II 

116TH CONGRESS 

2D SESSION S. 4887 

To eliminate certain subsidies for fossil-fuel production. 

IN THE SENATE OF THE UNITED STATES 

NOVEMBER 10, 2020 

Mr. SANDERS introduced the following bill; which was read twice and referred 

to the Committee on Finance 

A BILL 

To eliminate certain subsidies for fossil-fuel production. 

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. 

4 This Act may be cited as the ‘‘End Polluter Welfare 

5 Act of 2020’’. 

6 SEC. 2. TABLE OF CONTENTS. 

7 The table of contents for this Act is as follows: 

Sec. 1. Short title. 

Sec. 2. Table of contents. 

TITLE I—ELIMINATION OF SUBSIDIES FOR FOSSIL-FUEL 

PRODUCTION 

Sec. 101. Definition of fossil fuel. 

Sec. 102. Royalty Relief. 

Sec. 103. Royalties under Mineral Leasing Act. 

Sec. 104. Elimination of interest payments for royalty overpayments. 


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Sec. 105. Removal of limits on liability for offshore facilities and pipeline operators. 

Sec. 106. Restrictions on use of appropriated funds by international financial 

institutions for projects that support fossil fuel. 

Sec. 107. Fossil Energy Research and Development Program. 

Sec. 108. Advanced Research Projects Agency—Energy. 

Sec. 109. Incentives for innovative technologies. 

Sec. 110. Rural Utility Service loan guarantees. 

Sec. 111. Prohibition on use of funds by the United States International Development Finance Corporation or the Export-Import Bank of the 

United States for financing projects, transactions, or other activities that support fossil fuel. 

Sec. 112. Transportation funds for grants, loans, loan guarantees, and other direct assistance. 

Sec. 113. Elimination of exclusion of certain lenders as owners or operators 

under CERCLA. 

Sec. 114. Termination of various tax expenditures relating to fossil fuels. 

Sec. 115. Termination of certain deductions and credits related to fossil fuels. 

Sec. 116. Uniform seven-year amortization for geological and geophysical expenditures. 

Sec. 117. Natural gas gathering lines treated as 15-year property. 

Sec. 118. Termination of last-in, first-out method of inventory for oil, natural 

gas, and coal companies. 

Sec. 119. Repeal of percentage depletion for coal and hard mineral fossil fuels. 

Sec. 120. Termination of capital gains treatment for royalties from coal. 

Sec. 121. Modifications of foreign tax credit rules applicable to oil and gas industry taxpayers receiving specific economic benefits. 

Sec. 122. Increase in oil spill liability trust fund financing rate. 

Sec. 123. Application of certain environmental taxes to synthetic crude oil. 

Sec. 124. Denial of deduction for removal costs and damages for certain oil 

spills. 

Sec. 125. Tax on crude oil and natural gas produced from the outer Continental Shelf in the Gulf of Mexico. 

Sec. 126. Repeal of corporate income tax exemption for publicly traded partnerships with qualifying income and gains from activities relating 

to fossil fuels. 

Sec. 127. Amortization of qualified tertiary injectant expenses. 

Sec. 128. Amortization of development expenditures. 

Sec. 129. Amortization of certain mining exploration expenditures. 

Sec. 130. Amortization of intangible drilling and development costs in the case 

of oil and gas wells and geothermal wells. 

Sec. 131. Permanent excise tax rate for funding of Black Lung Disability Trust 

Fund. 

Sec. 132. Termination of renewable electricity production credit eligibility for 

refined coal. 

Sec. 133. Treatment of foreign oil related income as subpart F income. 

Sec. 134. Repeal of exclusion of foreign oil and gas extraction income from the 

determination of tested income. 

Sec. 135. Termination of credit for carbon oxide sequestration. 

Sec. 136. Powder River Basin. 

Sec. 137. Study and elimination of additional fossil fuel subsidies. 

TITLE II—ADDITIONAL LIMITATIONS ON CERTAIN FOSSIL-FUEL 

PRODUCTION SUBSIDIES 


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Sec. 201. Limitation on certain forms of assistance under the CARES Act. 

Sec. 202. Limitations on banks operating fossil fuel companies. 

Sec. 203. Moratorium on oil and natural gas lease sales, noncompetitive leases 

for oil or natural gas, the issuance of coal leases, and modifications to certain regulations. 

Sec. 204. Strategic Petroleum Reserve. 

Sec. 205. Limitation on availability of funds under the Defense Production Act 

of 1950. 

Sec. 206. Repeal of royalty relief provisions. 

Sec. 207. Extension of public comment periods and suspension of rulemaking. 

1 TITLE I—ELIMINATION OF SUB2 SIDIES FOR FOSSIL-FUEL 

3 PRODUCTION 

4 SEC. 101. DEFINITION OF FOSSIL FUEL. 

5 In this Act, the term ‘‘fossil fuel’’ means coal, petro6 leum, natural gas, or any derivative of coal, petroleum, 

7 or natural gas that is used for fuel. 

8 SEC. 102. ROYALTY RELIEF. 

9 (a) IN GENERAL.— 

10 (1) OUTER CONTINENTAL SHELF LANDS ACT.— 

11 Section 8(a)(3) of the Outer Continental Shelf 

12 Lands Act (43 U.S.C. 1337(a)(3)) is amended— 

13 (A) by striking subparagraph (B); and 

14 (B) by redesignating subparagraph (C) as 

15 subparagraph (B). 

16 (2) ENERGY POLICY ACT OF 2005.— 

17 (A) INCENTIVES FOR NATURAL GAS PRO18 DUCTION FROM DEEP WELLS IN THE SHALLOW

19 WATERS OF THE GULF OF MEXICO.—Section 


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1 344 of the Energy Policy Act of 2005 (42 

2 U.S.C. 15904) is repealed. 

3 (B) DEEP WATER PRODUCTION.—Section 

4 345 of the Energy Policy Act of 2005 (42 

5 U.S.C. 15905) is repealed. 

6 (b) FUTURE PROVISIONS.—Notwithstanding any 

7 other provision of law, royalty relief shall not be permitted 

8 under a lease issued under section 8 of the Outer Conti9 nental Shelf Lands Act (43 U.S.C. 1337). 

10 SEC. 103. ROYALTIES UNDER MINERAL LEASING ACT. 

11 (a) COAL LEASES.—Section 7(a) of the Mineral 

12 Leasing Act (30 U.S.C. 207(a)) is amended in the fourth 

sentence by striking ‘‘121 13 ⁄2 per centum’’ and inserting 

‘‘183 14 ⁄4 percent’’. 

15 (b) LEASES ON LAND ON WHICH OIL OR NATURAL

16 GAS IS DISCOVERED.—Section 14 of the Mineral Leasing 

17 Act (30 U.S.C. 223) is amended in the fourth sentence 

by striking ‘‘121⁄2 per centum’’ and inserting ‘‘183 18 ⁄4 per19 cent’’. 

20 (c) LEASES ON LAND KNOWN OR BELIEVED TO

21 CONTAIN OIL OR NATURAL GAS.—Section 17 of the Min22 eral Leasing Act (30 U.S.C. 226) is amended— 

23 (1) in subsection (b)— 


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1 (A) in paragraph (1)(A), in the fifth sen2 tence, by striking ‘‘12.5 percent’’ and inserting 

‘‘183 3 ⁄4 percent’’; and 

4 (B) in paragraph (2)(A)(ii), by striking 

‘‘121⁄2 per centum’’ and inserting ‘‘183 5 ⁄4 per6 cent’’; 

7 (2) in subsection (c)(1), in the second sentence, 

by striking ‘‘12.5 percent’’ and inserting ‘‘183 8 ⁄4 per9 cent’’; 

(3) in subsection (l), by striking ‘‘121 10 ⁄2 per centum’’ each place it appears and inserting ‘‘183 11 ⁄4 per12 cent’’; and 

(4) in subsection (n)(1)(C), by striking ‘‘121 13 ⁄2

per centum’’ and inserting ‘‘183 14 ⁄4 percent’’. 

15 SEC. 104. ELIMINATION OF INTEREST PAYMENTS FOR ROY16 ALTY OVERPAYMENTS. 

17 Section 111 of the Federal Oil and Gas Royalty Man18 agement Act of 1982 (30 U.S.C. 1721) is amended by 

19 adding at the end the following: 

20 ‘‘(k) PAYMENT OF INTEREST.—Interest shall not be 

21 paid on any overpayment.’’. 


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1 SEC. 105. REMOVAL OF LIMITS ON LIABILITY FOR OFF2 SHORE FACILITIES AND PIPELINE OPERA3 TORS. 

4 Section 1004(a) of the Oil Pollution Act of 1990 (33 

5 U.S.C. 2704(a)) is amended— 

6 (1) in paragraph (3), by striking ‘‘plus 

7 $75,000,000; and’’ and inserting ‘‘and the liability 

8 of the responsible party under section 1002;’’; 

9 (2) in paragraph (4)— 

10 (A) by inserting ‘‘(except an onshore pipe11 line transporting diluted bitumen, bituminous 

12 mixtures, or any oil manufactured from bitu13 men)’’ after ‘‘for any onshore facility’’; and 

14 (B) by striking the period at the end and 

15 inserting ‘‘; and’’; and 

16 (3) by adding at the end the following: 

17 ‘‘(5) for any onshore facility transporting di18 luted bitumen, bituminous mixtures, or any oil man19 ufactured from bitumen, the liability of the respon20 sible party under section 1002.’’. 

21 SEC. 106. RESTRICTIONS ON USE OF APPROPRIATED 

22 FUNDS BY INTERNATIONAL FINANCIAL INSTI23 TUTIONS FOR PROJECTS THAT SUPPORT 

24 FOSSIL FUEL. 

25 (a) RESCISSION OF UNOBLIGATED FUNDS.— 


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1 (1) IN GENERAL.—Of the unobligated balance 

2 of amounts appropriated or otherwise made available 

3 for a contribution of the United States to an inter4 national financial institution, an amount specified in 

5 paragraph (2) shall be rescinded if the institution 

6 provides support for a project that supports the pro7 duction or use of fossil fuels. 

8 (2) AMOUNT SPECIFIED.—The amount specified 

9 in this paragraph is an amount the Secretary of the 

10 Treasury determines to be equivalent to the amount 

11 of support provided by an international financial in12 stitution described in paragraph (1) for a project 

13 that supports the production or use of fossil fuels. 

14 (b) PROHIBITION ON USE OF FUTURE FUNDS.—No 

15 amounts appropriated or otherwise made available for a 

16 contribution of the United States to an international fi17 nancial institution may be provided to the institution un18 less the institution agrees to not use the amount to provide 

19 support for any project that supports the production or 

20 use of fossil fuels. 

21 (c) INTERNATIONAL FINANCIAL INSTITUTION DE22 FINED.—In this section, the term ‘‘international financial 

23 institution’’ has the meaning given that term in section 

24 1701(c) of the International Financial Institutions Act 

25 (22 U.S.C. 262r(c)). 


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1 SEC. 107. FOSSIL ENERGY RESEARCH AND DEVELOPMENT 

2 PROGRAM. 

3 (a) TERMINATION OF AUTHORITY.—Notwithstanding 

4 any other provision of law, the authority of the Secretary 

5 of Energy to carry out the Fossil Energy Research and 

6 Development Program of the Department of Energy is 

7 terminated. 

8 (b) RESCISSION.—Notwithstanding any other provi9 sion of law— 

10 (1) all amounts made available for the Fossil 

11 Energy Research and Development Program that re12 main unobligated as of the date of enactment of this 

13 Act are rescinded; and 

14 (2) no amounts made available after the date of 

15 enactment of this Act for the Fossil Energy Re16 search and Development Program shall be expended, 

17 other than such amounts as are necessary to cover 

18 costs incurred in terminating ongoing research of 

19 the Fossil Energy Research and Development Pro20 gram, as determined by the Secretary of Energy, in 

21 consultation with other appropriate Federal agen22 cies. 


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1 SEC. 108. ADVANCED RESEARCH PROJECTS AGENCY—EN2 ERGY. 

3 None of the funds made available to the Advanced 

4 Research Projects Agency—Energy shall be used to carry 

5 out any project that supports fossil fuel. 

6 SEC. 109. INCENTIVES FOR INNOVATIVE TECHNOLOGIES. 

7 (a) IN GENERAL.—Section 1703 of the Energy Policy 

8 Act of 2005 (42 U.S.C. 16513) is amended— 

9 (1) in subsection (b)— 

10 (A) by striking paragraph (2); 

11 (B) by redesignating paragraphs (3) 

12 through (9) as paragraphs (2) through (8), re13 spectively; and 

14 (C) by striking paragraph (10); 

15 (2) by striking subsection (c); and 

16 (3) by redesignating subsections (d) and (e) as 

17 subsections (c) and (d), respectively. 

18 (b) CONFORMING AMENDMENT.—Section 1704 of the 

19 Energy Policy Act of 2005 (42 U.S.C. 16514) is amend20 ed— 

21 (1) by striking the section designation and 

22 heading and all that follows through ‘‘There are’’ in 

23 subsection (a) and inserting the following: 

24 ‘‘SEC. 1704. AUTHORIZATION OF APPROPRIATIONS. 

25 ‘‘There are’’; and 

26 (2) by striking subsection (b). 


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1 SEC. 110. RURAL UTILITY SERVICE LOAN GUARANTEES. 

2 Notwithstanding any other provision of law, the Sec3 retary of Agriculture may not make a loan under title III 

4 of the Rural Electrification Act of 1936 (7 U.S.C. 931 

5 et seq.) to an applicant for the purpose of carrying out 

6 any project that will use fossil fuel. 

7 SEC. 111. PROHIBITION ON USE OF FUNDS BY THE UNITED 

8 STATES INTERNATIONAL DEVELOPMENT FI9 NANCE CORPORATION OR THE EXPORT-IM10 PORT BANK OF THE UNITED STATES FOR FI11 NANCING PROJECTS, TRANSACTIONS, OR 

12 OTHER ACTIVITIES THAT SUPPORT FOSSIL 

13 FUEL. 

14 Notwithstanding any other provision of law, no 

15 amounts appropriated or otherwise made available for the 

16 United States International Development Finance Cor17 poration or the Export-Import Bank of the United States 

18 that are available for obligation on or after the date of 

19 the enactment of this Act may be obligated or expended 

20 to support any project, transaction, or other activity that 

21 supports the production or use of fossil fuels. 

22 SEC. 112. TRANSPORTATION FUNDS FOR GRANTS, LOANS, 

23 LOAN GUARANTEES, AND OTHER DIRECT AS24 SISTANCE. 

25 Notwithstanding any other provision of law, any 

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1 tation (including the Federal Railroad Administration) 

2 may not be used to award any grant, loan, loan guarantee, 

3 or provide any other direct assistance to any rail facility 

4 or port project that transports fossil fuel. 

5 SEC. 113. ELIMINATION OF EXCLUSION OF CERTAIN LEND6 ERS AS OWNERS OR OPERATORS UNDER 

7 CERCLA. 

8 Section 101(20)(F) of the Comprehensive Environ9 mental Response, Compensation, and Liability Act of 

10 1980 (42 U.S.C. 9601(20)(F)) is amended by adding at 

11 the end the following: 

12 ‘‘(iii) INELIGIBLE LENDERS.—The ex13 clusions under clauses (i) and (ii) shall not 

14 apply to a person that is a lender that is— 

15 ‘‘(I) an investment company reg16 istered under the Investment Com17 pany Act of 1940 (15 U.S.C. 80a–1 et 

18 seq.), investment adviser (as defined 

19 in section 202(a) of the Investment 

20 Advisers Act of 1940 (15 U.S.C. 80b– 

21 2(a))), or broker or dealer (as those 

22 terms are defined in section 3(a) of 

23 the Securities Exchange Act of 1934 

24 (15 U.S.C. 78c(a))) with 


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1 $250,000,000,000 or more in assets 

2 under management; or 

3 ‘‘(II) a bank holding company (as 

4 defined in section 2 of the Bank Hold5 ing Company Act of 1956 (12 U.S.C. 

6 1841)) with $10,000,000,000 or more 

7 in total consolidated assets.’’. 

8 SEC. 114. TERMINATION OF VARIOUS TAX EXPENDITURES 

9 RELATING TO FOSSIL FUELS. 

10 (a) IN GENERAL.—Subchapter C of chapter 80 of the 

11 Internal Revenue Code of 1986 is amended by adding at 

12 the end the following new section: 

13 ‘‘SEC. 7875. TERMINATION OF CERTAIN PROVISIONS RELAT14 ING TO FOSSIL-FUEL INCENTIVES. 

15 ‘‘(a) IN GENERAL.—The following provisions shall 

16 not apply to taxable years beginning after the date of the 

17 enactment of the End Polluter Welfare Act of 2020: 

18 ‘‘(1) Section 43 (relating to enhanced oil recov19 ery credit). 

20 ‘‘(2) Section 45I (relating to credit for pro21 ducing oil and natural gas from marginal wells). 

22 ‘‘(3) Section 461(i)(2) (relating to special rule 

23 for spudding of oil or natural gas wells). 

24 ‘‘(4) Section 469(c)(3)(A) (relating to working 

25 interests in oil and natural gas property). 


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1 ‘‘(5) Section 613A (relating to limitations on 

2 percentage depletion in case of oil and natural gas 

3 wells). 

4 ‘‘(b) PROVISIONS RELATING TO PROPERTY.—The 

5 following provisions shall not apply to property placed in 

6 service after the date of the enactment of the End Polluter 

7 Welfare Act of 2020: 

8 ‘‘(1) Section 168(e)(3)(C)(iii) (relating to clas9 sification of certain property). 

10 ‘‘(2) Section 169 (relating to amortization of 

11 pollution control facilities) with respect to any at12 mospheric pollution control facility. 

13 ‘‘(c) PROVISIONS RELATING TO COSTS AND EX14 PENSES.—The following provisions shall not apply to costs 

15 or expenses paid or incurred after the date of the enact16 ment of the End Polluter Welfare Act of 2020: 

17 ‘‘(1) Section 179B (relating to deduction for 

18 capital costs incurred in complying with Environ19 mental Protection Agency sulfur regulations). 

20 ‘‘(2) Section 468 (relating to special rules for 

21 mining and solid waste reclamation and closing 

22 costs). 

23 ‘‘(d) ALLOCATED CREDITS.—No new credits shall be 

24 certified under section 48A (relating to qualifying ad25 vanced coal project credit) or section 48B (relating to 


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1 qualifying gasification project credit) after the date of the 

2 enactment of the End Polluter Welfare Act of 2020. 

3 ‘‘(e) ARBITRAGE BONDS.—Section 148(b)(4) (relat4 ing to safe harbor for prepaid natural gas) shall not apply 

5 to obligations issued after the date of the enactment of 

6 the End Polluter Welfare Act of 2020.’’. 

7 (b) CONFORMING AMENDMENTS.— 

8 (1) Section 613(d) of the Internal Revenue 

9 Code of 1986 is amended by striking ‘‘Except as 

10 provided in section 613A, in the case’’ and inserting 

11 ‘‘In the case’’. 

12 (2) The table of sections for subchapter C of 

13 chapter 90 of such Code is amended by adding at 

14 the end the following new item: 

‘‘Sec. 7875. Termination of certain provisions relating to fossil-fuel incentives.’’. 

15 SEC. 115. TERMINATION OF CERTAIN DEDUCTIONS AND 

16 CREDITS RELATED TO FOSSIL FUELS. 

17 (a) SPECIAL ALLOWANCE FOR CERTAIN PROP18 ERTY.—Section 168(k) of the Internal Revenue Code of 

19 1986 is amended by adding at the end the following: 

20 ‘‘(11) FOSSIL FUEL PROPERTY.— 

21 ‘‘(A) IN GENERAL.—This subsection shall 

22 not apply with respect to any property which is 

23 primarily used for fossil fuel activities and is 

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1 ning after the date of the enactment of the End 

2 Polluter Welfare Act of 2020. 

3 ‘‘(B) FOSSIL FUEL ACTIVITIES.—For pur4 poses of this paragraph, the term ‘fossil fuel ac5 tivities’ means the exploration, development, 

6 mining or production, processing, refining, 

7 transportation (including pipelines transporting 

8 gas, oil, or products thereof), distribution, or 

9 marketing of coal, petroleum, natural gas, or 

10 any derivative of coal, petroleum, or natural gas 

11 that is used for fuel. 

12 ‘‘(C) EXCEPTION.—The property described 

13 in subparagraph (A) shall not include any 

14 motor vehicle service station or convenience 

15 store which does not qualify as a retail motor 

16 fuels outlet under subsection (e)(3)(E)(iii).’’. 

17 (b) QUALIFIED BUSINESS INCOME.—Section 

18 199A(c)(3)(B) of the Internal Revenue Code of 1986 is 

19 amended by adding at the end the following: 

20 ‘‘(viii) Any item of gain or loss de21 rived from fossil fuel activities (as defined 

22 in section 168(k)(11)(B)) during any tax23 able year beginning after the date of the 

24 enactment of the End Polluter Welfare Act 

25 of 2020.’’. 


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1 (c) CREDIT FOR INCREASING RESEARCH ACTIVI2 TIES.—Section 41(d)(4) of the Internal Revenue Code of 

3 1986 is amended by adding at the end the following: 

4 ‘‘(I) FOSSIL FUEL ACTIVITIES.—Any re5 search related to fossil fuel activities (as defined 

6 in section 168(k)(11)(B)) which is conducted 

7 after the date of the enactment of the End Pol8 luter Welfare Act of 2020.’’. 

9 (d) FOREIGN-DERIVED INTANGIBLE INCOME.—Sub10 clause (V) of section 250(b)(3)(A)(i) of the Internal Rev11 enue Code of 1986 is amended to read as follows: 

12 ‘‘(V) any income derived from 

13 fossil fuel activities (as defined in sec14 tion 168(k)(11)(B)) during any tax15 able year beginning after the date of 

16 the enactment of the End Polluter 

17 Welfare Act of 2020, and’’. 

18 (e) EXCHANGE OF REAL PROPERTY HELD FOR PRO19 DUCTIVE USE OR INVESTMENT.—Section 1031(a)(2) of 

20 the Internal Revenue Code of 1986 is amended to read 

21 as follows: 

22 ‘‘(2) EXCEPTIONS.—This subsection shall not 

23 apply to— 

24 ‘‘(A) any exchange of real property held 

25 primarily for sale, or 


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1 ‘‘(B) any exchange of real property 

2 which— 

3 ‘‘(i) is used for fossil fuel activities (as 

4 defined in section 168(k)(11)(B)), and 

5 ‘‘(ii) occurs after the date of the en6 actment of the End Polluter Welfare Act 

7 of 2020.’’. 

8 SEC. 116. UNIFORM SEVEN-YEAR AMORTIZATION FOR GEO9 LOGICAL AND GEOPHYSICAL EXPENDITURES. 

10 (a) IN GENERAL.—Section 167(h) of the Internal 

11 Revenue Code of 1986 is amended— 

12 (1) by striking ‘‘24-month period’’ each place it 

13 appears in paragraphs (1) and (4) and inserting 

14 ‘‘84-month period’’; 

15 (2) by striking paragraph (2) and inserting the 

16 following: 

17 ‘‘(2) MID-MONTH CONVENTION.—For purposes 

18 of paragraph (1), any payment paid or incurred dur19 ing any month shall be treated as paid or incurred 

20 on the mid-point of such month.’’; and 

21 (3) by striking paragraph (5). 

22 (b) EFFECTIVE DATE.—The amendments made by 

23 this section shall apply to amounts paid or incurred after 

24 the date of the enactment of this Act. 


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1 SEC. 117. NATURAL GAS GATHERING LINES TREATED AS 15- 

2 YEAR PROPERTY. 

3 (a) IN GENERAL.—Section 168(e)(3)(E) of the Inter4 nal Revenue Code of 1986 is amended by striking ‘‘and’’ 

5 at the end of clause (v), by striking the period at the end 

6 of clause (vi) and inserting ‘‘, and’’, and by adding at the 

7 end the following new clause: 

8 ‘‘(vii) any natural gas gathering line 

9 the original use of which commences with 

10 the taxpayer after the date of the enact11 ment of this clause.’’. 

12 (b) ALTERNATIVE SYSTEM.—The table contained in 

13 section 168(g)(3)(B) of the Internal Revenue Code of 

14 1986 is amended by inserting after the item relating to 

15 subparagraph (E)(vi) the following new item: 

‘‘(E)(vii) .................................................................................................. 22’’. 

16 (c) CONFORMING AMENDMENT.—Clause (iv) of sec17 tion 168(e)(3)(C) of the Internal Revenue Code of 1986 

18 is amended by inserting ‘‘and on or before the date of the 

19 enactment of the End Polluter Welfare Act of 2020’’ after 

20 ‘‘April 11, 2005’’. 

21 (d) EFFECTIVE DATE.— 

22 (1) IN GENERAL.—The amendments made by 

23 this section shall apply to property placed in service 

24 on and after the date of the enactment of this Act. 


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1 (2) EXCEPTION.—The amendments made by 

2 this section shall not apply to any property with re3 spect to which the taxpayer or a related party has 

4 entered into a binding contract for the construction 

5 thereof on or before the date of the introduction of 

6 this Act, or, in the case of self-constructed property, 

7 has started construction on or before such date. 

8 SEC. 118. TERMINATION OF LAST-IN, FIRST-OUT METHOD 

9 OF INVENTORY FOR OIL, NATURAL GAS, AND 

10 COAL COMPANIES. 

11 (a) IN GENERAL.—Section 472 of the Internal Rev12 enue Code of 1986 is amended by adding at the end the 

13 following new subsection: 

14 ‘‘(h) TERMINATION FOR OIL, NATURAL GAS, AND

15 COAL COMPANIES.—Subsection (a) shall not apply to any 

16 taxpayer that is in the trade or business of the production, 

17 refining, processing, transportation, or distribution of oil, 

18 natural gas, or coal for any taxable year beginning after 

19 the date of enactment of the End Polluter Welfare Act 

20 of 2020.’’. 

21 (b) ADDITIONAL TERMINATION.—Section 473 of the 

22 Internal Revenue Code of 1986 is amended by adding at 

23 the end the following new subsection: 

24 ‘‘(h) TERMINATION FOR OIL, NATURAL GAS, AND

25 COAL COMPANIES.—This section shall not apply to any 


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1 taxpayer that is in the trade or business of the production, 

2 refining, processing, transportation, or distribution of oil, 

3 natural gas, or coal for any taxable year beginning after 

4 the date of enactment of the End Polluter Welfare Act 

5 of 2020.’’. 

6 (c) CHANGE IN METHOD OF ACCOUNTING.—In the 

7 case of any taxpayer required by the amendments made 

8 by this section to change its method of accounting for its 

9 first taxable year beginning after the date of enactment 

10 of this Act— 

11 (1) such change shall be treated as initiated by 

12 the taxpayer; and 

13 (2) such change shall be treated as made with 

14 the consent of the Secretary of the Treasury. 

15 (d) EFFECTIVE DATE.—The amendments made by 

16 this section shall apply to taxable years beginning after 

17 the date of enactment of this Act. 

18 SEC. 119. REPEAL OF PERCENTAGE DEPLETION FOR COAL 

19 AND HARD MINERAL FOSSIL FUELS. 

20 (a) IN GENERAL.—Section 613 of the Internal Rev21 enue Code of 1986 is amended by adding at the end the 

22 following new subsection: 

23 ‘‘(f) TERMINATION WITH RESPECT TO COAL AND

24 HARD MINERAL FOSSIL FUELS.—In the case of coal, lig25 nite, and oil shale (other than oil shale described in subVerDate Sep 11 2014 22:08 Nov 24, 2020 Jkt 019200 PO 00000 Frm 00020 Fmt 6652 Sfmt 6201 E:\BILLS\S4887.IS S4887

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1 section (b)(5)), the allowance for depletion shall be com2 puted without reference to this section for any taxable 

3 year beginning after the date of the enactment of the End 

4 Polluter Welfare Act of 2020.’’. 

5 (b) CONFORMING AMENDMENTS.— 

6 (1) COAL AND LIGNITE.—Section 613(b)(4) of 

7 the Internal Revenue Code of 1986 is amended by 

8 striking ‘‘coal, lignite,’’. 

9 (2) OIL SHALE.—Section 613(b)(2) of such 

10 Code is amended to read as follows: 

11 ‘‘(2) 15 PERCENT.—If, from deposits in the 

12 United States, gold, silver, copper, and iron ore.’’. 

13 (c) EFFECTIVE DATE.—The amendments made by 

14 this section shall apply to taxable years beginning after 

15 the date of the enactment of this Act. 

16 SEC. 120. TERMINATION OF CAPITAL GAINS TREATMENT 

17 FOR ROYALTIES FROM COAL. 

18 (a) IN GENERAL.—Subsection (c) of section 631 of 

19 the Internal Revenue Code of 1986 is amended— 

20 (1) by striking ‘‘coal (including lignite), or iron 

21 ore’’ and inserting ‘‘iron ore’’; 

22 (2) by striking ‘‘coal or iron ore’’ each place it 

23 appears and inserting ‘‘iron ore’’; 

24 (3) by striking ‘‘iron ore or coal’’ each place it 

25 appears and inserting ‘‘iron ore’’; and 


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1 (4) by striking ‘‘COAL OR’’ in the heading. 

2 (b) CONFORMING AMENDMENTS.— 

3 (1) The heading of section 631 of the Internal 

4 Revenue Code of 1986 is amended by striking ‘‘, 

5 COAL,’’. 

6 (2) Section 1231(b)(2) of such Code is amend7 ed by striking ‘‘, coal,’’. 

8 (c) EFFECTIVE DATE.—The amendments made by 

9 this section shall apply to dispositions after the date of 

10 the enactment of this Act. 

11 SEC. 121. MODIFICATIONS OF FOREIGN TAX CREDIT RULES 

12 APPLICABLE TO OIL AND GAS INDUSTRY TAX13 PAYERS RECEIVING SPECIFIC ECONOMIC 

14 BENEFITS. 

15 (a) IN GENERAL.—Section 901 of the Internal Rev16 enue Code of 1986 is amended by redesignating subsection 

17 (n) as subsection (o) and by inserting after subsection (m) 

18 the following new subsection: 

19 ‘‘(n) SPECIAL RULES RELATING TO DUAL CAPACITY

20 TAXPAYERS.— 

21 ‘‘(1) GENERAL RULE.—Notwithstanding any 

22 other provision of this chapter, any amount paid or 

23 accrued to a foreign country or possession of the 

24 United States for any period by a dual capacity tax25 payer which is in the trade or business of the proVerDate Sep 11 2014 22:08 Nov 24, 2020 Jkt 019200 PO 00000 Frm 00022 Fmt 6652 Sfmt 6201 E:\BILLS\S4887.IS S4887

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1 duction, refining, processing, transportation, or dis2 tribution of fossil fuel shall not be considered a 

3 tax— 

4 ‘‘(A) if, for such period, the foreign coun5 try or possession does not impose a generally 

6 applicable income tax, or 

7 ‘‘(B) to the extent such amount exceeds 

8 the amount (determined in accordance with reg9 ulations) which— 

10 ‘‘(i) is paid by such dual capacity tax11 payer pursuant to the generally applicable 

12 income tax imposed by the country or pos13 session, or 

14 ‘‘(ii) would be paid if no amount other 

15 than the amount required to be paid by 

16 such taxpayer under the generally applica17 ble income tax imposed by the country or 

18 possession were paid or accrued by such 

19 dual capacity taxpayer. 

20 Nothing in this paragraph shall be construed to 

21 imply the proper treatment of any such amount 

22 not in excess of the amount determined under 

23 subparagraph (B). 

24 ‘‘(2) DUAL CAPACITY TAXPAYER.—For pur25 poses of this subsection, the term ‘dual capacity taxVerDate Sep 11 2014 22:08 Nov 24, 2020 Jkt 019200 PO 00000 Frm 00023 Fmt 6652 Sfmt 6201 E:\BILLS\S4887.IS S4887

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1 payer’ means, with respect to any foreign country or 

2 possession of the United States, a person who— 

3 ‘‘(A) is subject to a levy of such country or 

4 possession, and 

5 ‘‘(B) receives (or will receive) directly or 

6 indirectly a specific economic benefit (as deter7 mined in accordance with regulations) from 

8 such country or possession. 

9 ‘‘(3) GENERALLY APPLICABLE INCOME TAX.— 

10 For purposes of this subsection— 

11 ‘‘(A) IN GENERAL.—The term ‘generally 

12 applicable income tax’ means an income tax (or 

13 a series of income taxes) which is generally im14 posed under the laws of a foreign country or 

15 possession on income derived from the conduct 

16 of a trade or business within such country or 

17 possession. 

18 ‘‘(B) EXCEPTIONS.—Such term shall not 

19 include a tax unless it has substantial applica20 tion, by its terms and in practice, to— 

21 ‘‘(i) persons who are not dual capacity 

22 taxpayers, and 

23 ‘‘(ii) persons who are— 

24 ‘‘(I) citizens or residents of the 

25 foreign country or possession, or 


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•S 4887 IS

1 ‘‘(II) organized or incorporated 

2 under the laws of the foreign country 

3 or possession. 

4 ‘‘(4) FOSSIL FUEL.—For purposes of this sub5 section, the term ‘fossil fuel’ means coal, petroleum, 

6 natural gas, or any derivative of coal, petroleum, or 

7 natural gas that is used for fuel.’’. 

8 (b) EFFECTIVE DATE.—The amendments made by 

9 this section shall apply to taxes paid or accrued in taxable 

10 years beginning after the date of the enactment of this 

11 Act. 

12 (c) SPECIAL RULE FOR TREATIES.—Notwith13 standing sections 894 or 7852(d) of the Internal Revenue 

14 Code of 1986, the amendments made by this section shall 

15 apply without regard to any treaty obligation of the 

16 United States. 

17 SEC. 122. INCREASE IN OIL SPILL LIABILITY TRUST FUND 

18 FINANCING RATE. 

19 (a) IN GENERAL.—Section 4611 of the Internal Rev20 enue Code of 1986 is amended— 

21 (1) in subsection (c)(2)(B)— 

22 (A) in clause (i), by striking ‘‘and’’ at the 

23 end; 

24 (B) in clause (ii), by striking the period at 

25 the end and inserting ‘‘, and’’; and 


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1 (C) by adding at the end the following: 

2 ‘‘(iii) in the case of crude oil received 

3 or petroleum products entered after De4 cember 31, 2020, 10 cents a barrel.’’; and 

5 (2) by striking subsection (f) and inserting the 

6 following: 

7 ‘‘(f) APPLICATION OF OIL SPILL LIABILITY TRUST

8 FUND FINANCING RATE.—The Oil Spill Liability Trust 

9 Fund financing rate under subsection (c) shall apply on 

10 and after April 1, 2006, or if later, the date which is 30 

11 days after the last day of any calendar quarter for which 

12 the Secretary estimates that, as of the close of that quar13 ter, the unobligated balance in the Oil Spill Liability Trust 

14 Fund is less than $2,000,000,000.’’. 

15 (b) EFFECTIVE DATE.—The amendments made by 

16 this section shall apply to crude oil received and petroleum 

17 products entered after the date of the enactment of this 

18 Act. 

19 SEC. 123. APPLICATION OF CERTAIN ENVIRONMENTAL 

20 TAXES TO SYNTHETIC CRUDE OIL. 

21 (a) IN GENERAL.—Paragraph (1) of section 4612(a) 

22 of the Internal Revenue Code of 1986 is amended to read 

23 as follows: 

24 ‘‘(1) CRUDE OIL.— 


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1 ‘‘(A) IN GENERAL.—The term ‘crude oil’ 

2 includes crude oil condensates, natural gasoline, 

3 and synthetic crude oil. 

4 ‘‘(B) SYNTHETIC CRUDE OIL.—For pur5 poses of subparagraph (A), the term ‘synthetic 

6 crude oil’ means— 

7 ‘‘(i) any bitumen and bituminous mix8 tures, 

9 ‘‘(ii) any oil derived from bitumen and 

10 bituminous mixtures (including oil derived 

11 from tar sands), 

12 ‘‘(iii) any liquid fuel derived from 

13 coal, and 

14 ‘‘(iv) any oil derived from kerogen15 bearing sources (including oil derived from 

16 oil shale).’’. 

17 (b) REGULATORY AUTHORITY TO ADDRESS OTHER

18 TYPES OF CRUDE OIL AND PETROLEUM PRODUCTS.— 

19 Subsection (a) of section 4612 of the Internal Revenue 

20 Code of 1986 is amended by adding at the end the fol21 lowing: 

22 ‘‘(10) REGULATORY AUTHORITY TO ADDRESS

23 OTHER TYPES OF CRUDE OIL AND PETROLEUM

24 PRODUCTS.—Under such regulations as the Sec25 retary may prescribe, the Secretary may include as 


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1 crude oil or as a petroleum product subject to tax 

2 under section 4611, any fuel feedstock or finished 

3 fuel product customarily transported by pipeline, 

4 vessel, railcar, or tanker truck if the Secretary deter5 mines that— 

6 ‘‘(A) the classification of such fuel feed7 stock or finished fuel product is consistent with 

8 the definition of oil under the Oil Pollution Act 

9 of 1990, and 

10 ‘‘(B) such fuel feedstock or finished fuel 

11 product is produced in sufficient commercial 

12 quantities as to pose a significant risk of haz13 ard in the event of a discharge.’’. 

14 (c) TECHNICAL AMENDMENT.—Paragraph (2) of sec15 tion 4612(a) of the Internal Revenue Code of 1986 is 

16 amended by striking ‘‘from a well located’’. 

17 (d) EFFECTIVE DATE.—The amendments made by 

18 this section shall apply to oil and petroleum products re19 ceived or entered during calendar quarters beginning more 

20 than 60 days after the date of the enactment of this Act. 

21 SEC. 124. DENIAL OF DEDUCTION FOR REMOVAL COSTS 

22 AND DAMAGES FOR CERTAIN OIL SPILLS. 

23 (a) IN GENERAL.—Section 162(f) of the Internal 

24 Revenue Code of 1986 is amended— 


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1 (1) by redesignating paragraph (5) as para2 graph (6); and 

3 (2) by inserting after paragraph (4) the fol4 lowing: 

5 ‘‘(5) EXPENSES FOR REMOVAL COSTS AND

6 DAMAGES RELATING TO CERTAIN OIL SPILL LIABIL7 ITY.—Notwithstanding paragraphs (2) and (3), no 

8 deduction shall be allowed under this chapter for any 

9 costs or damages for which the taxpayer is liable 

10 under section 1002 of the Oil Pollution Act of 1990 

11 (33 U.S.C. 2702)’’. 

12 (b) EFFECTIVE DATE.—The amendments made by 

13 this section shall apply with respect to any liability arising 

14 in taxable years ending after the date of the enactment 

15 of this Act. 

16 SEC. 125. TAX ON CRUDE OIL AND NATURAL GAS PRO17 DUCED FROM THE OUTER CONTINENTAL 

18 SHELF IN THE GULF OF MEXICO. 

19 (a) IN GENERAL.—Subtitle E of the Internal Rev20 enue Code of 1986 is amended by adding at the end the 

21 following new chapter: 


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1 ‘‘CHAPTER 56—TAX ON SEVERANCE OF 

2 CRUDE OIL AND NATURAL GAS FROM 

3 THE OUTER CONTINENTAL SHELF IN 

4 THE GULF OF MEXICO 

‘‘Sec. 5901. Imposition of tax. 

‘‘Sec. 5902. Taxable crude oil or natural gas and removal price. 

‘‘Sec. 5903. Special rules and definitions. 

5 ‘‘SEC. 5901. IMPOSITION OF TAX. 

6 ‘‘(a) IN GENERAL.—In addition to any other tax im7 posed under this title, there is hereby imposed a tax equal 

8 to 13 percent of the removal price of any taxable crude 

9 oil or natural gas removed from the premises during any 

10 taxable period. 

11 ‘‘(b) CREDIT FOR FEDERAL ROYALTIES PAID.— 

12 ‘‘(1) IN GENERAL.—There shall be allowed as a 

13 credit against the tax imposed by subsection (a) with 

14 respect to the production of any taxable crude oil or 

15 natural gas an amount equal to the aggregate 

16 amount of royalties paid under Federal law with re17 spect to such production. 

18 ‘‘(2) LIMITATION.—The aggregate amount of 

19 credits allowed under paragraph (1) to any taxpayer 

20 for any taxable period shall not exceed the amount 

21 of tax imposed by subsection (a) for such taxable pe22 riod. 


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1 ‘‘(c) TAX PAID BY PRODUCER.—The tax imposed by 

2 this section shall be paid by the producer of the taxable 

3 crude oil or natural gas. 

4 ‘‘SEC. 5902. TAXABLE CRUDE OIL OR NATURAL GAS AND RE5 MOVAL PRICE. 

6 ‘‘(a) TAXABLE CRUDE OIL OR NATURAL GAS.—For 

7 purposes of this chapter, the term ‘taxable crude oil or 

8 natural gas’ means crude oil or natural gas which is pro9 duced from Federal submerged lands on the outer Conti10 nental Shelf in the Gulf of Mexico pursuant to a lease 

11 entered into with the United States which authorizes the 

12 production. 

13 ‘‘(b) REMOVAL PRICE.—For purposes of this chap14 ter— 

15 ‘‘(1) IN GENERAL.—Except as otherwise pro16 vided in this subsection, the term ‘removal price’ 

17 means— 

18 ‘‘(A) in the case of taxable crude oil, the 

19 amount for which a barrel of such crude oil is 

20 sold, and 

21 ‘‘(B) in the case of taxable natural gas, the 

22 amount per 1,000 cubic feet for which such 

23 natural gas is sold. 

24 ‘‘(2) SALES BETWEEN RELATED PERSONS.—In 

25 the case of a sale between related persons, the reVerDate Sep 11 2014 22:08 Nov 24, 2020 Jkt 019200 PO 00000 Frm 00031 Fmt 6652 Sfmt 6201 E:\BILLS\S4887.IS S4887

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1 moval price shall not be less than the constructive 

2 sales price for purposes of determining gross income 

3 from the property under section 613. 

4 ‘‘(3) OIL OR NATURAL GAS REMOVED FROM

5 PROPERTY BEFORE SALE.—If crude oil or natural 

6 gas is removed from the property before it is sold, 

7 the removal price shall be the constructive sales 

8 price for purposes of determining gross income from 

9 the property under section 613. 

10 ‘‘(4) REFINING BEGUN ON PROPERTY.—If the 

11 manufacture or conversion of crude oil into refined 

12 products begins before such oil is removed from the 

13 property— 

14 ‘‘(A) such oil shall be treated as removed 

15 on the day such manufacture or conversion be16 gins, and 

17 ‘‘(B) the removal price shall be the con18 structive sales price for purposes of determining 

19 gross income from the property under section 

20 613. 

21 ‘‘(5) PROPERTY.—The term ‘property’ has the 

22 meaning given such term by section 614. 

23 ‘‘SEC. 5903. SPECIAL RULES AND DEFINITIONS. 

24 ‘‘(a) ADMINISTRATIVE REQUIREMENTS.— 


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1 ‘‘(1) WITHHOLDING AND DEPOSIT OF TAX.— 

2 The Secretary shall provide for the withholding and 

3 deposit of the tax imposed under section 5901 on a 

4 quarterly basis. 

5 ‘‘(2) RECORDS AND INFORMATION.—Each tax6 payer liable for tax under section 5901 shall keep 

7 such records, make such returns, and furnish such 

8 information (to the Secretary and to other persons 

9 having an interest in the taxable crude oil or natural 

10 gas) with respect to such oil as the Secretary may 

11 by regulations prescribe. 

12 ‘‘(3) TAXABLE PERIODS; RETURN OF TAX.— 

13 ‘‘(A) TAXABLE PERIOD.—Except as pro14 vided by the Secretary, each calendar year shall 

15 constitute a taxable period. 

16 ‘‘(B) RETURNS.—The Secretary shall pro17 vide for the filing, and the time for filing, of the 

18 return of the tax imposed under section 5901. 

19 ‘‘(b) DEFINITIONS.—For purposes of this chapter— 

20 ‘‘(1) PRODUCER.—The term ‘producer’ means 

21 the holder of the economic interest with respect to 

22 the crude oil or natural gas. 

23 ‘‘(2) CRUDE OIL.—The term ‘crude oil’ includes 

24 crude oil condensates and natural gasoline. 


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1 ‘‘(3) PREMISES AND CRUDE OIL PRODUCT.— 

2 The terms ‘premises’ and ‘crude oil product’ have 

3 the same meanings as when used for purposes of de4 termining gross income from the property under sec5 tion 613. 

6 ‘‘(c) ADJUSTMENT OF REMOVAL PRICE.—In deter7 mining the removal price of oil or natural gas from a prop8 erty in the case of any transaction, the Secretary may ad9 just the removal price to reflect clearly the fair market 

10 value of oil or natural gas removed. 

11 ‘‘(d) REGULATIONS.—The Secretary shall prescribe 

12 such regulations as may be necessary or appropriate to 

13 carry out the purposes of this chapter.’’. 

14 (b) DEDUCTIBILITY OF TAX.—The first sentence of 

15 section 164(a) of the Internal Revenue Code of 1986 is 

16 amended by inserting after paragraph (4) the following 

17 new paragraph: 

18 ‘‘(5) The tax imposed by section 5901(a) (after 

19 application of section 5901(b)) on the severance of 

20 crude oil or natural gas from the outer Continental 

21 Shelf in the Gulf of Mexico.’’. 

22 (c) CLERICAL AMENDMENT.—The table of chapters 

23 for subtitle E is amended by adding at the end the fol24 lowing new item: 

‘‘CHAPTER 56. Tax on severance of crude oil and natural gas 

from the outer Continental Shelf in the Gulf of 

Mexico.’’. 


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1 (d) EFFECTIVE DATE.—The amendments made by 

2 this section shall apply to crude oil or natural gas removed 

3 after December 31, 2020. 

4 SEC. 126. REPEAL OF CORPORATE INCOME TAX EXEMP5 TION FOR PUBLICLY TRADED PARTNERSHIPS 

6 WITH QUALIFYING INCOME AND GAINS FROM 

7 ACTIVITIES RELATING TO FOSSIL FUELS. 

8 (a) IN GENERAL.—Section 7704(d)(1) of the Inter9 nal Revenue Code of 1986 is amended by inserting ‘‘or 

10 any coal, petroleum, natural gas, or any derivative of coal, 

11 petroleum, or natural gas that is used for fuel’’ after ‘‘sec12 tion 613(b)(7)’’. 

13 (b) EFFECTIVE DATE.—The amendment made by 

14 this section shall apply to taxable years beginning after 

15 the date of the enactment of this Act. 

16 SEC. 127. AMORTIZATION OF QUALIFIED TERTIARY 

17 INJECTANT EXPENSES. 

18 (a) IN GENERAL.—Section 193 of the Internal Rev19 enue Code of 1986 is amended— 

20 (1) by striking subsection (a) and inserting the 

21 following: 

22 ‘‘(a) AMORTIZATION OF QUALIFIED TERTIARY

23 INJECTANT EXPENSES.— 

24 ‘‘(1) IN GENERAL.—Any qualified tertiary 

25 injectant expenses paid or incurred by the taxpayer 


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•S 4887 IS

1 shall be allowed as a deduction ratably over the 84- 

2 month period beginning on the date that such ex3 pense was paid or incurred. 

4 ‘‘(2) MID-MONTH CONVENTION.—For purposes 

5 of paragraph (1), any expenses paid or incurred dur6 ing any month shall be treated as paid or incurred 

7 on the mid-point of such month.’’; and 

8 (2) by striking subsection (c) and inserting the 

9 following: 

10 ‘‘(c) EXCLUSIVE METHOD.—Except as provided in 

11 this section, no depreciation or amortization deduction 

12 shall be allowed with respect to qualified tertiary injectant 

13 expenses.’’. 

14 (b) EFFECTIVE DATE.—The amendments made by 

15 this section shall apply to expenses paid or incurred in 

16 taxable years beginning after the date of the enactment 

17 of this Act. 

18 SEC. 128. AMORTIZATION OF DEVELOPMENT EXPENDI19 TURES. 

20 (a) IN GENERAL.—Section 616 of the Internal Rev21 enue Code of 1986 is amended to read as follows: 

22 ‘‘SEC. 616. AMORTIZATION OF DEVELOPMENT EXPENDI23 TURES. 

24 ‘‘(a) IN GENERAL.—Any expenditures paid or in25 curred for the development of a mine or other natural deVerDate Sep 11 2014 22:08 Nov 24, 2020 Jkt 019200 PO 00000 Frm 00036 Fmt 6652 Sfmt 6201 E:\BILLS\S4887.IS S4887

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1 posit (other than an oil or gas well) if paid or incurred 

2 after the existence of ores or minerals in commercially 

3 marketable quantities has been disclosed shall be allowed 

4 as a deduction ratably over the 84-month period beginning 

5 on the date that such expenditure was paid or incurred. 

6 ‘‘(b) MID-MONTH CONVENTION.—For purposes of 

7 subsection (a), any expenditures paid or incurred during 

8 any month shall be treated as paid or incurred on the mid9 point of such month. 

10 ‘‘(c) EXCLUSIVE METHOD.—Except as provided in 

11 this section, no depreciation or amortization deduction 

12 shall be allowed with respect to expenditures described in 

13 subsection (a). 

14 ‘‘(d) TREATMENT UPON ABANDONMENT.—If any 

15 property with respect to which expenditures described in 

16 subsection (a) are paid or incurred is retired or abandoned 

17 during the 84-month period described in such subsection, 

18 no deduction shall be allowed on account of such retire19 ment or abandonment and the amortization deduction 

20 under this section shall continue with respect to such pay21 ment.’’. 

22 (b) CONFORMING AMENDMENTS.— 

23 (1) The item relating to section 616 in the table 

24 of sections for part I of subchapter I of chapter 1 


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1 of the Internal Revenue Code of 1986 is amended to 

2 read as follows: 

‘‘Sec. 616. Amortization of development expenditures.’’. 

3 (2) Section 56(a)(2)(A) of such Code is amend4 ed by striking ‘‘616(a) or’’. 

5 (3) Section 59(e) of such Code is amended— 

6 (A) in paragraph (2)— 

7 (i) in subparagraph (C), by inserting 

8 ‘‘or’’ at the end; 

9 (ii) by striking subparagraph (D); and 

10 (iii) by redesignating subparagraph 

11 (E) as subparagraph (D); and 

12 (B) in paragraph (5)(A), by striking ‘‘, 

13 616(a),’’. 

14 (4) Section 263(a)(1) of such Code is amended 

15 by striking subparagraph (A). 

16 (5) Section 263A(c)(3) of such Code is amend17 ed by striking ‘‘616,’’. 

18 (6) Section 291(b) of such Code is amended— 

19 (A) in paragraph (1)(B), by striking 

20 ‘‘616(a) or’’; 

21 (B) in paragraph (2), by striking ‘‘, 

22 616(a),’’; and 

23 (C) in paragraph (3), by striking ‘‘, 

24 616(a),’’. 


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1 (7) Section 312(n)(2)(B) of such Code is 

2 amended by striking ‘‘616(a) or’’. 

3 (8) Section 381(c) of such Code is amended by 

4 striking paragraph (10). 

5 (9) Section 1016(a) of such Code is amended 

6 by striking paragraph (9). 

7 (10) Section 1254(a)(1)(A)(i) of such Code is 

8 amended by striking ‘‘, 616,’’. 

9 (c) EFFECTIVE DATE.—The amendments made by 

10 this section shall apply to expenditures paid or incurred 

11 in taxable years beginning after the date of the enactment 

12 of this Act. 

13 SEC. 129. AMORTIZATION OF CERTAIN MINING EXPLO14 RATION EXPENDITURES. 

15 (a) IN GENERAL.—Section 617 of the Internal Rev16 enue Code of 1986 is amended to read as follows: 

17 ‘‘SEC. 617. AMORTIZATION OF CERTAIN MINING EXPLO18 RATION EXPENDITURES. 

19 ‘‘(a) IN GENERAL.—Any expenditures paid or in20 curred for the purpose of ascertaining the existence, loca21 tion, extent, or quality of any deposit of ore or other min22 eral, and paid or incurred before the beginning of the de23 velopment stage of the mine, shall be allowed as a deduc24 tion ratably over the 84-month period beginning on the 

25 date that such expense was paid or incurred. 


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1 ‘‘(b) MID-MONTH CONVENTION.—For purposes of 

2 subsection (a), any expenditures paid or incurred during 

3 any month shall be treated as paid or incurred on the mid4 point of such month. 

5 ‘‘(c) EXCLUSIVE METHOD.—Except as provided in 

6 this section, no depreciation or amortization deduction 

7 shall be allowed with respect to expenditures described in 

8 subsection (a). 

9 ‘‘(d) TREATMENT UPON ABANDONMENT.—If any 

10 property with respect to which expenditures described in 

11 subsection (a) are paid or incurred is retired or abandoned 

12 during the 84-month period described in such subsection, 

13 no deduction shall be allowed on account of such retire14 ment or abandonment and the amortization deduction 

15 under this section shall continue with respect to such pay16 ment.’’. 

17 (b) CONFORMING AMENDMENTS.— 

18 (1) The item relating to section 617 in the table 

19 of sections for part I of subchapter I of chapter 1 

20 of the Internal Revenue Code of 1986 is amended to 

21 read as follows: 

‘‘Sec. 617. Amortization of certain mining exploration expenditures.’’. 

22 (2) Section 56(a) of such Code, as amended by 

23 section 128(b)(2), is amended by striking paragraph 

24 (2). 


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1 (3) Section 59(e) of such Code, as amended by 

2 section 128(b)(3), is amended— 

3 (A) in paragraph (2)— 

4 (i) in subparagraph (B), by inserting 

5 ‘‘or’’ at the end; 

6 (ii) in subparagraph (C), by striking 

7 the comma at the end and inserting a pe8 riod; and 

9 (iii) by striking subparagraph (D); 

10 and 

11 (B) by striking paragraph (5) and insert12 ing the following: 

13 ‘‘(5) DISPOSITIONS.—In the case of any dis14 position of property to which section 1254 applies 

15 (determined without regard to this section), any de16 duction under paragraph (1) with respect to 

17 amounts which are allocable to such property shall, 

18 for purposes of section 1254, be treated as a deduc19 tion allowable under section 263(c).’’. 

20 (4) Section 170(e) of such Code is amended— 

21 (A) in paragraph (1), by striking 

22 ‘‘617(d)(1),’’; and 

23 (B) in paragraph (3)(D), by striking 

24 ‘‘617,’’. 


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1 (5) Section 263A(c)(3) of such Code, as amend2 ed by section 128(b)(5), is amended by striking 

3 ‘‘291(b)(2), or 617’’ and inserting ‘‘or 291(b)(2)’’. 

4 (6) Section 291(b) of such Code, as amended by 

5 section 128(b)(6), is amended— 

6 (A) in the heading, by striking ‘‘AND MIN7 ERAL EXPLORATION AND DEVELOPMENT

8 COSTS’’; 

9 (B) by striking paragraph (1) and insert10 ing the following: 

11 ‘‘(1) IN GENERAL.—In the case of an inte12 grated oil company, the amount allowable as a de13 duction for any taxable year (determined without re14 gard to this section) under section 263(c) shall be 

15 reduced by 30 percent.’’; 

16 (C) in paragraph (2), by striking ‘‘or 

17 617(a) (as the case may be)’’; and 

18 (D) in paragraph (3), by striking ‘‘or 

19 617(a) (whichever is appropriate)’’. 

20 (7) Section 312(n), as amended by section 

21 128(b)(7), is amended by striking paragraph (2) and 

22 inserting the following: 

23 ‘‘(2) INTANGIBLE DRILLING COSTS.—Any 

24 amount allowable as a deduction under section 

25 263(c) in determining taxable income (other than 


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•S 4887 IS

1 costs incurred in connection with a nonproductive 

2 well)— 

3 ‘‘(A) shall be capitalized, and 

4 ‘‘(B) shall be allowed as a deduction rat5 ably over the 60-month period beginning with 

6 the month in which such amount was paid or 

7 incurred.’’. 

8 (8) Section 703(b) of such Code is amended— 

9 (A) in paragraph (1), by adding ‘‘or’’ at 

10 the end; 

11 (B) by striking paragraph (2); and 

12 (C) by redesignating paragraph (3) as 

13 paragraph (2). 

14 (9) Section 751(c) of such Code is amended— 

15 (A) by inserting ‘‘, as in effect on the day 

16 before the date of the enactment of the End 

17 Polluter Welfare Act of 2020’’ after ‘‘section 

18 617(f)(2)’’; and 

19 (B) by striking ‘‘617(d)(1),’’. 

20 (10) Section 1254(a)(1)(A)(i) of such Code, as 

21 amended by section 128(b)(10), is amended by strik22 ing ‘‘or 617’’. 

23 (11) Paragraph (2) of section 1363(c) of such 

24 Code is amended to read as follows: 


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1 ‘‘(2) EXCEPTION.—In the case of an S corpora2 tion, elections under section 901 (relating to taxes of 

3 foreign countries and possessions of the United 

4 States) shall be made by each shareholder sepa5 rately.’’. 

6 (c) EFFECTIVE DATE.—The amendments made by 

7 this section shall apply to expenditures paid or incurred 

8 in taxable years beginning after the date of the enactment 

9 of this Act. 

10 SEC. 130. AMORTIZATION OF INTANGIBLE DRILLING AND 

11 DEVELOPMENT COSTS IN THE CASE OF OIL 

12 AND GAS WELLS AND GEOTHERMAL WELLS. 

13 (a) IN GENERAL.—Subsection (c) of section 263 of 

14 the Internal Revenue Code of 1986 is amended to read 

15 as follows: 

16 ‘‘(c) INTANGIBLE DRILLING AND DEVELOPMENT

17 COSTS IN THE CASE OF OIL AND GAS WELLS AND GEO18 THERMAL WELLS.—Notwithstanding subsection (a), and 

19 except as provided in subsection (i), in the case of any 

20 expenses paid or incurred in connection with intangible 

21 drilling and development costs related to oil and gas wells 

22 and wells drilled for any geothermal deposit (as defined 

23 in section 613(e)(2))— 


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1 ‘‘(1) such expenses shall be allowed as a deduc2 tion ratably over the 84-month period beginning on 

3 the date that such expense was paid or incurred, 

4 ‘‘(2) any such expenses paid or incurred during 

5 any month shall be treated as paid or incurred on 

6 the mid-point of such month, 

7 ‘‘(3) except as provided in this subsection, no 

8 depreciation or amortization deduction shall be al9 lowed with respect to such expenses, and 

10 ‘‘(4) if any property with respect to which such 

11 intangible drilling and development costs are paid or 

12 incurred is retired or abandoned during such 84- 

13 month period, no deduction shall be allowed on ac14 count of such retirement or abandonment and the 

15 amortization deduction under this subsection shall 

16 continue with respect to such payment.’’. 

17 (b) CONFORMING AMENDMENTS.— 

18 (1) Section 57(a)(2)(B)(i) of the Internal Rev19 enue Code of 1986 is amended by striking ‘‘263(c) 

20 or’’. 

21 (2) Section 59(e) of such Code, as amended by 

22 sections 128 and 129, is amended— 

23 (A) in paragraph (2)— 

24 (i) in subparagraph (A), by inserting 

25 ‘‘or’’ at the end; 


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1 (ii) in subparagraph (B), by striking 

2 the comma at the end and inserting a pe3 riod; and 

4 (iii) by striking subparagraph (C); 

5 and 

6 (B) by striking paragraph (5). 

7 (3) Section 263A(c)(3) of such Code, as amend8 ed by sections 128 and 129, is amended by striking 

9 ‘‘263(c),’’. 

10 (4) Section 291 of such Code, as amended by 

11 sections 128 and 129, is amended by striking sub12 section (b). 

13 (5) Section 312(n) of such Code, as amended 

14 by sections 128 and 129, is amended by striking 

15 paragraph (2). 

16 (c) EFFECTIVE DATE.—The amendments made by 

17 this section shall apply to expenditures paid or incurred 

18 in taxable years beginning after the date of the enactment 

19 of this Act. 

20 SEC. 131. PERMANENT EXCISE TAX RATE FOR FUNDING OF 

21 BLACK LUNG DISABILITY TRUST FUND. 

22 (a) IN GENERAL.—Section 4121 of the Internal Rev23 enue Code of 1986 is amended— 

24 (1) in subsection (b)— 


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1 (A) in paragraph (1), by striking ‘‘$1.10’’ 

2 and inserting ‘‘$1.38’’; and 

3 (B) in paragraph (2), by striking ‘‘$0.55’’ 

4 and inserting ‘‘$0.69’’; and 

5 (2) by striking subsection (e). 

6 (b) EFFECTIVE DATE.—The amendments made by 

7 this section shall apply on and after the first day of the 

8 first calendar month beginning after the date of the enact9 ment of this Act. 

10 SEC. 132. TERMINATION OF RENEWABLE ELECTRICITY 

11 PRODUCTION CREDIT ELIGIBILITY FOR RE12 FINED COAL. 

13 Section 45(e)(8)(A)(ii)(II) of the Internal Revenue 

14 Code of 1986 is amended by inserting ‘‘and before the 

15 date of enactment of the End Polluter Welfare Act of 

16 2020’’ after ‘‘such taxable year’’. 

17 SEC. 133. TREATMENT OF FOREIGN OIL RELATED INCOME 

18 AS SUBPART F INCOME. 

19 (a) IN GENERAL.—Section 954(a) of the Internal 

20 Revenue Code of 1986 is amended by striking ‘‘and’’ at 

21 the end of paragraph (2), by striking the period at the 

22 end of paragraph (3) and inserting ‘‘, and’’, and by adding 

23 at the end the following new paragraph: 

24 ‘‘(4) the foreign base company oil related in25 come for the taxable year (determined under subVerDate Sep 11 2014 22:08 Nov 24, 2020 Jkt 019200 PO 00000 Frm 00047 Fmt 6652 Sfmt 6201 E:\BILLS\S4887.IS S4887

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1 section (g) and reduced as provided in subsection 

2 (b)(5)).’’. 

3 (b) FOREIGN BASE COMPANY OIL RELATED IN4 COME.—Section 954 of the Internal Revenue Code of 1986 

5 is amended by inserting after subsection (e) the following 

6 new subsection: 

7 ‘‘(g) FOREIGN BASE COMPANY OIL RELATED IN8 COME.—For purposes of this section— 

9 ‘‘(1) IN GENERAL.—Except as otherwise pro10 vided in this subsection, the term ‘foreign base com11 pany oil related income’ means foreign oil related in12 come (within the meaning of paragraphs (2) and (3) 

13 of section 907(c)) other than income derived from a 

14 source within a foreign country in connection with— 

15 ‘‘(A) oil or gas which was extracted from 

16 an oil or gas well located in such foreign coun17 try, or 

18 ‘‘(B) oil, gas, or a primary product of oil 

19 or gas which is sold by the foreign corporation 

20 or a related person for use or consumption 

21 within such country or is loaded in such coun22 try on a vessel or aircraft as fuel for such vessel 

23 or aircraft. 


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1 Such term shall not include any foreign personal 

2 holding company income (as defined in subsection 

3 (c)). 

4 ‘‘(2) PARAGRAPH (1) APPLIES ONLY WHERE

5 CORPORATION HAS PRODUCED 1,000 BARRELS PER

6 DAY OR MORE.— 

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

8 base company oil related income’ shall not in9 clude any income of a foreign corporation if 

10 such corporation is not a large oil producer for 

11 the taxable year. 

12 ‘‘(B) LARGE OIL PRODUCER.—For pur13 poses of subparagraph (A), the term ‘large oil 

14 producer’ means any corporation if, for the tax15 able year or for the preceding taxable year, the 

16 average daily production of foreign crude oil 

17 and natural gas of the related group which in18 cludes such corporation equaled or exceeded 

19 1,000 barrels. 

20 ‘‘(C) RELATED GROUP.—The term ‘related 

21 group’ means a group consisting of the foreign 

22 corporation and any other person who is a re23 lated person with respect to such corporation. 

24 ‘‘(D) AVERAGE DAILY PRODUCTION OF

25 FOREIGN CRUDE OIL AND NATURAL GAS.—For 


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1 purposes of this paragraph, the average daily 

2 production of foreign crude oil or natural gas of 

3 any related group for any taxable year (and the 

4 conversion of cubic feet of natural gas into bar5 rels) shall be determined under rules similar to 

6 the rules of section 613A (as in effect on the 

7 day before the date of enactment of the End 

8 Polluter Welfare Act of 2020) except that only 

9 crude oil or natural gas from a well located out10 side the United States shall be taken into ac11 count.’’. 

12 (c) CONFORMING AMENDMENTS.— 

13 (1) Section 952(c)(1)(B)(iii) of the Internal 

14 Revenue Code of 1986 is amended by redesignating 

15 subclauses (I) through (IV) as subclause (II) 

16 through (V), respectively, and by inserting before 

17 subclause (II) (as so redesignated) the following: 

18 ‘‘(I) foreign base company oil re19 lated income,’’. 

20 (2) Section 954(b) of such Code is amended— 

21 (A) by inserting at the end of paragraph 

22 (4) the following: ‘‘The preceding sentence shall 

23 not apply to foreign base company oil-related 

24 income described in subsection (a)(4).’’; 


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1 (B) by striking ‘‘and the foreign base com2 pany services income’’ in paragraph (5) and in3 serting ‘‘the foreign base company services in4 come, and the foreign base company oil related 

5 income’’; and 

6 (C) by adding at the end the following new 

7 paragraph: 

8 ‘‘(6) FOREIGN BASE COMPANY OIL RELATED IN9 COME NOT TREATED AS ANOTHER KIND OF BASE

10 COMPANY INCOME.—Income of a corporation which 

11 is foreign base company oil related income shall not 

12 be considered foreign base company income of such 

13 corporation under paragraph (2) or (3) of subsection 

14 (a).’’. 

15 (d) EFFECTIVE DATE.—The amendments made by 

16 this section shall apply to taxable years of foreign corpora17 tions beginning after the date of the enactment of this 

18 Act and to taxable years of United States shareholders 

19 ending with or within which such taxable years of foreign 

20 corporations end. 

21 SEC. 134. REPEAL OF EXCLUSION OF FOREIGN OIL AND 

22 GAS EXTRACTION INCOME FROM THE DETER23 MINATION OF TESTED INCOME. 

24 (a) IN GENERAL.—Section 951A(c)(2)(A)(i) of the 

25 Internal Revenue Code of 1986 is amended— 


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1 (1) by adding ‘‘and’’ at the end of subclause 

2 (III); 

3 (2) by striking ‘‘and’’ at the end of subclause 

4 (IV) and inserting ‘‘over’’; and 

5 (3) by striking subclause (V). 

6 (b) EFFECTIVE DATE.—The amendments made by 

7 this section shall apply to taxable years of foreign corpora8 tions beginning after December 31, 2020, and to taxable 

9 years of United States shareholders in which or with which 

10 such taxable years of foreign corporations end. 

11 SEC. 135. TERMINATION OF CREDIT FOR CARBON OXIDE 

12 SEQUESTRATION. 

13 (a) IN GENERAL.—Section 45Q of the Internal Rev14 enue Code of 1986 is amended by adding at the end the 

15 following: 

16 ‘‘(i) TERMINATION.—This section shall not apply 

17 with respect to any qualified carbon oxide captured after 

18 the date of enactment of the End Polluter Welfare Act 

19 of 2020.’’. 

20 (b) REPORT.— 

21 (1) IN GENERAL.—Not later than 6 months 

22 after the date of enactment of this Act, the Sec23 retary of the Treasury, or the Secretary’s delegate, 

24 shall submit a report to Congress, to be made availVerDate Sep 11 2014 22:08 Nov 24, 2020 Jkt 019200 PO 00000 Frm 00052 Fmt 6652 Sfmt 6201 E:\BILLS\S4887.IS S4887

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1 able to available to the public, which provides the 

2 following information: 

3 (A) The taxpayer identity information of 

4 any taxpayer for which the carbon oxide seques5 tration credit under section 45Q of the Internal 

6 Revenue Code of 1986 was allowed for any tax7 able year following the enactment of such sec8 tion. 

9 (B) The total amount of the credit allowed 

10 pursuant to such section to each taxpayer de11 scribed in subparagraph (A). 

12 (C) With respect to the amount described 

13 in subparagraph (B), the amount of such credit 

14 allowed with respect to each of the following: 

15 (i) Qualified carbon oxide which was 

16 captured and disposed of by the taxpayer 

17 in secure geological storage and not used 

18 by the taxpayer as described in clause (ii) 

19 or (iii). 

20 (ii) Qualified carbon oxide which was 

21 captured and used by the taxpayer as a 

22 tertiary injectant in a qualified enhanced 

23 oil or natural gas recovery project and dis24 posed of by the taxpayer in secure geologi25 cal storage. 


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1 (iii) Qualified carbon oxide which was 

2 captured and utilized by the taxpayer in a 

3 manner described in section 45Q(f)(5) of 

4 the Internal Revenue Code of 1986. 

5 (2) EXCEPTION FROM RULES REGARDING CON6 FIDENTIALITY AND DISCLOSURE OF RETURNS AND

7 RETURN INFORMATION.—Section 6103(l) of the In8 ternal Revenue Code of 1986 is amended by adding 

9 at the end the following: 

10 ‘‘(23) DISCLOSURE OF RETURN INFORMATION

11 FOR PUBLIC REPORT ON CARBON OXIDE SEQUES12 TRATION CREDIT.—The Secretary may disclose tax13 payer identity information and return information to 

14 the extent the Secretary deems necessary for pur15 poses of the report issued pursuant to section 135 

16 of the End Polluter Welfare Act of 2020.’’. 

17 SEC. 136. POWDER RIVER BASIN. 

18 (a) DESIGNATION OF THE POWDER RIVER BASIN AS

19 A COAL PRODUCING REGION.—As soon as practicable 

20 after the date of enactment of this Act, the Director of 

21 the Bureau of Land Management shall designate the Pow22 der River Basin as a coal producing region. 

23 (b) REPORT.—Not later than 1 year after the date 

24 of enactment of this Act, the Director of the Bureau of 


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1 Land Management shall submit to Congress a report that 

2 includes— 

3 (1) a study of the fair market value and the 

4 amount and effective rate of royalties paid on coal 

5 leases in the Powder River Basin compared to other 

6 national and international coal basins and markets; 

7 and 

8 (2) any policy recommendations to capture the 

9 future market value of the coal leases in the Powder 

10 River Basin. 

11 SEC. 137. STUDY AND ELIMINATION OF ADDITIONAL FOSSIL 

12 FUEL SUBSIDIES. 

13 (a) DEFINITION OF FOSSIL-FUEL PRODUCTION SUB14 SIDY.—In this section, the term ‘‘subsidy for fossil-fuel 

15 production’’ means any direct funding, tax treatment or 

16 incentive, risk-reduction benefit, financing assistance or 

17 guarantee, royalty relief, or other provision that provides 

18 a financial benefit to a fossil-fuel company for the produc19 tion of fossil fuels. 

20 (b) REPORT TO CONGRESS.—Not later than 1 year 

21 after the date of enactment of this Act, the Secretary of 

22 the Treasury or the Secretary’s delegate (referred to in 

23 this section as the ‘‘Secretary’’), in coordination with the 

24 Secretary of Energy, shall submit to Congress a report 

25 detailing each Federal law (including regulations), other 


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1 than those amended by this Act, as in effect on the date 

2 on which the report is submitted, that includes a subsidy 

3 for fossil-fuel production. 

4 (c) REPORT ON MODIFIED RECOVERY PERIOD.— 

5 (1) IN GENERAL.—Not later than 1 year after 

6 the date of enactment of this Act, the Secretary, in 

7 coordination with the Commissioner of Internal Rev8 enue, shall submit to Congress a report on the appli9 cable recovery period under the accelerated cost re10 covery system provided in section 168 of the Inter11 nal Revenue Code of 1986 for each type of property 

12 involved in fossil-fuel production, including pipelines, 

13 power generation property, refineries, and drilling 

14 equipment, to determine if any assets are receiving 

15 a subsidy for fossil-fuel production. 

16 (2) ELIMINATION OF SUBSIDY.—In the case of 

17 any type of property that the Secretary determines 

18 is receiving a subsidy for fossil-fuel production under 

19 such section 168, for property placed in service in 

20 taxable years beginning after the date of such deter21 mination, such section 168 shall not apply. The pre22 ceding sentence shall not apply to any property with 

23 respect to a taxable year unless such determination 

24 is published before the first day of such taxable 

25 year. 


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1 TITLE II—ADDITIONAL LIMITA2 TIONS ON CERTAIN FOSSIL3 FUEL PRODUCTION SUB4 SIDIES 

5 SEC. 201. LIMITATION ON CERTAIN FORMS OF ASSISTANCE 

6 UNDER THE CARES ACT. 

7 (a) EXCLUSION OF CERTAIN BUSINESSES FROM FI8 NANCIAL ASSISTANCE.— 

9 (1) DEFINITION OF ELIGIBLE BUSINESS.—Sec10 tion 4002(4)(B) of the CARES Act (Public Law 

11 116–136; 134 Stat. 281) is amended by inserting 

12 ‘‘(other than a United States business for which not 

13 less than 15 percent of the revenue is derived from 

14 the extraction, transport, storage, export, or refining 

15 of oil, natural gas, and coal)’’ after ‘‘United States 

16 business’’. 

17 (2) LOANS AND LOAN GUARANTEES FOR BUSI18 NESSES CRITICAL TO MAINTAINING NATIONAL SECU19 RITY.—Section 4003(b)(3) of the CARES Act (Pub20 lic Law 116–136; 134 Stat. 281) is amended by in21 serting ‘‘(other than a United States business for 

22 which not less than 15 percent of the revenue is de23 rived from the extraction, transport, storage, export, 

24 or refining of oil, natural gas, and coal)’’ after ‘‘na25 tional security’’. 


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1 (b) LIMITATION ON ACQUISITION OF FEDERAL

2 LEASES BY LOAN RECIPIENTS.—Section 4003(c)(1) of 

3 the CARES Act (Public Law 116–136; 134 Stat. 281) is 

4 amended by adding at the end the following: 

5 ‘‘(C) LIMITATION ON ACQUISITION OF

6 FEDERAL LEASES BY LOAN RECIPIENTS.—An 

7 eligible business that receives a loan or loan 

8 guarantee under this section may not bid on, 

9 purchase, or acquire any Federal lease or ac10 quire a Federal lease from a third party until 

11 the date on which the Secretary certifies that 

12 any loans received or guaranteed under this sec13 tion have been repaid.’’. 

14 (c) LIMITATION ON LOANS AND LOAN GUARANTEES

15 TO CERTAIN FINANCIAL INSTITUTIONS.—Section 4003 of 

16 the CARES Act (Public Law 116–136; 134 Stat. 281) is 

17 amended by adding at the end the following: 

18 ‘‘(i) LIMITATION ON LOANS AND LOAN GUARANTEES

19 TO CERTAIN FINANCIAL INSTITUTIONS.—The Secretary 

20 shall not make a loan or loan guarantee to, or other invest21 ment in, a financial institution under this section for the 

22 purpose of assisting any business for which not less than 

23 15 percent of the revenue is derived from the extraction, 

24 transport, storage, export, or refining of oil, natural gas, 

25 and coal.’’. 


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1 SEC. 202. LIMITATIONS ON BANKS OPERATING FOSSIL 

2 FUEL COMPANIES. 

3 (a) DEFINITIONS.—In this section: 

4 (1) CARES ACT.—The term ‘‘CARES Act’’ 

5 means the Coronavirus Aid, Relief, and Economic 

6 Security Act (Public Law 116–136). 

7 (2) COVERED ENTITY.—The term ‘‘covered en8 tity’’ means— 

9 (A) a solvent insured depository institution 

10 or solvent depository institution holding com11 pany (including any affiliate thereof) that issues 

12 debt that is guaranteed under the program au13 thorized by subsection (h) of section 1105 of 

14 the Dodd-Frank Wall Street Reform and Con15 sumer Protection Act, as added by section 4008 

16 of the CARES Act; 

17 (B) any entity issuing loans or extensions 

18 of credit described in section 5200(c)(7) of the 

19 Revised Statutes, as amended by section 4011 

20 of the CARES Act; 

21 (C) any bank sponsoring a money market 

22 mutual fund that benefits from a guarantee as 

23 a result of the application of section 4015(a) of 

24 the CARES Act; 


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1 (D) a qualifying community bank that is 

2 subject to interim rule issued under section 

3 4012(b)(1) of the CARES Act; and 

4 (E) an insured depository institution, bank 

5 holding company, or any affiliate thereof that 

6 does not comply with the current expected cred7 it losses methodology for estimating allowances 

8 for credit losses described in section 4014(b) of 

9 the CARES Act. 

10 (3) COVERED PERIOD.—The term ‘‘covered pe11 riod’’ means the period beginning on the date of en12 actment of this Act and ending on the date that is 

13 2 years after— 

14 (A) with respect to a covered entity de15 scribed in subparagraph (A) of paragraph (2), 

16 the date on which the program described in 

17 that subparagraph terminates; 

18 (B) with respect to a covered entity de19 scribed in subparagraph (B) of paragraph (2), 

20 the date on which the period described in sec21 tion 4011(b) of the CARES Act expires; 

22 (C) with respect to a covered entity de23 scribed in subparagraph (C) of paragraph (2), 

24 the date on which the guarantee described in 

25 that subparagraph terminates; 


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1 (D) with respect to a covered entity de2 scribed in subparagraph (D) of paragraph (2), 

3 the date on which the period described in sec4 tion 4012(b)(2) of the CARES Act expires; and 

5 (E) with respect to a covered entity de6 scribed in subparagraph (E) of paragraph (2), 

7 the date on which the period described in sec8 tion 4014(b) of the CARES Act expires. 

9 (b) PROHIBITION.—During the covered period, no 

10 covered entity, or subsidiary or affiliate of a covered enti11 ty, may take a new equity stake or otherwise own or oper12 ate, or sponsor or retain an ownership interest in any fund 

13 that takes an ownership stake in during the covered pe14 riod, any business for which 15 percent or more of the 

15 revenue is derived from the extraction, transport, storage, 

16 export, and refining of oil, natural gas, and coal. 

17 SEC. 203. MORATORIUM ON OIL AND NATURAL GAS LEASE 

18 SALES, NONCOMPETITIVE LEASES FOR OIL 

19 OR NATURAL GAS, THE ISSUANCE OF COAL 

20 LEASES, AND MODIFICATIONS TO CERTAIN 

21 REGULATIONS. 

22 Notwithstanding any other provision of law, during 

23 the period beginning on the date of enactment of this Act 

24 and ending on the termination date of the national emer25 gency declared by the President under the National EmerVerDate Sep 11 2014 22:08 Nov 24, 2020 Jkt 019200 PO 00000 Frm 00061 Fmt 6652 Sfmt 6201 E:\BILLS\S4887.IS S4887

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1 gencies Act (50 U.S.C. 1601 et seq.) with respect to the 

2 Coronavirus Disease 2019 (COVID–19), the Secretary of 

3 the Interior shall not— 

4 (1) conduct any lease sales for oil or natural 

5 gas; 

6 (2) issue any noncompetitive leases for oil or 

7 natural gas; 

8 (3) issue any coal leases; or 

9 (4) modify any regulations relating to oil, nat10 ural gas, or coal. 

11 SEC. 204. STRATEGIC PETROLEUM RESERVE. 

12 (a) MAXIMUM STORAGE CAPACITY.— 

13 (1) IN GENERAL.—Section 154(a) of the En14 ergy Policy and Conservation Act (42 U.S.C. 

15 6234(a)) is amended by striking ‘‘1 billion barrels’’ 

16 and inserting ‘‘714,500,000 barrels’’. 

17 (2) CONFORMING AMENDMENTS.— 

18 (A) Section 301(e) of the Energy Policy 

19 Act of 2005 (42 U.S.C. 6240 note; Public Law 

20 109–58) is amended by striking paragraph (1). 

21 (B) Section 159 of the Energy Policy and 

22 Conservation Act (42 U.S.C. 6239) is amended 

23 by striking subsection (j). 

24 (b) DEVELOPMENT, OPERATION, AND MAINTENANCE

25 OF RESERVE.—Section 159 of the Energy Policy and ConVerDate Sep 11 2014 22:08 Nov 24, 2020 Jkt 019200 PO 00000 Frm 00062 Fmt 6652 Sfmt 6201 E:\BILLS\S4887.IS S4887

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1 servation Act (42 U.S.C. 6239) (as amended by subsection 

2 (a)(2)(B)) is amended— 

3 (1) by redesignating subsections (f), (g), (k), 

4 and (l) as subsections (a), (b), (c), and (d), respec5 tively; and 

6 (2) by inserting after subsection (d) (as so re7 designated) the following: 

8 ‘‘(e) PROHIBITION OF STORAGE OF PETROLEUM

9 PRODUCTS NOT OWNED BY THE UNITED STATES.—The 

10 Secretary may not store in a storage or related facility 

11 of the Strategic Petroleum Reserve owned by or leased to 

12 the United States any petroleum products that are not 

13 owned by the United States.’’. 

14 (c) REPEAL OF ROYALTY-IN-KIND PROVISION.— 

15 Title I of The Department of the Interior, Environment, 

16 and Related Agencies Appropriations Act, 2006 (Public 

17 Law 109–54; 119 Stat. 512), is amended in the matter 

18 under the heading ‘‘ROYALTY AND OFFSHORE MINERALS

19 MANAGEMENT’’ under the heading ‘‘MINERALS MANAGE20 MENT SERVICE’’ under the heading ‘‘DEPARTMENT OF 

21 THE INTERIOR’’ by striking the fifth proviso (30 

22 U.S.C. 1758). 


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1 SEC. 205. LIMITATION ON AVAILABILITY OF FUNDS UNDER 

2 THE DEFENSE PRODUCTION ACT OF 1950. 

3 A fossil fuel company shall not be eligible for finan4 cial assistance made available in connection with the na5 tional emergency declared by the President under the Na6 tional Emergencies Act (50 U.S.C. 1601 et seq.) with re7 spect to the Coronavirus Disease 2019 (COVID–19) under 

8 title III of the Defense Production Act of 1950 (50 U.S.C. 

9 4531 et seq.), including through a loan guarantee, loan, 

10 direct investment, or price guarantee under that title. 

11 SEC. 206. REPEAL OF ROYALTY RELIEF PROVISIONS. 

12 (a) REPEAL.—Section 39 of the Mineral Leasing Act 

13 (30 U.S.C. 209) is repealed. 

14 (b) CONFORMING AMENDMENTS.— 

15 (1) Section 8721(b) of title 10, United States 

16 Code, is amended by striking ‘‘202-209’’ and insert17 ing ‘‘202–208’’. 

18 (2) Section 8735(a) of title 10, United States 

19 Code, is amended by striking ‘‘202-209’’ and insert20 ing ‘‘202–208’’. 

21 (3) Section 31(h) of the Mineral Leasing Act 

22 (30 U.S.C. 188(h)) is amended by striking ‘‘and the 

23 provisions of section 39 of this Act’’. 


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1 SEC. 207. EXTENSION OF PUBLIC COMMENT PERIODS AND 

2 SUSPENSION OF RULEMAKING. 

3 (a) EXTENSION OF PUBLIC COMMENT PERIODS.— 

4 Notwithstanding any other provision of law, the heads of 

5 Federal agencies shall keep open any public comment pe6 riod that was open as of March 13, 2020, during the pe7 riod beginning on the date of enactment of this Act and 

8 ending on a date, as designated by the head of the applica9 ble Federal agency, that is not earlier than 30 days after 

10 the date on which the National Emergency declared by 

11 the President under the National Emergencies Act (50 

12 U.S.C. 1601 et seq.) with respect to the Coronavirus Dis13 ease 2019 (COVID–19) is terminated. 

14 (b) SUSPENSION OF RULEMAKING.—Notwith15 standing any other provision of law, unless the head of 

16 a Federal agency determines that a rulemaking is specifi17 cally required to respond to, or recover from, the 

18 Coronavirus Disease 2019 (COVID–19) pandemic, the 

19 head of a Federal agency shall not initiate any new admin20 istrative rulemaking during the period beginning on the 

21 date of enactment of this Act and ending on a date, as 

22 designated by the head of the applicable Federal agency, 

23 that is not earlier than the date 30 days after the date 

24 on which the National Emergency declared by the Presi25 dent under the National Emergencies Act (50 U.S.C. 


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66 

•S 4887 IS

1 1601 et seq.) with respect to the Coronavirus Disease 

2 2019 (COVID–19) is terminated. 

Æ 


tkelley on DSKBCP9HB2PROD with BILLS