I 

110TH CONGRESS 

2D SESSION H. R. 5800 

To amend the Internal Revenue Code of 1986 to impose a windfall profit 

tax on oil and natural gas (and products thereof) and to appropriate 

the proceeds for the Low-Income Home Energy Assistance Program. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 15, 2008 

Mr. KANJORSKI introduced the following bill; which was referred to the Committee on Ways and Means, and in addition to the Committee on Appropriations, 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 amend the Internal Revenue Code of 1986 to impose 

a windfall profit tax on oil and natural gas (and products 

thereof) and to appropriate the proceeds for the LowIncome Home Energy Assistance Program. 

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 ‘‘Consumer Reasonable 

5 Energy Price Protection Act of 2008’’. 

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1 SEC. 2. WINDFALL PROFITS TAX. 

2 (a) IN GENERAL.—Subtitle E of the Internal Rev3 enue Code of 1986 (relating to alcohol, tobacco, and cer4 tain other excise taxes) is amended by adding at the end 

5 thereof the following new chapter: 

6 ‘‘CHAPTER 56—WINDFALL PROFIT ON 

7 CRUDE OIL, NATURAL GAS, AND PROD8 UCTS THEREOF 

‘‘Sec. 5896. Imposition of tax. 

9 ‘‘SEC. 5896. IMPOSITION OF TAX. 

10 ‘‘(a) IN GENERAL.—In addition to any other tax im11 posed under this title, there is hereby imposed an excise 

12 tax on the sale in the United States of any crude oil, nat13 ural gas, or other taxable product a tax equal to the appli14 cable percentage of the windfall profit on such sale. 

15 ‘‘(b) DEFINITIONS.—For purposes of this section— 

16 ‘‘(1) TAXABLE PRODUCT.—The term ‘taxable 

17 product’ means any fuel which is a product of crude 

18 oil or natural gas. 

19 ‘‘(2) WINDFALL PROFIT.—The term ‘windfall 

20 profit’ means, with respect to any sale, so much of 

21 the profit on such sale as exceeds a reasonable prof22 it. 

23 ‘‘(3) APPLICABLE PERCENTAGE.—The term 

24 ‘applicable percentage’ means— 

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1 ‘‘(A) 50 percent to the extent that the 

2 profit on the sale exceeds 100 percent of the 

3 reasonable profit on the sale but does not ex4 ceed 102 percent of the reasonable profit on the 

5 sale, 

6 ‘‘(B) 75 percent to the extent that the 

7 profit on the sale exceeds 102 percent of the 

8 reasonable profit on the sale but does not ex9 ceed 105 percent of the reasonable profit on the 

10 sale, and 

11 ‘‘(C) 100 percent to the extent that the 

12 profit on the sale exceeds 105 percent of the 

13 reasonable profit on the sale. 

14 ‘‘(4) REASONABLE PROFIT.—The term ‘reason15 able profit’ means the amount determined by the 

16 Reasonable Profits Board to be a reasonable profit 

17 on the sale. 

18 ‘‘(c) LIABILITY FOR PAYMENT OF TAX.—The taxes 

19 imposed by subsection (a) shall be paid by the seller.’’. 

20 (b) CLERICAL AMENDMENT.—The table of chapters 

21 for subtitle E of such Code is amended by adding at the 

22 end the following new item: 

‘‘CHAPTER 56. WINDFALL PROFIT ON CRUDE OIL AND REFINED

PETROLEUM PRODUCTS.’’. 

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

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

3 of this Act. 

4 SEC. 3. REASONABLE PROFITS BOARD. 

5 (a) ESTABLISHMENT.—There is established an inde6 pendent board to be known as the ‘‘Reasonable Profits 

7 Board’’ (hereafter in this section referred to as the 

8 ‘‘Board’’). 

9 (b) DUTIES.—The Board shall make reasonable prof10 it determinations for purposes of applying section 5896 

11 of the Internal Revenue Code of 1986 (relating to windfall 

12 profit on crude oil, natural gas, and products thereof). 

13 (c) ADVISORY COMMITTEE.—The Board shall be con14 sidered an advisory committee within the meaning of the 

15 Federal Advisory Committee Act (5 U.S.C. App.). 

16 (d) APPOINTMENT.— 

17 (1) MEMBERS.—The Board shall be composed 

18 of 3 members appointed by the President of the 

19 United States. 

20 (2) TERM.—Members of the Board shall be ap21 pointed for a term of 3 years. 

22 (3) BACKGROUND.—The members shall have no 

23 financial interests in any of the businesses for which 

24 reasonable profits are determined by the Board. 

25 (e) PAY AND TRAVEL EXPENSES.— 

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1 (1) PAY.—Notwithstanding section 7 of the 

2 Federal Advisory Committee Act (5 U.S.C. App.), 

3 members of the Board shall be paid at a rate equal 

4 to the daily equivalent of the minimum annual rate 

5 of basic pay for level IV of the Executive Schedule 

6 under section 5315 of title 5, United States Code, 

7 for each day (including travel time) during which the 

8 member is engaged in the actual performance of du9 ties vested in the Board. 

10 (2) TRAVEL EXPENSES.—Members shall receive 

11 travel expenses, including per diem in lieu of subsist12 ence, in accordance with section 5702 and 5703 of 

13 title 5, United States Code. 

14 (f) DIRECTOR OF STAFF.— 

15 (1) QUALIFICATIONS.—The Board shall appoint 

16 a Director who has no financial interests in any of 

17 the businesses for which reasonable profits are de18 termined by the Board. 

19 (2) PAY.—Notwithstanding section 7 of the 

20 Federal Advisory Committee Act (5 U.S.C. App.), 

21 the Director shall be paid at the rate of basic pay 

22 payable for level IV of the Executive Schedule under 

23 section 5315 of title 5, United States Code. 

24 (g) STAFF.— 

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1 (1) ADDITIONAL PERSONNEL.—The Director, 

2 with the approval of the Board, may appoint and fix 

3 the pay of additional personnel. 

4 (2) APPOINTMENTS.—The Director may make 

5 such appointments without regard to the provisions 

6 of title 5, United States Code, governing appoint7 ments in the competitive service, and any personnel 

8 so appointed may be paid without regard to the pro9 visions of chapter 51 and subchapter III of chapter 

10 53 of that title relating to classification and General 

11 Schedule pay rates. 

12 (3) DETAILEES.—Upon the request of the Di13 rector, the head of any Federal department or agen14 cy may detail any of the personnel of that depart15 ment or agency to the Board to assist the Board in 

16 accordance with an agreement entered into with the 

17 Board. 

18 (4) ASSISTANCE.—The Comptroller General of 

19 the United States may provide assistance, including 

20 the detailing of employees, to the Board in accord21 ance with an agreement entered into with the Board. 

22 (h) OTHER AUTHORITY.— 

23 (1) EXPERTS AND CONSULTANTS.—The Board 

24 may procure by contract, to the extent funds are 

25 available, the temporary or intermittent services of 

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1 experts or consultants pursuant to section 3109 of 

2 title 5, United States Code. 

3 (2) LEASING.—The Board may lease space and 

4 acquire personal property to the extent that funds 

5 are available. 

6 (i) FUNDING.—There are authorized to be appro7 priated such funds as are necessary to carry out this sec8 tion. 

9 SEC. 4. LOW-INCOME HOME ENERGY ASSISTANCE PRO10 GRAM. 

11 In addition to amounts appropriated pursuant to sec12 tion 2602 of the Low-Income Home Energy Assistance 

13 Act of 1981 (42 U.S.C. 8621), there are hereby appro14 priated to the Secretary of Health and Human Services 

15 amounts equivalent to the taxes received in the Treasury 

16 under section 5896 of the Internal Revenue Code of 1986. 

17 Amounts appropriated under the preceding sentence shall 

18 be available for allocation under section 2604(a)(1)(A) of 

19 such Act (42 U.S.C. 8623(a)(1)(A)). 

Æ 

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