II 

110TH CONGRESS 

1ST SESSION S. 1238 

To repeal certain provisions of the Energy Policy Act of 2005, close tax 

loopholes, impose windfall profits tax on major integrated oil companies, 

provide a reserve fund for biofuels research and infrastructure, and 

payments for low-income households. 

IN THE SENATE OF THE UNITED STATES 

APRIL 26, 2007 

Mr. CASEY (for himself and Mr. WEBB) introduced the following bill; which 

was read twice and referred to the Committee on Finance 

A BILL 

To repeal certain provisions of the Energy Policy Act of 

2005, close tax loopholes, impose windfall profits tax 

on major integrated oil companies, provide a reserve 

fund for biofuels research and infrastructure, and payments for low-income households. 

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; AMENDMENT OF 1986 CODE. 

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

5 ‘‘Energy Security and Corporate Accountability Act of 

6 2007’’. 


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1 (b) AMENDMENT OF 1986 CODE.—Except as other2 wise expressly provided, whenever in this Act an amend3 ment or repeal is expressed in terms of an amendment 

4 to, or repeal of, a section or other provision, the reference 

5 shall be considered to be made to a section or other provi6 sion of the Internal Revenue Code of 1986. 

7 SEC. 2. REVALUATION OF LIFO INVENTORIES OF MAJOR IN8 TEGRATED OIL COMPANIES. 

9 (a) GENERAL RULE.—Notwithstanding any other 

10 provision of law, if a taxpayer is a major integrated oil 

11 company (as defined in section 167(h)(5)(B)) for its last 

12 taxable year ending in calendar year 2006, the taxpayer 

13 shall— 

14 (1) increase, effective as of the close of such 

15 taxable year, the value of each historic LIFO layer 

16 of inventories of crude oil, natural gas, or any other 

17 petroleum product (within the meaning of section 

18 4611) by the layer adjustment amount, and 

19 (2) decrease its cost of goods sold for such tax20 able year by the aggregate amount of the increases 

21 under paragraph (1). 

22 If the aggregate amount of the increases under paragraph 

23 (1) exceed the taxpayer’s cost of goods sold for such tax24 able year, the taxpayer’s gross income for such taxable 

25 year shall be increased by the amount of such excess. 


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1 (b) LAYER ADJUSTMENT AMOUNT.—For purposes of 

2 this section— 

3 (1) IN GENERAL.—The term ‘‘layer adjustment 

4 amount’’ means, with respect to any historic LIFO 

5 layer, the product of— 

6 (A) $18.75, and 

7 (B) the number of barrels of crude oil (or 

8 in the case of natural gas or other petroleum 

9 products, the number of barrel-of-oil equiva10 lents) represented by the layer. 

11 (2) BARREL-OF-OIL EQUIVALENT.—The term 

12 ‘‘barrel-of-oil equivalent’’ has the meaning given 

13 such term by section 45K. 

14 (c) APPLICATION OF REQUIREMENT.— 

15 (1) NO CHANGE IN METHOD OF ACCOUNTING.— 

16 Any adjustment required by this section shall not be 

17 treated as a change in method of accounting. 

18 (2) UNDERPAYMENTS OF ESTIMATED TAX.—No 

19 addition to the tax shall be made under section 6655 

20 (relating to failure by corporation to pay estimated 

21 tax) with respect to any underpayment of an install22 ment required to be paid with respect to the taxable 

23 year described in subsection (a) to the extent such 

24 underpayment was created or increased by this sec25 tion. 


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1 SEC. 3. MODIFICATIONS OF FOREIGN TAX CREDIT RULES 

2 APPLICABLE TO MAJOR INTEGRATED OIL 

3 COMPANIES WHICH ARE DUAL CAPACITY 

4 TAXPAYERS. 

5 (a) IN GENERAL.—Section 901 (relating to credit for 

6 taxes of foreign countries and of possessions of the United 

7 States) is amended by redesignating subsection (m) as 

8 subsection (n) and by inserting after subsection (l) the fol9 lowing new subsection: 

10 ‘‘(m) SPECIAL RULES RELATING TO MAJOR INTE11 GRATED OIL COMPANIES WHICH ARE DUAL CAPACITY

12 TAXPAYERS.— 

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

14 other provision of this chapter, any amount paid or 

15 accrued by a dual capacity taxpayer which is a 

16 major integrated oil company (as defined in section 

17 167(h)(5)(B)) to a foreign country or possession of 

18 the United States for any period shall not be consid19 ered a tax— 

20 ‘‘(A) if, for such period, the foreign coun21 try or possession does not impose a generally 

22 applicable income tax, or 

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

24 the amount (determined in accordance with reg25 ulations) which— 


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1 ‘‘(i) is paid by such dual capacity tax2 payer pursuant to the generally applicable 

3 income tax imposed by the country or pos4 session, or 

5 ‘‘(ii) would be paid if the generally ap6 plicable income tax imposed by the country 

7 or possession were applicable to such dual 

8 capacity taxpayer. 

9 Nothing in this paragraph shall be construed to 

10 imply the proper treatment of any such amount 

11 not in excess of the amount determined under 

12 subparagraph (B). 

13 ‘‘(2) DUAL CAPACITY TAXPAYER.—For pur14 poses of this subsection, the term ‘dual capacity tax15 payer’ means, with respect to any foreign country or 

16 possession of the United States, a person who— 

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

18 possession, and 

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

20 indirectly a specific economic benefit (as deter21 mined in accordance with regulations) from 

22 such country or possession. 

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

24 For purposes of this subsection— 


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

2 applicable income tax’ means an income tax (or 

3 a series of income taxes) which is generally im4 posed under the laws of a foreign country or 

5 possession on income derived from the conduct 

6 of a trade or business within such country or 

7 possession. 

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

9 include a tax unless it has substantial applica10 tion, by its terms and in practice, to— 

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

12 taxpayers, and 

13 ‘‘(ii) persons who are citizens or resi14 dents of the foreign country or posses15 sion.’’. 

16 (b) EFFECTIVE DATE.— 

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

18 this section shall apply to taxes paid or accrued in 

19 taxable years beginning after the date of the enact20 ment of this Act. 

21 (2) CONTRARY TREATY OBLIGATIONS

22 UPHELD.—The amendments made by this section 

23 shall not apply to the extent contrary to any treaty 

24 obligation of the United States. 


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1 SEC. 4. 7-YEAR AMORTIZATION OF GEOLOGICAL AND GEO2 PHYSICAL EXPENDITURES FOR CERTAIN 

3 MAJOR INTEGRATED OIL COMPANIES. 

4 (a) IN GENERAL.—Subparagraph (A) of section 

5 167(h)(5) (relating to special rule for major integrated oil 

6 companies) is amended by striking ‘‘5-year’’ and inserting 

7 ‘‘7-year’’. 

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

9 this section shall apply to amounts paid or incurred after 

10 the date of the enactment of this Act. 

11 SEC. 5. SUSPENSION OF ROYALTY RELIEF. 

12 (a) REPEALS.—Sections 344 and 345 of the Energy 

13 Policy Act of 2005 (42 U.S.C. 15904, 15905) are re14 pealed. 

15 (b) TERMINATION OF ALASKA OFFSHORE ROYALTY

16 SUSPENSION.—Section 8(a)(3)(B) of the Outer Conti17 nental Shelf Lands Act (43 U.S.C. 1337(a)(3)(B)) is 

18 amended by striking ‘‘and in the Planning Areas offshore 

19 Alaska’’. 

20 SEC. 6. NATIONAL ENERGY SECURITY RESEARCH AND IN21 VESTMENT RESERVE. 

22 (a) ESTABLISHMENT.—For budgetary purposes, for 

23 each fiscal year, an amount equal to the total net amount 

24 of savings to the Federal Government for the fiscal year 

25 resulting from the amendments made by sections 2, 3, 4, 

26 and 5, as determined by the Secretary of the Treasury, 


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1 shall be held in a separate account in the Treasury of the 

2 United States, to be known as the ‘‘National Energy Secu3 rity Research and Investment Reserve’’ (referred to in this 

4 section as the ‘‘Reserve’’). 

5 (b) USE.—Of the amounts in the Reserve— 

6 (1) 50 percent shall be available to offset the 

7 cost of legislation enacted after the date of enact8 ment of this Act to carry out energy research in the 

9 United States, including research relating to— 

10 (A) ethanol, and 

11 (B) biodiesel, and 

12 (2) 50 percent shall be available to offset the 

13 cost of legislation enacted after the date of enact14 ment of this Act to carry out the development, pur15 chase, and installation of infrastructure (including 

16 new fueling pumps, retrofitting of existing fueling 

17 pumps, and equipment necessary for the transpor18 tation of biofuels) necessary to deliver new fuels to 

19 consumers. 

20 (c) PROCEDURE FOR ADJUSTMENTS.— 

21 (1) BUDGET COMMITTEE CHAIRMAN.—After the 

22 reporting of a bill or joint resolution, or the offering 

23 of an amendment to the bill or joint resolution or 

24 the submission of a conference report for the bill or 

25 joint resolution, providing funding for the purposes 


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1 described in subsection (b) in excess of the amounts 

2 provided for those purposes for fiscal year 2007, the 

3 chairman of the Committee on the Budget of the ap4 plicable House of Congress shall make the adjust5 ments required under paragraph (2) for the amount 

6 of new budget authority and outlays in the measure 

7 and the outlays flowing from that budget authority. 

8 (2) MATTERS TO BE ADJUSTED.—The adjust9 ments referred to in paragraph (1) are to be made 

10 to— 

11 (A) the discretionary spending limits, if 

12 any, set forth in the appropriate concurrent res13 olution on the budget, 

14 (B) the allocations made pursuant to the 

15 appropriate concurrent resolution on the budget 

16 pursuant to section 302(a) of the Congressional 

17 Budget Act of 1974 (2 U.S.C. 633(a)), and 

18 (C) the budget aggregates contained in the 

19 appropriate concurrent resolution on the budget 

20 as required by section 301(a) of the Congres21 sional Budget Act of 1974 (2 U.S.C. 632(a)). 

22 (3) AMOUNTS OF ADJUSTMENTS.—The adjust23 ments referred to in paragraphs (1) and (2) shall 

24 not exceed the receipts estimated by the Congres25 sional Budget Office that are attributable to sections 


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1 2, 3, 4, and 5 (and the amendments made by such 

2 sections) for the fiscal year in which the adjustments 

3 are made. 

4 SEC. 7. WINDFALL PROFITS TAX. 

5 (a) IN GENERAL.—Subtitle E (relating to alcohol, to6 bacco, and certain other excise taxes) is amended by add7 ing at the end the following new chapter: 

8 ‘‘CHAPTER 56—WINDFALL PROFITS ON 

9 CRUDE OIL 

‘‘Sec. 5896. Imposition of tax. 

‘‘Sec. 5897. Windfall profit; removal price; adjusted base price; qualified investment. 

‘‘Sec. 5898. Special rules and definitions. 

10 ‘‘SEC. 5896. IMPOSITION OF TAX. 

11 ‘‘(a) IN GENERAL.—In addition to any other tax im12 posed under this title, there is hereby imposed on any 

13 major integrated oil company (as defined in section 

14 167(h)(5)(B)) an excise tax equal to the excess of— 

15 ‘‘(1) the amount equal to 50 percent of the 

16 windfall profit from all barrels of taxable crude oil 

17 removed from the property during each taxable year, 

18 over 

19 ‘‘(2) the amount of qualified investment by such 

20 company during such taxable year. 

21 ‘‘(b) FRACTIONAL PART OF BARREL.—In the case of 

22 a fraction of a barrel, the tax imposed by subsection (a) 


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1 shall be the same fraction of the amount of such tax im2 posed on the whole barrel. 

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

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

5 crude oil. 

6 ‘‘SEC. 5897. WINDFALL PROFIT; REMOVAL PRICE; AD7 JUSTED BASE PRICE; QUALIFIED INVEST8 MENT. 

9 ‘‘(a) GENERAL RULE.—For purposes of this chapter, 

10 the term ‘windfall profit’ means the excess of the removal 

11 price of the barrel of taxable crude oil over the adjusted 

12 base price of such barrel. 

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 the amount for which the barrel of taxable 

18 crude oil is sold. 

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

20 the case of a sale between related persons, the re21 moval price shall not be less than the constructive 

22 sales price for purposes of determining gross income 

23 from the property under section 613. 

24 ‘‘(3) OIL REMOVED FROM PROPERTY BEFORE

25 SALE.—If crude oil is removed from the property beVerDate Aug 31 2005 22:59 Apr 27, 2007 Jkt 059200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\S1238.IS S1238

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1 fore it is sold, the removal price shall be the con2 structive sales price for purposes of determining 

3 gross income from the property under section 613. 

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

5 manufacture or conversion of crude oil into refined 

6 products begins before such oil is removed from the 

7 property— 

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

9 on the day such manufacture or conversion be10 gins, and 

11 ‘‘(B) the removal price shall be the con12 structive sales price for purposes of determining 

13 gross income from the property under section 

14 613. 

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

16 meaning given such term by section 614. 

17 ‘‘(c) ADJUSTED BASE PRICE DEFINED.— 

18 ‘‘(1) IN GENERAL.—For purposes of this chap19 ter, the term ‘adjusted base price’ means $50 for 

20 each barrel of taxable crude oil plus an amount 

21 equal to— 

22 ‘‘(A) such base price, multiplied by 

23 ‘‘(B) the inflation adjustment for the cal24 endar year in which the taxable crude oil is re25 moved from the property. 


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1 The amount determined under the preceding sen2 tence shall be rounded to the nearest cent. 

3 ‘‘(2) INFLATION ADJUSTMENT.— 

4 ‘‘(A) IN GENERAL.—For purposes of para5 graph (1), the inflation adjustment for any cal6 endar year after 2008 is the percentage by 

7 which— 

8 ‘‘(i) the implicit price deflator for the 

9 gross national product for the preceding 

10 calendar year, exceeds 

11 ‘‘(ii) such deflator for the calendar 

12 year ending December 31, 2007. 

13 ‘‘(B) FIRST REVISION OF PRICE DEFLATOR

14 USED.—For purposes of subparagraph (A), the 

15 first revision of the price deflator shall be used. 

16 ‘‘(d) QUALIFIED INVESTMENT.—For purposes of this 

17 chapter— 

18 ‘‘(1) IN GENERAL.—The term ‘qualified invest19 ment’ means any amount paid or incurred with re20 spect to— 

21 ‘‘(A) section 263(c) costs, 

22 ‘‘(B) qualified refinery property (as defined 

23 in section 179C(c) and determined without re24 gard to any termination date), 


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1 ‘‘(C) any qualified facility described in 

2 paragraph (1), (2), (3), or (4) of section 45(d) 

3 (determined without regard to any placed in 

4 service date), 

5 ‘‘(D) any facility for the production of al6 cohol used as a fuel (within the meaning of sec7 tion 40) or biodiesel or agri-biodiesel used as a 

8 fuel (within the meaning of section 40A). 

9 ‘‘(2) SECTION 263(c) COSTS.—For purposes of 

10 this subsection, the term ‘section 263(c) costs’ 

11 means intangible drilling and development costs in12 curred by the taxpayer which (by reason of an elec13 tion under section 263(c)) may be deducted as ex14 penses for purposes of this title (other than this 

15 paragraph). Such term shall not include costs in16 curred in drilling a nonproductive well. 

17 ‘‘SEC. 5898. SPECIAL RULES AND DEFINITIONS . 

18 ‘‘(a) WITHHOLDING AND DEPOSIT OF TAX.—The 

19 Secretary shall provide such rules as are necessary for the 

20 withholding and deposit of the tax imposed under section 

21 5896 on any taxable crude oil. 

22 ‘‘(b) RECORDS AND INFORMATION.—Each taxpayer 

23 liable for tax under section 5896 shall keep such records, 

24 make such returns, and furnish such information (to the 

25 Secretary and to other persons having an interest in the 


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1 taxable crude oil) with respect to such oil as the Secretary 

2 may by regulations prescribe. 

3 ‘‘(c) RETURN OF WINDFALL PROFIT TAX.—The Sec4 retary shall provide for the filing and the time of such 

5 filing of the return of the tax imposed under section 5896. 

6 ‘‘(d) DEFINITIONS.—For purposes of this chapter— 

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

8 the holder of the economic interest with respect to 

9 the crude oil. 

10 ‘‘(2) CRUDE OIL.— 

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

12 includes crude oil condensates and natural gas13 oline. 

14 ‘‘(B) EXCLUSION OF NEWLY DISCOVERED

15 OIL.—Such term shall not include any oil pro16 duced from a well drilled after the date of the 

17 enactment of this chapter, except with respect 

18 to any oil produced from a well drilled after 

19 such date on any proven oil or gas property 

20 (within the meaning of section 613A(c)(9)(A), 

21 as in effect before the date of the enactment of 

22 the Omnibus Budget Reconciliation Act of 

23 1990). 

24 ‘‘(3) BARREL.—The term ‘barrel’ means 42 

25 United States gallons. 


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1 ‘‘(e) ADJUSTMENT OF REMOVAL PRICE.—In deter2 mining the removal price of oil from a property in the case 

3 of any transaction, the Secretary may adjust the removal 

4 price to reflect clearly the fair market value of oil removed. 

5 ‘‘(f) REGULATIONS.—The Secretary shall prescribe 

6 such regulations as may be necessary or appropriate to 

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

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

9 for subtitle E is amended by adding at the end the fol10 lowing new item: 

‘‘CHAPTER 56. WINDFALL PROFIT ON CRUDE OIL’’. 

11 (c) DEDUCTIBILITY OF WINDFALL PROFIT TAX.— 

12 The first sentence of section 164(a) (relating to deduction 

13 for taxes) is amended by inserting after paragraph (5) the 

14 following new paragraph: 

15 ‘‘(6) The windfall profit tax imposed by section 

16 5896.’’. 

17 (d) EFFECTIVE DATE.— 

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

19 this subsection shall apply to crude oil removed after 

20 the date of the enactment of this Act, in taxable 

21 years ending after such date. 

22 (2) TRANSITIONAL RULES.—For the period 

23 ending December 31, 2007, the Secretary of the 

24 Treasury or the Secretary’s delegate shall prescribe 

25 rules relating to the administration of chapter 56. 


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1 To the extent provided in such rules, such rules shall 

2 supplement or supplant for such period the adminis3 trative provisions contained in chapter 56 (or in so 

4 much of subtitle F as relates to such chapter 56). 

5 SEC. 8. LOW-INCOME TRANSPORTATION ENERGY ASSIST6 ANCE PROGRAM. 

7 (a) DEFINITIONS.—In this section: 

8 (1) ELIGIBLE HOUSEHOLD.—The term ‘‘eligible 

9 household’’ means— 

10 (A) a household in which 1 or more indi11 viduals are receiving assistance or payments re12 ferred to in any of clauses (i) through (iv) of 

13 section 2605(b)(2)(A) of the Low-Income Home 

14 Energy Assistance Act of 1981 (42 U.S.C. 

15 8624(b)(2)(A)); 

16 (B) a household that provides such docu17 mentation of costs incurred for eligible trans18 portation expenses as the Secretary may rea19 sonably require; and 

20 (C) a low-income household. 

21 (2) ELIGIBLE TRANSPORTATION EXPENSE.— 

22 The term ‘‘eligible transportation expense’’ means 

23 the cost incurred by an individual or family in pur24 chasing— 


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1 (A) gasoline or diesel fuel for use by the 

2 individual or family for transportation purposes; 

3 or 

4 (B) a bus pass, train ticket, or other mass5 transit fare for use by the individual or family. 

6 (3) FUND.—The term ‘‘Fund’’ means the Low7 Income Transportation Energy Assistance Fund es8 tablished by subsection (f)(1). 

9 (4) INDIAN TRIBE.—The term ‘‘Indian tribe’’ 

10 has the meaning given the term in section 4 of the 

11 Indian Self-Determination and Education Assistance 

12 Act (25 U.S.C. 450b). 

13 (5) LOW-INCOME HOUSEHOLD.—The term 

14 ‘‘low-income household’’ means a household with a 

15 total annual household income that does not exceed 

16 the greater of— 

17 (A) an amount equal to 150 percent of the 

18 poverty level of a State; or 

19 (B) an amount equal to 60 percent of the 

20 State median income. 

21 (6) POVERTY LEVEL.—The term ‘‘poverty 

22 level’’ has the meaning given the term in section 

23 2603 of the Low-Income Home Energy Assistance 

24 Act of 1981 (42 U.S.C. 8622). 


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1 (7) PROGRAM.—The term ‘‘program’’ means 

2 the Low-Income Transportation Energy Assistance 

3 Program established under subsection (b). 

4 (8) SECRETARY.—The term ‘‘Secretary’’ means 

5 the Secretary of Health and Human Services. 

6 (9) STATE.—The term ‘‘State’’ means— 

7 (A) a State; and 

8 (B) the District of Columbia. 

9 (10) STATE MEDIAN INCOME.—The term 

10 ‘‘State median income’’ has the meaning given the 

11 term in section 2603 of the Low-Income Home En12 ergy Assistance Act of 1981 (42 U.S.C. 8622). 

13 (b) ESTABLISHMENT.—The Secretary shall establish 

14 and carry out a program, to be known as the ‘‘Low-Income 

15 Transportation Energy Assistance Program’’, under which 

16 the Secretary shall use amounts in the Fund to allocate 

17 funds to States for use in assisting low-income households 

18 in paying eligible transportation expenses. 

19 (c) ALLOCATIONS.— 

20 (1) ALLOCATIONS TO STATES.— 

21 (A) IN GENERAL.—Subject to subpara22 graph (B) and paragraphs (2) and (3), in car23 rying out the program for each fiscal year, the 

24 Secretary shall allocate to each State an 

25 amount to be used by the State in accordance 


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1 with subsection (b) that is equal to the propor2 tion that, as determined by the Secretary— 

3 (i) the total expenditures on eligible 

4 transportation expenses by low-income in5 dividuals and families in the State for the 

6 fiscal year; bears to 

7 (ii) the total expenditures on eligible 

8 transportation expenses by low-income in9 dividuals and families in all States for the 

10 fiscal year. 

11 (B) SET-ASIDE FOR INDIAN TRIBES.—If, 

12 with respect to any State, the Secretary receives 

13 a request from the governing body of an Indian 

14 tribe within the State that assistance under the 

15 program be made available directly to the In16 dian tribe, and the Secretary determines that 

17 the members of the Indian tribe would be better 

18 served by means of grants made directly to pro19 vide benefits under the program, the Secretary 

20 shall reserve from amounts that would other21 wise be payable to the State under this para22 graph for the fiscal year, and pay directly to 

23 the Indian tribe— 

24 (i) an amount equal to the proportion 

25 that, as determined by the Secretary— 


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1 (I) the number of Indian house2 holds in the State that are eligible 

3 households; bears to 

4 (II) the number of Indian house5 holds in all States that are eligible 

6 households; or 

7 (ii) such greater amount upon which 

8 the Indian tribe, and the State in which 

9 the Indian tribe is located, may agree. 

10 (2) ALLOCATIONS TO TERRITORIES AND POS11 SESSIONS.—Subject to paragraph (3), before making 

12 the allocations under paragraph (1) for a fiscal year, 

13 the Secretary shall apportion, on the basis of need, 

14 as determined by the Secretary, not less than 0.1 

15 percent and not more than 0.5 percent of the 

16 amounts made available to carry out this section for 

17 the fiscal year among— 

18 (A) American Samoa; 

19 (B) the Commonwealth of the Northern 

20 Mariana Islands; 

21 (C) the Commonwealth of Puerto Rico; 

22 (D) Guam; and 

23 (E) the United States Virgin Islands. 

24 (3) PRO RATA REDUCTION.—If the amounts 

25 made available to carry out this section for a fiscal 


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1 year are not sufficient to pay in full the total 

2 amount allocated under paragraphs (1) and (2), the 

3 Secretary shall make an equitable pro-rata reduction 

4 to the amount allocated to each State under para5 graph (1), and each territory and possession under 

6 paragraph (2), for the fiscal year. 

7 (d) REQUIREMENTS.—To receive an allocation under 

8 the program, a State, Indian tribe, or territory or posses9 sion shall— 

10 (1) submit to the Secretary an application, in 

11 such form and by such date as the Secretary may 

12 specify, that contains— 

13 (A) a plan describing the means by which 

14 the State, Indian tribe, or territory or posses15 sion will distribute and ensure proper use of 

16 funds made available under the program; and 

17 (B) such other information as the Sec18 retary may require; and 

19 (2) agree— 

20 (A) to use the allocation to provide to eligi21 ble households, for use in paying eligible trans22 portation expenses— 

23 (i) not more than $1500 for a fiscal 

24 year per eligible household, if the eligible 


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1 household is comprised of a single indi2 vidual; or 

3 (ii) not more than $2500 for a fiscal 

4 year per eligible household, if the eligible 

5 household is comprised of 2 or more indi6 viduals; 

7 (B) to conduct, as soon as practicable after 

8 September 30 of the fiscal year for which the 

9 State, Indian tribe, or territory or possession 

10 first receives an allocation under the program, 

11 and annually thereafter before each other allo12 cation to the State, Indian tribe, or territory or 

13 possession under the program, a public hearing 

14 with respect to the proposed use and distribu15 tion of funds under the program for each fiscal 

16 year; 

17 (C) to conduct outreach activities to en18 sure, to the maximum extent practicable, that 

19 eligible households, particularly eligible house20 holds with elderly individuals, disabled individ21 uals, or both, and households with high trans22 portation expenses, are informed of the assist23 ance available under the program; 


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1 (D) to coordinate activities under this sec2 tion with similar and related Federal and State 

3 programs; 

4 (E) to establish such fiscal control and ac5 counting procedures as are necessary to ensure 

6 proper disbursal of and accounting for Federal 

7 funds allocated to the State, Indian tribe, or 

8 territory or possession under the program; and 

9 (F) to comply with such other require10 ments as the Secretary may establish. 

11 (e) NONDISCRIMINATION.—Section 2606 of the Low12 Income Home Energy Assistance Act of 1981 (42 U.S.C. 

13 8625) shall apply to each State, Indian tribe, and territory 

14 or possession that receives an allocation and provides 

15 grants to eligible households under the program. 

16 (f) LOW-INCOME TRANSPORTATION ENERGY ASSIST17 ANCE FUND.— 

18 (1) ESTABLISHMENT.—There is established in 

19 the Treasury of the United States a fund, to be 

20 known as the ‘‘Low-Income Transportation Energy 

21 Assistance Fund’’, consisting of such amounts as 

22 may be appropriated or credited to the Fund under 

23 paragraph (2). 

24 (2) TRANSFERS TO FUND.— 


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25 

•S 1238 IS

1 (A) IN GENERAL.—There are appropriated 

2 to the Fund amounts equivalent to amounts 

3 collected in the Treasury as revenue under sec4 tion 5896 of the Internal Revenue Code of 

5 1986. 

6 (B) RULES REGARDING TRANSFERS TO

7 AND MANAGEMENT OF THE FUND.—For pur8 poses of this subsection, rules similar to the 

9 rules of sections 9601 and 9602 of the Internal 

10 Revenue Code of 1986 shall apply. 

11 (3) EXPENDITURES FROM FUND.— 

12 (A) IN GENERAL.—Subject to subpara13 graph (B), on request by the Secretary with re14 spect to any fiscal year beginning after Sep15 tember 30, 2007, the Secretary of the Treasury 

16 shall transfer from the Fund to the Secretary 

17 such amounts as the Secretary determines are 

18 necessary to allocate funds to States under the 

19 program for such fiscal year. 

20 (B) ADMINISTRATIVE EXPENSES.—An 

21 amount not exceeding 5 percent of the amounts 

22 in the Fund shall be available for each fiscal 

23 year to pay the administrative expenses nec24 essary to carry out this section. 

Æ 


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