I 

111TH CONGRESS 

2D SESSION H. R. 5780 

To reduce deficits and Government spending through the elimination of 

wasteful energy subsidies and programs. 

IN THE HOUSE OF REPRESENTATIVES 

JULY 20, 2010 

Mr. PETERS (for himself and Mr. WELCH) introduced the following bill; which 

was referred to the Committee on Energy and Commerce, and in addition 

to the Committees on Natural Resources, Ways and Means, Transportation and Infrastructure, and Science and Technology, 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 deficits and Government spending through the 

elimination of wasteful energy subsidies and programs. 

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 ‘‘Reduce and End our 

5 Deficits Using Commonsense Eliminations in the Energy 

6 Program Act of 2010’’. 


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1 SEC. 2. TERMINATION OF PAYMENTS TO CERTIFIED 

2 STATES AND INDIAN TRIBES UNDER ABAN3 DONED MINE LANDS PROGRAM. 

4 The Surface Mining Control and Reclamation Act of 

5 1977 (30 U.S.C. 1201 et seq.) is amended— 

6 (1) in section 402(g)(1)(A)(ii), by striking ‘‘or 

7 pursuant’’ and all that follows through the end of 

8 the sentence and inserting a period; 

9 (2) in section 402(g)(1)(B)(ii), by striking ‘‘or 

10 pursuant’’ and all that follows through the end of 

11 the sentence and inserting a period; and 

12 (3) by amending section 411 to read as follows: 

13 ‘‘SEC. 411. CERTIFICATION. 

14 ‘‘(a) CERTIFICATION REQUIRED.—The Secretary 

15 shall determine and certify if on the basis of the inventory 

16 referred to in section 403(c) all reclamation projects relat17 ing to the priorities described in section 403(a) for eligible 

18 land and water pursuant to section 404 in a State or of 

19 a tribe have been completed. 

20 ‘‘(b) NOTICE AND COMMENT.—The Secretary shall 

21 publish notice in the Federal Register and provide an op22 portunity for public comment regarding any certification 

23 under subsection (a). 

24 ‘‘(c) LIMITATION ON PAYMENTS TO CERTIFIED

25 STATES AND INDIAN TRIBES.— 


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1 ‘‘(1) IN GENERAL.—Except as provided in para2 graph (2), and notwithstanding any other provision 

3 of this Act, no payment may be made under this Act 

4 to a State or Indian tribe for which a determination 

5 and certification is required under subsection (a). 

6 ‘‘(2) PAYMENTS FOR HEALTH BENEFITS NOT

7 AFFECTED.—Paragraph (1) shall not apply with re8 spect to payments under subsections (h) and (i) of 

9 section 402.’’. 

10 SEC. 3. TERMINATE OIL AND GAS COMPANY TAX PREF11 ERENCES. 

12 (a) REPEAL ENHANCED OIL RECOVERY CREDIT.— 

13 Section 43 of the Internal Revenue Code of 1986 is 

14 amended by adding at the end the following new sub15 section: 

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

17 any amount, costs, or expenses paid or incurred after the 

18 date of the enactment of this subsection.’’. 

19 (b) REPEAL CREDIT FOR OIL AND GAS PRODUCED

20 FROM MARGINAL WELLS.—Section 45I of the Internal 

21 Revenue Code of 1986 is amended by adding at the end 

22 the following new subsection: 

23 ‘‘(e) TERMINATION.—This section shall not apply to 

24 any production after December 31, 2010.’’. 


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1 (c) REPEAL EXPENSING OF INTANGIBLE DRILLING

2 COSTS.—Subsection (c) of section 263 of the Internal 

3 Revenue Code of 1986 is amended by adding at the end 

4 the following new sentence: ‘‘This subsection shall not 

5 apply to any expense relating to an oil or gas well paid 

6 or incurred after December 31, 2010.’’. 

7 (d) REPEAL DEDUCTION FOR TERTIARY

8 INJECTANTS.—Section 193 of such Code is amended by 

9 adding at the end the following new subsection: 

10 ‘‘(d) TERMINATION.—Subsection (a) shall not apply 

11 to any amount paid or incurred after the date of the enact12 ment of this subsection.’’. 

13 (e) REPEAL EXCEPTION TO PASSIVE LOSS LIMITA14 TION FOR WORKING INTERESTS IN OIL AND NATURAL

15 GAS PROPERTIES.—Subsection (c) of section 469 of such 

16 Code is amended by striking paragraph (3) (relating to 

17 working interests in oil and gas property). 

18 (f) REPEAL PERCENTAGE DEPLETION FOR OIL AND

19 NATURAL GAS WELLS.— 

20 (1) IN GENERAL.—Section 613A of the Internal 

21 Revenue Code of 1986 is amended by adding at the 

22 end the following new subsection: 

23 ‘‘(f) TERMINATION.—After December 31, 2010, this 

24 section and section 611 shall not apply to any oil or gas 

25 well.’’. 


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1 (2) CONFORMING AMENDMENT.—Section 

2 613A(c)(1) of such Code is amended by striking 

3 ‘‘subsection (d)’’ and inserting ‘‘subsections (d) and 

4 (f)’’. 

5 (g) REPEAL DOMESTIC MANUFACTURING TAX DE6 DUCTION FOR OIL AND NATURAL GAS COMPANIES.— 

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

8 199(c)(4) of such Code is amended by striking 

9 ‘‘and’’ at the end of clause (ii), by striking the pe10 riod at the end of clause (iii) and inserting ‘‘, and’’, 

11 and by inserting after clause (iii) the following: 

12 ‘‘(iv) production or extraction relating 

13 to any oil or gas.’’. 

14 (2) CONFORMING AMENDMENT.—Section 

15 199(c)(4)(A)(i)(III) of such Code is amended by 

16 striking ‘‘, natural gas,’’. 

17 (h) INCREASE GEOLOGICAL AND GEOPHYSICAL AM18 ORTIZATION PERIOD FOR INDEPENDENT PRODUCERS TO

19 SEVEN YEARS.— 

20 (1) IN GENERAL.—Paragraphs (1) and (4) of 

21 section 167(h) of such Code is amended by striking 

22 ‘‘24-month’’ both places it appears and inserting ‘‘7- 

23 year’’. 


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1 (2) CONFORMING AMENDMENT.—Section 

2 167(h) of such Code is amended by striking para3 graph (5). 

4 (i) EFFECTIVE DATE.— 

5 (1) The amendments made by subsection (a), 

6 (c), (e), and (f) shall apply to amounts paid or in7 curred in taxable years beginning after December 

8 31, 2010. 

9 (2) The amendments made by subsections (b), 

10 (d), (g), and (h) shall apply to amounts paid or in11 curred in taxable years beginning after December 

12 31, 2010. 

13 SEC. 4. DEPARTMENT OF ENERGY OIL AND GAS RESEARCH 

14 AND DEVELOPMENT. 

15 Sections 965 through 967 of the Energy Policy Act 

16 of 2005 (42 U.S.C. 16295–16297) are repealed. 

17 SEC. 5. NUCLEAR WASTE REPOSITORY. 

18 The Secretary of Energy shall discontinue the appli19 cation before the Nuclear Regulatory Commission for a 

20 license to construct a high-level nuclear waste geologic re21 pository at Yucca Mountain, Nevada. 

22 SEC. 6. SALE OF CERTAIN SEPA AND TVA FACILITIES. 

23 (a) SALE OF SOUTHEASTERN POWER ADMINISTRA24 TION AND TVA FACILITIES.— 


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1 (1) SOUTHEASTERN POWER ADMINISTRATION

2 AND RELATED FACILITIES.— 

3 (A) SALE OF SOUTHEASTERN POWER AD4 MINISTRATION AND RELATED POWER GENER5 ATING ASSETS.—The Secretary of Energy shall 

6 develop and carry out a plan to provide for the 

7 sale of the electric energy generation facilities 

8 that are currently owned and operated by Fed9 eral departments and agencies under the super10 vision of, or working in coordination with, the 

11 Southeastern Power Administration, together 

12 with any and all other assets, rights, interests, 

13 and obligations held or owned by the South14 eastern Power Administration. The heads of 

15 other affected Federal departments and agen16 cies shall assist the Secretary of Energy in im17 plementing the sales authorized by this sub18 paragraph. 

19 (B) EXCLUSION OF DAMS AND RES20 ERVOIRS.—The authority of the Secretary of 

21 Energy under subparagraph (A) shall apply 

22 with respect to facilities for the generation of 

23 electric energy, including turbines, generators, 

24 controls, and substations, and shall not apply 


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1 with respect to any dam, reservoir, or water2 front property. 

3 (C) REPORT TO CONGRESS.—At least 60 

4 days before implementing a plan developed 

5 under this paragraph, the Secretary of Energy 

6 shall submit to Congress a report containing 

7 the plan. 

8 (2) TVA FACILITIES.— 

9 (A) SALE OF POWER PROGRAM.—The Ten10 nessee Valley Authority shall develop and carry 

11 out a plan to provide for the sale of the rights 

12 and assets of its electric power program. 

13 (B) HYDROELECTRIC FACILITY EXCLU14 SION.—The authority of the Tennessee Valley 

15 Authority under subparagraph (A) shall not 

16 apply with respect to any hydroelectric power 

17 generation facility owned and operated by the 

18 Authority (including dams and appurtenant 

19 works and structures). 

20 (C) REPORT TO CONGRESS.—At least 60 

21 days before implementing a plan developed 

22 under this paragraph, the Tennessee Valley Au23 thority shall submit to Congress a report con24 taining the plan. 


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1 (b) PROCEEDS.—The proceeds of any sale under this 

2 section shall be used first to offset the costs of carrying 

3 out the sale and the remaining net proceeds shall be 

4 deemed to extinguish the outstanding debt repayable to 

5 the United States and attributable to the assets being 

6 sold. Any portion of the net proceeds that exceeds the net 

7 present value of the outstanding debt repayable to the 

8 United States and attributable to the assets being sold 

9 shall be deposited in the Treasury of the United States 

10 as miscellaneous receipts. 

11 (c) TREATMENT OF SALES FOR PURPOSES OF CER12 TAIN LAWS.—A sale of assets under this section shall not 

13 be considered a disposal of Federal surplus property under 

14 subchapter III of chapter 5 of title 40, United States 

15 Code, or any other applicable provision of law. 

16 (d) DATE OF SALE.—To be extent practicable, all 

17 sales under this section shall be completed before Decem18 ber 31, 2010. 

19 (e) TERMINATION OF THE SOUTHEASTERN POWER

20 ADMINISTRATION.—Following the sale of the assets re21 ferred to in subsection (a)(1), the Secretary of Energy 

22 shall complete the business of and close out the South23 eastern Power Administration and return any unexpended 

24 balances of funds appropriated for the Southeastern 


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1 Power Administration to the Treasury of the United 

2 States. 

3 SEC. 7. VOLUME OF STRATEGIC PETROLEUM RESERVE. 

4 Section 154(a) of the Energy Policy and Conserva5 tion Act (42 U.S.C. 6234(a)) is amended by striking ‘‘1 

6 billion’’ and inserting ‘‘650,000,000’’. 

7 SEC. 8. ULTRA-DEEPWATER AND UNCONVENTIONAL NAT8 URAL GAS AND OTHER PETROLEUM RE9 SOURCES. 

10 Sections 999A through 999H of the Energy Policy 

11 Act of 2005 (42 U.S.C. 16371–16378) are repealed. 

Æ 


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