I 

112TH CONGRESS 

1ST SESSION H. R. 1102 

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 

MARCH 15, 2011 

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

on Ways and Means, and in addition to the Committee on Natural Resources, for a period to be subsequently determined by the Speaker, in 

each case for consideration of such provisions as fall within the jurisdiction of the committee 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. 

1 SEC. 2. FINDINGS. 

2 Congress finds the following: 

3 (1) High fuel costs retard economic growth and 

4 diminish the quality of life for all Americans. 

5 (2) The trucking industry is particularly hard 

6 hit by high fuel prices. 

7 (3) Attempts to address the issue of high gaso8 line costs by increasing government involvement in 

9 the market through measures such as price controls 

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

11 of gasoline lines. 

12 (4) The Federal regulations restricting drilling 

13 impose prohibitive costs on the development of new 

14 sources of energy, artificially inflating the price of 

15 gas. 

16 (5) Federal gas taxes increase the price of oil 

17 thus burdening American families, business, and 

18 truckers. 

19 (6) Allowing private parties to delay, or even 

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1 gation over the National Environmental Protection 

2 Act’s Environmental Impact Statement requirement 

3 reduces the supply of gas thus raising gas prices. 

4 (7) The so-called Jackson-Vanik (‘‘freedom-of5 emigration’’) amendment (section 402 of the Trade 

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

7 Soviet Union’s highly restrictive emigration policy of 

8 the time. 

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

10 communist rule over the Soviet Union, successor 

11 states Russia and Kazakhstan allow their citizens 

12 the right and opportunity to emigrate, free of any 

13 heavy tax on the visas or other documents required 

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

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

16 of the desire of such citizens to emigrate to the 

17 country of their choice. 

18 (9) Elimination of the Jackson-Vanik amend19 ment’s threat of trade-restricting provisions would 

20 increase the United States access to oil supplies 

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

22 SEC. 3. TERMINATION OF RESTRICTIONS ON OIL AND NAT23 URAL GAS DEVELOPMENT ON FEDERAL 

24 LANDS. 

25 (a) OUTER CONTINENTAL SHELF.— 


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1 (1) TERMINATION OF LAWS PROHIBITING EX2 PENDITURES FOR NATURAL GAS LEASING AND

3 PRELEASING ACTIVITIES.—All provisions of existing 

4 Federal law prohibiting the spending of appropriated 

5 funds to conduct oil or natural gas leasing and 

6 preleasing activities for any area of the Outer Conti7 nental Shelf shall have no force or effect. 

8 (2) REVOCATION OF EXISTING PRESIDENTIAL

9 WITHDRAWALS.—All existing withdrawals by the 

10 President under the authority of section 12 of the 

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

12 1341) are hereby revoked and are no longer in effect 

13 with respect to the leasing of areas for exploration 

14 for, and development and production of, oil or nat15 ural gas. 

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

17 and 1003 of the Alaska National Interest Lands Con18 servation Act (16 U.S.C. 3142(i) and 3143) are repealed. 

19 SEC. 4. LIMITATION OF SUITS UNDER NATIONAL ENVIRON20 MENTAL POLICY ACT OF 1969. 

21 Section 102 of the National Environmental Policy 

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

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

24 adding at the end the following: 


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

2 under subsection (a)(2)(C) is not subject to judicial re3 view.’’. 

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

5 (a) INCREASE OF EXPENSING FOR REFINERIES.— 

6 Subsection (a) of section 179C of the Internal Revenue 

7 Code of 1986 (relating to election to expense certain refin8 eries) is amended by striking ‘‘50 percent’’ and inserting 

9 ‘‘100 percent’’. 

10 (b) CLASS LIFE FOR REFINERIES.— 

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

12 168(e)(3) of the Internal Revenue Code of 1986 (re13 lating to 5-year property) is amended by striking 

14 ‘‘and’’ at the end of clause (vi), by striking the pe15 riod at the end of clause (vii) and inserting ‘‘, and’’, 

16 and by inserting after clause (vii) the following new 

17 clause: 

18 ‘‘(viii) any petroleum refining prop19 erty.’’. 

20 (2) PETROLEUM REFINING ASSET.—Section 

21 168(i) of such Code is amended by adding at the 

22 end the following new paragraph: 

23 ‘‘(20) PETROLEUM REFINING PROPERTY.— 

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

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1 leum refining, including assets used for the dis2 tillation, fractionation, and catalytic cracking of 

3 crude petroleum into gasoline and its other 

4 components. 

5 ‘‘(B) ASSET MUST MEET ENVIRONMENTAL

6 LAWS.—Such term shall not include any asset 

7 which does not meet all applicable environ8 mental laws in effect on the date such asset was 

9 placed in service. For purposes of the preceding 

10 sentence, a waiver under the Clean Air Act 

11 shall not be taken into account in determining 

12 whether the applicable environmental laws have 

13 been met. 

14 ‘‘(C) SPECIAL RULE FOR MERGERS AND

15 ACQUISITIONS.—Such term shall not include 

16 any asset with respect to which a deduction was 

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

18 taxpayer in any preceding year.’’. 

19 (3) EFFECTIVE DATE.— 

20 (A) IN GENERAL.—The amendments made 

21 by this subsection shall apply to refineries 

22 placed in service after the date of the enact23 ment of this Act. 

24 (B) EXCEPTION.—The amendments made 

25 by this section shall not apply to any refinery 


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1 with respect to which the taxpayer has entered 

2 into a binding contract for the construction 

3 thereof on or before the date of the enactment 

4 of this Act. 

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

6 FUELS WHEN WEEKLY UNITED STATES RE7 TAIL GASOLINE PRICES EXCEED BENCH8 MARK. 

9 (a) IN GENERAL.—Section 4081 of the Internal Rev10 enue Code of 1986 (relating to imposition of tax on motor 

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

12 following new subsection: 

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

14 WHEN RETAIL GASOLINE EXCEEDS BENCHMARK.— 

15 ‘‘(1) IN GENERAL.—During any suspension pe16 riod, the tax imposed by this section and section 

17 4041 on highway motor fuel shall be suspended. 

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

19 purposes of this subsection— 

20 ‘‘(A) SUSPENSION PERIOD.—The term 

21 ‘suspension period’ means the period— 

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

23 the weekly United States retail gasoline 

24 price, regular grade (as published by the 

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1 partment of Energy), inclusive of such tax, 

2 is greater than $3.00 per gallon, and 

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

4 price (as so published), without regard to 

5 this subsection, does not exceed $3.00 per 

6 gallon. 

7 ‘‘(B) HIGHWAY MOTOR FUEL.—The term 

8 ‘highway motor fuel’ means any fuel subject to 

9 tax under this section or section 4041 other 

10 than aviation gasoline and aviation-grade ker11 osene.’’. 

12 (b) MAINTENANCE OF TRUST FUNDS DEPOSITS; 

13 AMOUNTS APPROPRIATED TO TRUST FUNDS TREATED AS

14 TAXES.— 

15 (1) IN GENERAL.—There is hereby appro16 priated (out of any money in the Treasury not other17 wise appropriated) to each trust fund which would 

18 (but for this subsection) receive reduced revenues as 

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

20 of section 4081(f) of the Internal Revenue Code of 

21 1986 (as added by this section) an amount equal to 

22 such reduction in revenues. Amounts appropriated 

23 by the preceding sentence to any trust fund— 

24 (A) shall be transferred from the general 

25 fund at such times and in such manner as to 


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1 replicate to the extent possible the transfers 

2 which would have occurred had such section 

3 4081(f) not been enacted, and 

4 (B) shall be treated for all purposes of 

5 Federal law as taxes received under the appro6 priate section referred to in such section 

7 4081(f). 

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

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

10 of this Act. 

11 (d) FLOOR STOCK REFUNDS.— 

12 (1) IN GENERAL.—If— 

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

14 been imposed under section 4081 of the Inter15 nal Revenue Code of 1986 on any highway 

16 motor fuel, and 

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

18 dealer and has not been used and is intended 

19 for sale, 

20 there shall be credited or refunded (without interest) 

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

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

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

24 over the tax which would be imposed on such fuel 

25 had the taxable event occurred on such date. 


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1 (2) TIME FOR FILING CLAIMS.—No credit or re2 fund shall be allowed or made under this subsection 

3 unless— 

4 (A) claim therefor is filed with the Sec5 retary of the Treasury before the date which is 

6 6 months after the tax suspension date based 

7 on a request submitted to the taxpayer before 

8 the date which is 3 months after the tax sus9 pension date by the dealer who held the high10 way motor fuel on such date, and 

11 (B) the taxpayer has repaid or agreed to 

12 repay the amount so claimed to such dealer or 

13 has obtained the written consent of such dealer 

14 to the allowance of the credit or the making of 

15 the refund. 

16 (3) EXCEPTION FOR FUEL HELD IN RETAIL

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

18 this subsection with respect to any highway motor 

19 fuel in retail stocks held at the place where intended 

20 to be sold at retail. 

21 (4) DEFINITIONS.—For purposes of this sub22 section— 

23 (A) TAX SUSPENSION DATE.—The term 

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

25 any suspension period in effect under section 


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1 4081(f) of the Internal Revenue Code of 1986 

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

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

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

5 meanings given to such terms by section 6412 

6 of such Code. 

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

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

9 6412 of such Code shall apply for purposes of this 

10 subsection. 

11 (e) FLOOR STOCKS TAX.— 

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

13 highway motor fuel which is held on the tax restora14 tion date by any person, there is hereby imposed a 

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

16 would be imposed on such fuel had the taxable event 

17 occurred on such date over the tax (if any) pre18 viously paid (and not credited or refunded) on such 

19 fuel. 

20 (2) LIABILITY FOR TAX AND METHOD OF PAY21 MENT.— 

22 (A) LIABILITY FOR TAX.—The person 

23 holding highway motor fuel on the tax restora24 tion date to which the tax imposed by para25 graph (1) applies shall be liable for such tax. 


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1 (B) METHOD OF PAYMENT.—The tax im2 posed by paragraph (1) shall be paid in such 

3 manner as the Secretary shall prescribe. 

4 (C) TIME FOR PAYMENT.—The tax im5 posed by paragraph (1) shall be paid on or be6 fore the 45th day after the tax restoration date. 

7 (3) DEFINITIONS.—For purposes of this sub8 section— 

9 (A) TAX RESTORATION DATE.—The term 

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

11 the suspension period (as defined in section 

12 4081(f) of the Internal Revenue Code of 1986). 

13 (B) HIGHWAY MOTOR FUEL.—The term 

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

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

16 (C) HELD BY A PERSON.—A highway 

17 motor fuel shall be considered as held by a per18 son if title thereto has passed to such person 

19 (whether or not delivery to the person has been 

20 made). 

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

22 means the Secretary of the Treasury or the 

23 Secretary’s delegate. 

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

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


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1 highway motor fuel held by any person exclusively 

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

3 tax is allowable for such use. 

4 (5) EXCEPTION FOR CERTAIN AMOUNTS OF

5 FUEL.— 

6 (A) IN GENERAL.—No tax shall be im7 posed by paragraph (1) on any highway motor 

8 fuel held on the tax restoration date by any per9 son if the aggregate amount of such highway 

10 motor fuel held by such person on such date 

11 does not exceed 2,000 gallons. The preceding 

12 sentence shall apply only if such person submits 

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

14 required by the Secretary) such information as 

15 the Secretary shall require for purposes of this 

16 subparagraph. 

17 (B) EXEMPT FUEL.—For purposes of sub18 paragraph (A), there shall not be taken into ac19 count any highway motor fuel held by any per20 son which is exempt from the tax imposed by 

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

22 (C) CONTROLLED GROUPS.—For purposes 

23 of this subsection— 

24 (i) CORPORATIONS.— 


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1 (I) IN GENERAL.—All persons 

2 treated as a controlled group shall be 

3 treated as 1 person. 

4 (II) CONTROLLED GROUP.—The 

5 term ‘‘controlled group’’ has the 

6 meaning given to such term by sub7 section (a) of section 1563 of such 

8 Code; except that for such purposes 

9 the phrase ‘‘more than 50 percent’’ 

10 shall be substituted for the phrase ‘‘at 

11 least 80 percent’’ each place it ap12 pears in such subsection. 

13 (ii) NONINCORPORATED PERSONS

14 UNDER COMMON CONTROL.—Under regula15 tions prescribed by the Secretary, prin16 ciples similar to the principles of subpara17 graph (A) shall apply to a group of per18 sons under common control if 1 or more of 

19 such persons is not a corporation. 

20 (6) OTHER LAWS APPLICABLE.—All provisions 

21 of law, including penalties, applicable with respect to 

22 the taxes imposed by section 4081 of such Code 

23 shall, insofar as applicable and not inconsistent with 

24 the provisions of this subsection, apply with respect 

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


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1 the same extent as if such taxes were imposed by 

2 such section. 

3 SEC. 7. INCREASE IN MILEAGE REIMBURSEMENT RATES. 

4 (a) BUSINESS.—For purposes of the Internal Rev5 enue Code of 1986, after the date of the enactment of 

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

7 for computing the deductible costs of operating an auto8 mobile for business purposes shall be not less than 70 

9 cents per mile. 

10 (b) MEDICAL, MOVING, AND CHARITABLE CON11 TRIBUTION RATES.—For any day during the period under 

12 which highway motor fuel taxes are suspended under sec13 tion 4081(f) of the Internal Revenue Code of 1986— 

14 (1) the optional standard mileage rates to be 

15 used for computing the deductible costs of operating 

16 an automobile for medical, moving, and charitable 

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

18 such day for business purposes, and 

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

20 apply. 

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

22 THE TRADE ACT OF 1974 TO THE RUSSIAN 

23 FEDERATION AND KAZAKHSTAN. 

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1 standing any provision of title IV of the Trade Act of 1974 

2 (19 U.S.C. 2431 et seq.), the President may— 

3 (1) determine that such title should no longer 

4 apply to both the Russian Federation and 

5 Kazakhstan; and 

6 (2) after making a determination under para7 graph (1) with respect to the Russian Federation 

8 and Kazakhstan, proclaim the extension of non9 discriminatory treatment (normal trade relations 

10 treatment) to the products of those countries. 

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

12 On and after the effective date of the extension under sub13 section (a)(2) of nondiscriminatory treatment to the prod14 ucts of the Russian Federation and Kazakhstan, title IV 

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

16 countries. 

Æ 


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