik (‘‘freedom-of7 emigration’’) amendment (section 402 of the Trade 

8 Act of 1974) was a United States reaction to the 

9 Soviet Union’s highly restrictive emigration policy of 

10 the time. 

11 (9) By 2005, some 15 years after the end of 

12 communist rule over the Soviet Union, successor 

13 states Russia and Kazakhstan allow their citizens 

14 the right and opportunity to emigrate, free of any 

15 heavy tax on the visas or other documents required 

16 for emigration and free of any other tax, levy, fine, 

17 fee, or other charge on any citizens as a consequence 

18 of the desire of such citizens to emigrate to the 

19 country of their choice. 

20 (10) Elimination of the Jackson-Vanik amend21 ment’s threat of trade-restricting provisions would 

22 increase the United States access to oil supplies 

23 from non-Arab countries, thus lowering gas prices. 

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1 (11) The adoption of a monetary system of fiat 

2 currency unbacked by any ties to gold may have con3 tributed to the raise in gas prices. 

4 SEC. 3. TERMINATION OF RESTRICTIONS ON OIL AND NAT5 URAL GAS DEVELOPMENT ON FEDERAL 

6 LANDS. 

7 (a) OUTER CONTINENTAL SHELF.— 

8 (1) TERMINATION OF LAWS PROHIBITING EX9 PENDITURES FOR NATURAL GAS LEASING AND

10 PRELEASING ACTIVITIES.—All provisions of existing 

11 Federal law prohibiting the spending of appropriated 

12 funds to conduct oil or natural gas leasing and 

13 preleasing activities for any area of the Outer Conti14 nental Shelf shall have no force or effect. 

15 (2) REVOCATION OF EXISTING PRESIDENTIAL

16 WITHDRAWALS.—All existing withdrawals by the 

17 President under the authority of section 12 of the 

18 Outer Continental Shelf Lands Act (43 U.S.C. 

19 1341) are hereby revoked and are no longer in effect 

20 with respect to the leasing of areas for exploration 

21 for, and development and production of, oil or nat22 ural gas. 

23 (b) COASTAL PLAIN OF ALASKA.—Sections 1002(i) 

24 and 1003 of the Alaska National Interest Lands Con25 servation Act (16 U.S.C. 3142(i) and 3143) are repealed. 

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1 SEC. 4. LIMITATION OF SUITS UNDER NATIONAL ENVIRON2 MENTAL POLICY ACT OF 1969. 

3 Section 102 of the National Environmental Policy 

4 Act of 1969 (42 U.S.C. 4332) is amended by inserting 

5 ‘‘(a) IN GENERAL.—’’ before the first sentence, and by 

6 adding at the end the following: 

7 ‘‘(b) LIMITATION ON SUITS.—A statement required 

8 under subsection (a)(2)(C) is not subject to judicial re9 view.’’. 

10 SEC. 5. INCENTIVES FOR INVESTMENT IN OIL REFINERIES. 

11 (a) INCREASE OF EXPENSING FOR REFINERIES.— 

12 (1) IN GENERAL.—Subsection (a) of section 

13 179C of the Internal Revenue Code of 1986 (relat14 ing to election to expense certain refineries) is 

15 amended by striking ‘‘50 percent’’ and inserting 

16 ‘‘100 percent’’. 

17 (2) EFFECTIVE DATE.—The amendments made 

18 by this subsection shall take effect as if included in 

19 section 1323 of the Energy Policy Act of 2005. 

20 (b) CLASS LIFE FOR REFINERIES.— 

21 (1) IN GENERAL.—Subparagraph (B) of section 

22 168(e)(3) of the Internal Revenue Code of 1986 (re23 lating to 5-year property) is amended by striking 

24 ‘‘and’’ at the end of clause (v), by striking the pe25 riod at the end of clause (vi) and inserting ‘‘, and’’, 

26 and by adding at the end the following new clause: 

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1 ‘‘(vii) any petroleum refining prop2 erty.’’. 

3 (2) PETROLEUM REFINING ASSET.—Section 

4 168(i) of such Code is amended by adding at the 

5 end the following new paragraph: 

6 ‘‘(18) PETROLEUM REFINING PROPERTY.— 

7 ‘‘(A) IN GENERAL.—The term ‘petroleum 

8 refining property’ means any asset for petro9 leum refining, including assets used for the dis10 tillation, fractionation, and catalytic cracking of 

11 crude petroleum into gasoline and its other 

12 components. 

13 ‘‘(B) ASSET MUST MEET ENVIRONMENTAL

14 LAWS.—Such term shall not include any asset 

15 which does not meet all applicable environ16 mental laws in effect on the date such asset was 

17 placed in service. For purposes of the preceding 

18 sentence, a waiver under the Clean Air Act 

19 shall not be taken into account in determining 

20 whether the applicable environmental laws have 

21 been met. 

22 ‘‘(C) SPECIAL RULE FOR MERGERS AND

23 ACQUISITIONS.—Such term shall not include 

24 any asset with respect to which a deduction was 

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1 taken under subsection (e)(3)(B) by any other 

2 taxpayer in any preceding year.’’. 

3 (3) EFFECTIVE DATE.— 

4 (A) IN GENERAL.—The amendments made 

5 by this subsection shall apply to refineries 

6 placed in service after the date of the enact7 ment of this Act. 

8 (B) EXCEPTION.—The amendments made 

9 by this section shall not apply to any refinery 

10 with respect to which the taxpayer has entered 

11 into a binding contract for the construction 

12 thereof on or before the date of the enactment 

13 of this Act. 

14 SEC. 6. SUSPENSION OF FUEL TAXES ON HIGHWAY MOTOR 

15 FUELS WHEN WEEKLY UNITED STATES RE16 TAIL GASOLINE PRICES EXCEED BENCH17 MARK. 

18 (a) IN GENERAL.—Section 4081 of the Internal Rev19 enue Code of 1986 (relating to imposition of tax on motor 

20 and aviation fuels) is amended by adding at the end the 

21 following new subsection: 

22 ‘‘(f) SUSPENSION OF HIGHWAY MOTOR FUEL TAXES

23 WHEN RETAIL GASOLINE EXCEEDS BENCHMARK.— 

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1 ‘‘(1) IN GENERAL.—During any suspension pe2 riod, the tax imposed by this section or section 4041 

3 on highway motor fuel shall be suspended. 

4 ‘‘(2) DEFINITIONS AND SPECIAL RULE.—For 

5 purposes of this subsection— 

6 ‘‘(A) SUSPENSION PERIOD.—The term 

7 ‘suspension period’ means the period— 

8 ‘‘(i) beginning on the date on which 

9 the weekly United States retail gasoline 

10 price, regular grade (as published by the 

11 Energy Information Administration, De12 partment of Energy), inclusive of such tax, 

13 is greater than $3.00 per gallon, and 

14 ‘‘(ii) ending on the date on which such 

15 price (as so published), without regard to 

16 this subsection, does not exceed $3.00 per 

17 gallon. 

18 ‘‘(B) HIGHWAY MOTOR FUEL.—The term 

19 ‘highway motor fuel’ means any fuel subject to 

20 tax under this section or section 4041 other 

21 than aviation gasoline and aviation-grade ker22 osene.’’. 

23 (b) MAINTENANCE OF TRUST FUNDS DEPOSITS; 

24 AMOUNTS APPROPRIATED TO TRUST FUNDS TREATED AS

25 TAXES.— 

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1 (1) IN GENERAL.—There is hereby appro2 priated (out of any money in the Treasury not other3 wise appropriated) to each trust fund which would 

4 (but for this subsection) receive reduced revenues as 

5 a result of a suspension in a rate of tax by reason 

6 of section 4081(f)(1) of the Internal Revenue Code 

7 of 1986 (as added by this section) an amount equal 

8 to such reduction in revenues. Amounts appropriated 

9 by the preceding sentence to any trust fund— 

10 (A) shall be transferred from the general 

11 fund at such times and in such manner as to 

12 replicate to the extent possible the transfers 

13 which would have occurred had such section 

14 4081(f)(1) not been enacted, and 

15 (B) shall be treated for all purposes of 

16 Federal law as taxes received under the appro17 priate section referred to in such section 

18 4081(f)(1). 

19 (c) EFFECTIVE DATE.—The amendment made by 

20 this section shall take effect on the date of the enactment 

21 of this Act. 

22 (d) FLOOR STOCK REFUNDS.— 

23 (1) IN GENERAL.—If— 

24 (A) before the tax suspension date, tax has 

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1 nal Revenue Code of 1986 on any highway 

2 motor fuel, and 

3 (B) on such date such fuel is held by a 

4 dealer and has not been used and is intended 

5 for sale, 

6 there shall be credited or refunded (without interest) 

7 to the person who paid such tax (hereafter in this 

8 subsection referred to as the ‘‘taxpayer’’) an amount 

9 equal to the excess of the tax paid by the taxpayer 

10 over the tax which would be imposed on such fuel 

11 had the taxable event occurred on such date. 

12 (2) TIME FOR FILING CLAIMS.—No credit or re13 fund shall be allowed or made under this subsection 

14 unless— 

15 (A) claim therefor is filed with the Sec16 retary of the Treasury before the date which is 

17 6 months after the tax suspension date based 

18 on a request submitted to the taxpayer before 

19 the date which is 3 months after the tax sus20 pension date by the dealer who held the high21 way motor fuel on such date, and 

22 (B) the taxpayer has repaid or agreed to 

23 repay the amount so claimed to such dealer or 

24 has obtained the written consent of such dealer 

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1 to the allowance of the credit or the making of 

2 the refund. 

3 (3) EXCEPTION FOR FUEL HELD IN RETAIL

4 STOCKS.—No credit or refund shall be allowed under 

5 this subsection with respect to any highway motor 

6 fuel in retail stocks held at the place where intended 

7 to be sold at retail. 

8 (4) DEFINITIONS.—For purposes of this sub9 section— 

10 (A) TAX SUSPENSION DATE.—The term 

11 ‘‘tax suspension date’’ means the first day of 

12 any suspension period in effect under section 

13 4081(f) of the Internal Revenue Code of 1986 

14 (as added by subsection (a) of this section). 

15 (B) OTHER TERMS.—The terms ‘‘dealer’’ 

16 and ‘‘held by a dealer’’ have the respective 

17 meanings given to such terms by section 6412 

18 of such Code. 

19 (5) CERTAIN RULES TO APPLY.—Rules similar 

20 to the rules of subsections (b) and (c) of section 

21 6412 of such Code shall apply for purposes of this 

22 subsection. 

23 (e) FLOOR STOCKS TAX.— 

24 (1) IMPOSITION OF TAX.—In the case of any 

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1 tion date by any person, there is hereby imposed a 

2 floor stocks tax equal to the excess of the tax which 

3 would be imposed on such fuel had the taxable event 

4 occurred on such date over the tax (if any) pre5 viously paid (and not credited or refunded) on such 

6 fuel. 

7 (2) LIABILITY FOR TAX AND METHOD OF PAY8 MENT.— 

9 (A) LIABILITY FOR TAX.—The person 

10 holding highway motor fuel on the tax restora11 tion date to which the tax imposed by para12 graph (1) applies shall be liable for such tax. 

13 (B) METHOD OF PAYMENT.—The tax im14 posed by paragraph (1) shall be paid in such 

15 manner as the Secretary shall prescribe. 

16 (C) TIME FOR PAYMENT.—The tax im17 posed by paragraph (1) shall be paid on or be18 fore the 45th day after the tax restoration date. 

19 (3) DEFINITIONS.—For purposes of this sub20 section— 

21 (A) TAX RESTORATION DATE.—The term 

22 ‘‘tax restoration date’’ means the first day after 

23 the suspension period (as defined in section 

24 4081(f) of the Internal Revenue Code of 1986). 

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1 (B) HIGHWAY MOTOR FUEL.—The term 

2 ‘‘highway motor fuel’’ has the meaning given to 

3 such term by section 4081(f) of such Code. 

4 (C) HELD BY A PERSON.—A highway 

5 motor fuel shall be considered as held by a per6 son if title thereto has passed to such person 

7 (whether or not delivery to the person has been 

8 made). 

9 (D) SECRETARY.—The term ‘‘Secretary’’ 

10 means the Secretary of the Treasury or the 

11 Secretary’s delegate. 

12 (4) EXCEPTION FOR EXEMPT USES.—The tax 

13 imposed by paragraph (1) shall not apply to any 

14 highway motor fuel held by any person exclusively 

15 for any use to the extent a credit or refund of the 

16 tax is allowable for such use. 

17 (5) EXCEPTION FOR CERTAIN AMOUNTS OF

18 FUEL.— 

19 (A) IN GENERAL.—No tax shall be im20 posed by paragraph (1) on any highway motor 

21 fuel held on the tax restoration date by any per22 son if the aggregate amount of such highway 

23 motor fuel held by such person on such date 

24 does not exceed 2,000 gallons. The preceding 

25 sentence shall apply only if such person submits 

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1 to the Secretary (at the time and in the manner 

2 required by the Secretary) such information as 

3 the Secretary shall require for purposes of this 

4 subparagraph. 

5 (B) EXEMPT FUEL.—For purposes of sub6 paragraph (A), there shall not be taken into ac7 count any highway motor fuel held by any per8 son which is exempt from the tax imposed by 

9 paragraph (1) by reason of paragraph (4). 

10 (C) CONTROLLED GROUPS.—For purposes 

11 of this subsection— 

12 (i) CORPORATIONS.— 

13 (I) IN GENERAL.—All persons 

14 treated as a controlled group shall be 

15 treated as 1 person. 

16 (II) CONTROLLED GROUP.—The 

17 term ‘‘controlled group’’ has the 

18 meaning given to such term by sub19 section (a) of section 1563 of such 

20 Code; except that for such purposes 

21 the phrase ‘‘more than 50 percent’’ 

22 shall be substituted for the phrase ‘‘at 

23 least 80 percent’’ each place it ap24 pears in such subsection. 

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1 (ii) NONINCORPORATED PERSONS

2 UNDER COMMON CONTROL.—Under regula3 tions prescribed by the Secretary, prin4 ciples similar to the principles of subpara5 graph (A) shall apply to a group of per6 sons under common control if 1 or more of 

7 such persons is not a corporation. 

8 (6) OTHER LAWS APPLICABLE.—All provisions 

9 of law, including penalties, applicable with respect to 

10 the taxes imposed by section 4081 of such Code 

11 shall, insofar as applicable and not inconsistent with 

12 the provisions of this subsection, apply with respect 

13 to the floor stock taxes imposed by paragraph (1) to 

14 the same extent as if such taxes were imposed by 

15 such section. 

16 SEC. 7. INCREASE IN MILEAGE REIMBURSEMENT RATES. 

17 (a) BUSINESS.—For purposes of the Internal Rev18 enue Code of 1986, after the date of the enactment of 

19 this Act, the optional standard mileage rates to be used 

20 for computing the deductible costs of operating an auto21 mobile for business purposes shall be not less than 70 

22 cents per mile. 

23 (b) MEDICAL, MOVING, AND CHARITABLE CON24 TRIBUTION RATES.—For any day during the period under 

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1 which highway motor fuel taxes are suspended under sec2 tion 4081(f) of the Internal Revenue Code of 1986— 

3 (1) the optional standard mileage rates to be 

4 used for computing the deductible costs of operating 

5 an automobile for medical, moving, and charitable 

6 purposes shall be the same rate which is in effect for 

7 such day for business purposes, and 

8 (2) the rate under section 170(i) shall not 

9 apply. 

10 SEC. 8. TERMINATION OF APPLICATION OF TITLE IV OF 

11 THE TRADE ACT OF 1974 TO THE RUSSIAN 

12 FEDERATION AND KAZAKHSTAN. 

13 (a) PRESIDENTIAL DETERMINATIONS AND EXTEN14 SIONS OF NONDISCRIMINATORY TREATMENT.—Notwith15 standing any provision of title IV of the Trade Act of 1974 

16 (19 U.S.C. 2431 et seq.), the President may— 

17 (1) determine that such title should no longer 

18 apply to both the Russian Federation and 

19 Kazakhstan; and 

20 (2) after making a determination under para21 graph (1) with respect to the Russian Federation 

22 and Kazakhstan, proclaim the extension of non23 discriminatory treatment (normal trade relations 

24 treatment) to the products of those countries. 

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1 (b) TERMINATION OF APPLICATION OF TITLE IV.— 

2 On and after the effective date of the extension under sub3 section (a)(2) of nondiscriminatory treatment to the prod4 ucts of the Russian Federation and Kazakhstan, title IV 

5 of the Trade Act of 1974 shall cease to apply to those 

6 countries. 

7 SEC. 9. STUDY ON EFFECTS OF OIL PRICES ON MONETARY 

8 POLICY. 

9 Not later than 6 months after the date of the enact10 ment of this Act, the Secretary of the Treasury and the 

11 Board of Governors of the Federal Reserve System shall 

12 produce a study on the relationship between the increase 

13 in the price of oil and the monetary system of fiat cur14 rency. The results of this study shall be submitted to the 

15 Chairman of the Committee on Financial Services of the 

16 House of Representatives and the Chairman of the Com17 mittee on Banking, Housing, and Urban Affairs of the 

18 Senate. 

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